Quality fee on individual products

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Quality fee on individual products

Post by Guest » 09.02.2012, 15:30

Ever since I took an involuntarily (I have maths complex) economics course during my studies I've been questioning the way I add quality fee to my products. Up until now I have left out adding a quality fee on each component and only added it to the final product that I sell.
At first I thought I'd have to calculate the amount of products I would have to sell to get back the money I spent on research. But that becomes so very complicated with a whole chain of products affecting everything.
Just a little while ago I looked at my excel sheet and moved things around to include a quality fee on each component, but it looks really wrong.

So my question for all other quality researchers are:
what is your tactic?

Guest

Re: Quality fee on individual products

Post by Guest » 10.02.2012, 16:35

I once calculated the optimal price increase for wardrobes (which turned out to be a linear function of quality), but it involves a lot of variables. I learned that it is quite enough if you keep the selling time by changing the price according to the quality of products (for example, if you sell q0 sausages in 10 hours for price of 10 caps, then sell the same amount of q1 sausages for price of, say, 11 caps in 10 hours.

Guest

Re: Quality fee on individual products

Post by Guest » 10.02.2012, 17:02

I did the same as greed although I used 3 or 4 products in a row of qualities to see what each Q was worth. Could not tell you what the results were though it was at least a year and a half ago and I wiped my laptop since then and didn't want to recalculate it all.

Guest

Re: Quality fee on individual products

Post by Guest » 11.02.2012, 13:29

Good to hear I'm not the only one who thinks this sort of pricing could be difficult to set.
I think your tip, Greed, is a good one. Slight modification and it would probably go well with any product.

This morning I remembered that increased quality doesn't increase production price a whole lot (for food anyway) so I have lowered the quality percentage profit to 1% instead of the previous 10%. Might sound extremely low but with an increase of 0,02¢ per sausage Q, 0,46¢ is a nice quality fee profit.

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