how to increase prices (contest considerations)
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Guest
how to increase prices (contest considerations)
Hi guys,
if you are contest producers (banana ice cream producer, milk producer, banana producer) you should think abot what's happening at the market now.
maybe you ask yourself why were the prices so high in the evening and are now cut to half?
the answer is easy:
the contest members kill the prices with 2 tricks!
a) split the producers and make them opponents
b) pretend to be a icecream supplier themselves
These are very normal tricks, every business man uses (you can see such tricks if you look in the news about the topic microsoft-yahoo for example) and they are very good.
But you are not defensless!!!!
You have some weapons yourself:
against b you can just watch on the market who sells very low amounts of ice cream. these are the contest players. you should ignore them, tell others about them and/or you should buy their icecream and sell it back to them for a much higher price.
Why is that successfull? If the only supplier of cheap ice cream are some contest players herself, they can't do that trick because they supply their real opponents: the other contest players.
against a you have to do a little more. They can't split you, if you stick together, right? So every single ice producer (or milk or banana producer) who has no fair and realistic deal with you can crash your prices if the contest player can deal with him cheaper as they can deal with you. So everybody loses if one of you suppliers go weak. The solution is to find a fair deal for a big way of the value chain and make it with all suppliers you know.
Example deal and suggestion for discussion:
nobody sells icecream under 1kc/kg
the milk and bananaproducer should get for every ltr or kg 20% of the icecreamprice.
So lets finish this deal finding process fast to deal as one group with the contest players!!!!!
PS: I am not big enough to do it, but maybe one can put this thread in a fax?
if you are contest producers (banana ice cream producer, milk producer, banana producer) you should think abot what's happening at the market now.
maybe you ask yourself why were the prices so high in the evening and are now cut to half?
the answer is easy:
the contest members kill the prices with 2 tricks!
a) split the producers and make them opponents
b) pretend to be a icecream supplier themselves
These are very normal tricks, every business man uses (you can see such tricks if you look in the news about the topic microsoft-yahoo for example) and they are very good.
But you are not defensless!!!!
You have some weapons yourself:
against b you can just watch on the market who sells very low amounts of ice cream. these are the contest players. you should ignore them, tell others about them and/or you should buy their icecream and sell it back to them for a much higher price.
Why is that successfull? If the only supplier of cheap ice cream are some contest players herself, they can't do that trick because they supply their real opponents: the other contest players.
against a you have to do a little more. They can't split you, if you stick together, right? So every single ice producer (or milk or banana producer) who has no fair and realistic deal with you can crash your prices if the contest player can deal with him cheaper as they can deal with you. So everybody loses if one of you suppliers go weak. The solution is to find a fair deal for a big way of the value chain and make it with all suppliers you know.
Example deal and suggestion for discussion:
nobody sells icecream under 1kc/kg
the milk and bananaproducer should get for every ltr or kg 20% of the icecreamprice.
So lets finish this deal finding process fast to deal as one group with the contest players!!!!!
PS: I am not big enough to do it, but maybe one can put this thread in a fax?
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Guest
first of all, I would like to clarify we should make no assumption onto which players must buy contest products , because participating in contest is totally voluntary.
We should realise that cash available from contest players is a fixed amount. Even you can make unlimited ice cream, you still get fixed amount of $. From here, I think you can understand why ice makers are all competitors, because they all share the same cake, but the cake cannot grow big.
Ok, let's say you really wanna make ur cake bigger, how? Squeeze the $$$ from your customer? I would say it's to decrease the price of contest product, or at least make them affordable and reasonable. So more player can afford them and are willing to buy them.
At the end of the day if contest product price shoot thru the roof, I can either ignore this round of contest, or I can make my own.
Imagine big players like those in top 5 assets. If they all make their own ice, where are your profit from?
