Product price & cheating

[Guest]

Hi.
In one forum topic I found message below: (i changed names)

... 10%- 50% lower than market price!
...

Becarefull, those kind of prices are considered cheating

I'm now interested in this. Without any calculations I assume that market price for power in realm2 is 0,20 caps per unit, then if I urgently need money and want to sell it faster and lower price for 25% then price per unit will be 0,15 caps. I've seen that price even 0,14 caps per unit in market. That price is in price range that is considered as lower than market price. (If I would calculate average price for power what is available in market I think it would be more than 0,20caps per unit, that means power sold for 0,17caps per unit can be considered as much lover than market price? quite many offers are time to time in market of price 0,17. Maybe market price is NPC price?)
- Now I want to know if player will be deleted in case of selling cheaper products than others or not?
- Where is the limit of product lowest price?
- Does it relate to market sales only or on contract sales, or both?

In case if I have a contract with other company where we sell each other needed prducts:
- What are the rules for prices?
- Contract consists of our both agreements of prices, meaning we can sell even for production price each other, if both sides are ok with that?

Please clarify me these things.
Thank you in advance

[Guest]

I don't have any problem telling that message is mine.
In the forum GoldenEye has stated severall times that the reduction on prices acceptable are around 10% of the market price, cause the main purpose of the game is to make money, so substancial reductions on prices are giving other players (the buyers) advantage over the others. And you can see this in one of is answer regarding this subject:

[quote="GoldenEye"]Hi there.

First of all: The game rules can be found here.
The most important aspect may be

[Guest]

Thx

[Guest]

10% is offcourse strange cause when you take 10% of cars, you got a big discount, when it is 10% of power or water the difference is very little.
When the market price for power/water is 0.20 then noone will get blocked when they sell for 0.15. The difference is much more then 10% but the difference of value is much less.

Market price is two sided to me. When someone buys up all the power so the price is 0.27 it doesnt mean that this is the real market price. Noone that puts up a fax will offer 0.24 (in realm 2) even when there is no cheaper power at that moment. The price that people are willing to give for an item and the price that people consider a right price to sell it for is sometimes much closer to the price you find on the market. The price also depends on how much producers you have and how much buyers.

Dont know if anyone can still follow me :p

[Guest]

10% is offcourse strange cause when you take 10% of cars, you got a big discount, when it is 10% of power or water the difference is very little.

10% is 10% no matter how you turn it someone hasnt been listening at math classes in school eh? let me explain it to you:

if you sell one car for 150k then 10% of it is 15k. if you sell 1 unit of power at .27 10% of it is .027

but if you sell 555555.55555555555555555555555555555555555555 units of power at .27 that is 150k. 10% of it is 15k, same as with the car

[Guest]

The only thing I simply cannot understand is why people try to sell products at lower and even lower prices...

It's simply too high for me. Don't you want to earn Caps? Don't you want your company to grow?
Hmm... I think I got the idea of Kapilands wrong.

[Guest]

well the ad posted is from me about the 10% below market price

here are the many things i want u all to understand

1--- I am a speculator on the market prices, and i make money from buying low, selling high

2--- 10% below market price = 90% of the orginal price, the supplier earns as well as he does not neeed to pay the market commision, which is also 10%

3---- for most products, 10%-50% BELOW market price is not CHEATING, because it is not lower than production costs



Goldeneye, people in kapilands do sell their goods high prices in general, but as i said before, i am a speculator

I do these sell short strategies to earn money off cheap prices, i will tell u how if u are interested.... it is a complicated process and takes quite a long time

[Guest]

I saw that to...
should it really be considered cheating?

for most products, 10%-50% BELOW market price is not CHEATING, because it is not lower than production costs

it could be suggested as strategic selling, but since power as an example only costs ,01 to make...selling it for ,05 would be stupid...but not cheating

[Guest]

the advantage of selling such low at price is that people will buy it almost instantly on the market, but u can still earn a lot


such as putting power on the market at price 0.2 , the goods will be gone in 2 seconds time
but u still earn a 2,000% profit

[Guest]

The only thing I simply cannot understand is why people try to sell products at lower and even lower prices...