Consider the mututal benefit man~
We should realise that cash available from contest players is a fixed amount. Even you can make unlimited ice cream, you still get fixed amount of $. From here, I think you can understand why ice makers are all competitors, because they all share the same cake, but the cake cannot grow big.
Ok, let's say you really wanna make ur cake bigger, how? Squeeze the $$$ from your customer? I would say it's to decrease the price of contest product, or at least make them affordable and reasonable. So more player can afford them and are willing to buy them.
At the end of the day if contest product price shoot thru the roof, I can either ignore this round of contest, or I can make my own.
Imagine big players like those in top 5 assets. If they all make their own ice, where are your profit from?
Consider the mututal benefit man~
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Guest
yes all you say is true. The interesting thing about business is, that you are best friend and biggest enemy at the same time and you have to weigh everything like everybody else.
That's why I want to discuss openly about that topic. That everybody who does anything for that contest can hear all arguments and consider herself, what is best her.
You are right that the cake has a limitted maximum. But if the contest players don't have to feed their whole cake they will be very happy. And the producers have a big plus in their pocket if they sell the much less products for their part of the cake.
And I don't think the contest will be less attractive. If you are right with your cake argument a contest player knows that his opponents have a fixed maximum amount, too. so it is not interesting for him, how bananas he can buy. The other will have to buy less bananas, too.
and it really is a fact, that if you have a deal with one contestant you have a bigger leverage against the other players on board.
and to your last argument. It is the biggest problem for icecreamproducers I think. But as a contest player (c.p. from now on) I would not sell all my fixed assets (much expanded buildings what took much time and/or money) to pruduce all my icecream by myself. And the c.p. know that if the banana and milk producers have a profitable, fair deal with the ice cream producers they will not sell directly to the c.p. Because you are a farmer who produces much milk don't have to mean that you are stupid. The pre-product-producers are aware of the fact that the c.p. will press on the prices at the first moment they get pre-product-supply for their own ice factories
That's why I want to discuss openly about that topic. That everybody who does anything for that contest can hear all arguments and consider herself, what is best her.
You are right that the cake has a limitted maximum. But if the contest players don't have to feed their whole cake they will be very happy. And the producers have a big plus in their pocket if they sell the much less products for their part of the cake.
And I don't think the contest will be less attractive. If you are right with your cake argument a contest player knows that his opponents have a fixed maximum amount, too. so it is not interesting for him, how bananas he can buy. The other will have to buy less bananas, too.
and it really is a fact, that if you have a deal with one contestant you have a bigger leverage against the other players on board.
and to your last argument. It is the biggest problem for icecreamproducers I think. But as a contest player (c.p. from now on) I would not sell all my fixed assets (much expanded buildings what took much time and/or money) to pruduce all my icecream by myself. And the c.p. know that if the banana and milk producers have a profitable, fair deal with the ice cream producers they will not sell directly to the c.p. Because you are a farmer who produces much milk don't have to mean that you are stupid. The pre-product-producers are aware of the fact that the c.p. will press on the prices at the first moment they get pre-product-supply for their own ice factories
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LetsTrade
I sell my Banana Ice Cream atm to Dominance Inc. for 650 each. I have a thread in the "Contest Products Trade (R2)" section and offering Banana Ice Cream for 750 but no ones never replys, dont they have forum accounts? The best way for me to sell contest products is to pm or just make contructs with lower price. How much can I pay for bananas anyways? Without being banned, considering that bananas are not the contest product.
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Guest
I am Dominance Inc.
Currently, I am the 3rd biggest company in R2, yet I am far in front of everybody in the contest scores. I have a big money, and I make a lot of profit...and I try to use the contest to help out smaller companies and in turn try to create long term business partners. Yet, I do not pay ridiculous amounts of money on the contests.
For example:
In the beginning, ice cream for the contest was selling on the market for really high prices...(1500 each for example). I do not produce ice cream, so I can not tell you how much it takes to produce it, although I know it doesn't take near 1500c!
Instead, I find suppliers that will sale to me at a discounted price...Such as 500c, 650c, etc. Yes, that is a lot cheaper than you can sell on the market right now...but after the contest is up for a few days there will be less and less companies willing to buy at high prices....yet I will still buy from my suppliers at the agreed price no matter what the market price is. And, for the next contests, I will try to use the same suppliers and help them grow!
So, as a contest product producer....you can try to make quick money in the beginning or make less money to create partners in the long run. Business is more about relationships than it is about money!!!! Do you agree??
Thanks,
Dominance Inc.
Currently, I am the 3rd biggest company in R2, yet I am far in front of everybody in the contest scores. I have a big money, and I make a lot of profit...and I try to use the contest to help out smaller companies and in turn try to create long term business partners. Yet, I do not pay ridiculous amounts of money on the contests.
For example:
In the beginning, ice cream for the contest was selling on the market for really high prices...(1500 each for example). I do not produce ice cream, so I can not tell you how much it takes to produce it, although I know it doesn't take near 1500c!
Instead, I find suppliers that will sale to me at a discounted price...Such as 500c, 650c, etc. Yes, that is a lot cheaper than you can sell on the market right now...but after the contest is up for a few days there will be less and less companies willing to buy at high prices....yet I will still buy from my suppliers at the agreed price no matter what the market price is. And, for the next contests, I will try to use the same suppliers and help them grow!
So, as a contest product producer....you can try to make quick money in the beginning or make less money to create partners in the long run. Business is more about relationships than it is about money!!!! Do you agree??
Thanks,
Dominance Inc.
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Guest
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Guest
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Guest
I agreed with this. I consider contest product as a way to establish relationship and find business partner. So I don't mind selling a lower price if I find a good partner.drunkmonkey wrote:I am Dominance Inc.
Currently, I am the 3rd biggest company in R2, yet I am far in front of everybody in the contest scores. I have a big money, and I make a lot of profit...and I try to use the contest to help out smaller companies and in turn try to create long term business partners. Yet, I do not pay ridiculous amounts of money on the contests.
For example:
In the beginning, ice cream for the contest was selling on the market for really high prices...(1500 each for example). I do not produce ice cream, so I can not tell you how much it takes to produce it, although I know it doesn't take near 1500c!
Instead, I find suppliers that will sale to me at a discounted price...Such as 500c, 650c, etc. Yes, that is a lot cheaper than you can sell on the market right now...but after the contest is up for a few days there will be less and less companies willing to buy at high prices....yet I will still buy from my suppliers at the agreed price no matter what the market price is. And, for the next contests, I will try to use the same suppliers and help them grow!
So, as a contest product producer....you can try to make quick money in the beginning or make less money to create partners in the long run. Business is more about relationships than it is about money!!!! Do you agree??
Thanks,
Dominance Inc.
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Guest
also consider that it may take players a few days before they start producing/selling contest products. when the contest is announced they have to decide many things.
1. can i produce produce X.
2. what must i do to get the required quality.
3. can i add a few extra buildings, or, how much can i expand my existing buildings to maximise production for contest duration.
4. can i buy raw/intermediate products i might require for a satifactory price.
having decided to produce the contest product, researched, built and/or expanded the player produces contest product and joins the increasing number of players competing to sell thier wares. since the best way to ensure your listing sells first you set it at the lowest price and the downward spiral begins.
by the way towards the end of the contest the closeness of finishing ranks also heavily effects the sales. if the differences are small then players may buy to try and improve their finish position (especially at the bottom of the ladder). if the difference is large then why bother (especially at the top of the ladder).
1. can i produce produce X.
2. what must i do to get the required quality.
3. can i add a few extra buildings, or, how much can i expand my existing buildings to maximise production for contest duration.