It's simply too high for me. Don't you want to earn Caps? Don't you want your company to grow?
Hmm... I think I got the idea of Kapilands wrong.

Everyone wants to earn caps and faster and faster, that`s why everyone tries to sell in market goods for lower rice than other - to receive his profit faster. Now power price in realm2 is approx. 0.17 - 0.19, but lots of power is in market for 0.20+, so maybe after long time that power will be sold too, but while the product is in market your money is frozen. You cant produce and develop while you don't get back your money.

If you sell faster you can expand your buildings faster. And if you try to sell power now for 0.23 for example 100 units, you'll earn 23 caps, but it will take maybe 4weeks or even longer there in market, because now power is available for lower price than 0.23. So, and during that time while you are waiting your power is being purchased for price 0.23 you can produce much more power and sell it fast for lower price. and finally profit will be much more than trying to sell for high price.

[Guest]

Greed, plz give me somewhat more credit. Maybe i didnt explain it right cause im not native english speaking. Like you said ofcourse 10% always stays 10%. When you got a discount of 15.000 for a car or 0.027 for power there is a big difference in price. If you would have done the trouble to completely read my post you would probably have picked that up aswell.


Greets OBHD

[Guest]

well... people do this ( like me and osme of my friends here) as they speculate on the market

they buy goods that they think will rise in prices in the future...

I currently hold massive stocks of oil from the market as i think it will hit q0 130 per unit in the near future
at that time i will put all my stock onto the market or sell to other palyers..
think of the profit this gives me.....

jsut like in real life, people speculate on the stock market and buy/sell shares

[Guest]

Everyone wants to earn caps and faster and faster, that`s why everyone tries to sell in market goods for lower rice than other - to receive his profit faster.

But you do not sell faster if you reduce your price about 50 % at the market than selling for about 10 % lower. Maybe your products will be sold about 5 minutes earlier... but does this really help?
Sorry, but selling faster is not an striking argument.

3---- for most products, 10%-50% BELOW market price is not CHEATING, because it is not lower than production costs

But 50 % below the market price is way too low. I would not guarantee that this is would be riskless...

And about those production cost thing:
Let's make an example... the lowest production costs that you can achieve for wardrobes is ~255 Caps. So selling them at 260 Caps would be higher than production costs.
But it is absolutely too low and this is definetely cheating.
Also this argument does not work properly...

Lower your prices as much as you want but do not complain when you get banned.
When you stick to this 10 %-guideline, everything should be fine... but going lower is risky!

[Guest]

goldeneye
i think i gt waht u mean
but for many products.... apart from high value added ones aka. wardrobes, steel, leather jackets etc

cotton is a good example
the market price is around 40 caps for q0
u sell it at 20 caps
The production price is just slightly over 1 caps each, so it is not cheating right?
people would buy it whatsoever... there are many people who sits in there and watch the market fluctuates and changes ( like me) and they earn a profit out the margin

like me.... i have stocks on nearly everything... and i sell when i think the time is right

Furthermore.... selling low DOES increase your time A LOT depending on what product u are selling and its Price Elasticity of Demand
i once put 10 car bodies out there at market price and it took 3 weeks for someone to buy it
the next time i did it, i put it just 20% lower that market price and it was gone in 5 minutes

that is how i earn my money from
u can earn about 4 million caps out of this by just using 10 million caps cash

[Guest]

-10% is not very clever in my opinion because it has too many exceptions, like:
1. some people give bonuses to regular buyers via contracts, those bonuses can be more than 10% the market price
2. some people want to lower the market price for their interests (e.g. power), there are also people who bought too many coins and lower the price for fun
3. the quality plays a role, so how do you decide what is the price for lets say q12 detergents, when on market you only have q11 for 95 and q13 for 80, and not big quantities either, so
4. if you see 1 unit of stone on market at 12, its ok to sell at 10.8 and
5. if the lowest price of stones is 26.99, you put one at 24.3, next one at 20.9, another at 18.8, all the way to 2 caps and then sell it, so basically you sold at market price - 10% lol