4. can i buy raw/intermediate products i might require for a satifactory price.
having decided to produce the contest product, researched, built and/or expanded the player produces contest product and joins the increasing number of players competing to sell thier wares. since the best way to ensure your listing sells first you set it at the lowest price and the downward spiral begins.
by the way towards the end of the contest the closeness of finishing ranks also heavily effects the sales. if the differences are small then players may buy to try and improve their finish position (especially at the bottom of the ladder). if the difference is large then why bother (especially at the top of the ladder).
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Guest
gaining experience I changed my mind a little. My mainproduct are bananas and I tried to work out a good deal with many ice producers. But dominance is right. You need to make good relationships with any deal, to safe your longterm business. And I got much more fair contracts and deals with contest-players. Everything turned out a little different as I expected the first day. ^^But thinking only to gain relationship contains a little gamestrategy problem, too. You know the prisoner problem? If both players try to play as partners both gain. But if one plays as partner and the other as parasite it will be a little better for the parasite in short run and worse for the partner-style-player. Business means many many prisoner games.
Yet a big company will have a problem if it makes someone big, who may be a big opponent on other businesses. But if all partners really think and play like partners I can agree 100%.
Yet a big company will have a problem if it makes someone big, who may be a big opponent on other businesses. But if all partners really think and play like partners I can agree 100%.
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Guest
Go for the one you trust thensholvar wrote:gaining experience I...%.
Played 3 months of this game, and now I got a list of players who are trustworthy and therefore preferred to be deal with, and another list of players who I won't do business with them no matter how lucrative their deals are.
I'm sure you will build yours too!
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Guest
I sure hope I'm not on that list..wakaka wrote:...another list of players who I won't do business with them no matter how lucrative their deals are.
I'm sure you will build yours too!
You know guys, at the end of day, remember this is a business simulation game. Sometimes, the way players play does not reflect who they are in real life. All of us do have real life issues to deal with which may alter our business patterns.
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Guest
For a marketwatcher like me it's hard to grasp what is clear to see! Shown here in kapiland i mean and only here. Only a couple of days ago bananas were selling for 150 and now the price has dropped and/or was driven to a fraction of that at around 20! If you consider 5 was a average price before the contest players will continue to produce bananas, it's still a very good deal.
I chose to stop producing, it's only a small plantation and i expect the price to drop even more so it might prove impossible to sell if i set the price too high, yet i have to pay 10% marketcommission.
With milk as well as bananas i'm still in a fog as to understanding which quality is most badly desired. Is this clear to you?
I chose to stop producing, it's only a small plantation and i expect the price to drop even more so it might prove impossible to sell if i set the price too high, yet i have to pay 10% marketcommission.
With milk as well as bananas i'm still in a fog as to understanding which quality is most badly desired. Is this clear to you?
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Guest
Debt, that's fairly normal price behavior for pre-products. People who build factories for contests typically overbuild the final producer because it generally makes more money over the length of the contest. But those factories are useless if they don't have pre-products. So they'll pay up to the point where there's almost no profit left for them, and they build up stockpiles because often the market will empty out and leave them stranded. But, later the stockpiles mean they don't need to buy more because there's enough for the rest of the contest, and owners of pre-production facilities that were making other things switch. So the supply becomes adequate and the price drops off. It was particularly acute with this since the tutorial gives you fruit plantation and so more casual players make a lot of fruit. They take longer to switch, but there are a lot of them, so a big banana shortfall at first and a big surplus later.
As to quality - initially some people want high enough quality that they can finish the product. But eventually the main thing is just buying the Q that has the most being sold. It makes life easier to have one stock each of bananas and milk than 4 of each. WAY easier. Once I got my ice cream Q up I ended up Q0 bananas and Q1 milk.
As to quality - initially some people want high enough quality that they can finish the product. But eventually the main thing is just buying the Q that has the most being sold. It makes life easier to have one stock each of bananas and milk than 4 of each. WAY easier. Once I got my ice cream Q up I ended up Q0 bananas and Q1 milk.
