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New Skill proposal: Strategic Pricing

Author
Rek Jaiga
Teraa Matar
#1 - 2012-03-21 17:18:41 UTC
Hello everyone. As a recent entry into market-dabbling and an economics minor, I've noticed something that is lacking in the current market system: the ability to "price discriminate". Specifically, the ability to price discrimination in the third degree: by identity of the person buying the good. Allow me to explain how this could possibly benefit the game at large.

I have been in Faction Warfare and its space for a cumulative year or so, and have also lived in 0.0 (mostly NPC, though some sov whiel Sodalitas XX was still around). These areas tend to lack certain goods because of high demand (ships, especially, since they're always being blown up!), or if they are available are at incredibly high prices (I saw Rifters for one million ISK in Stain). As not only a producer selling Thrashers in FW space, but also as a member of the Minmatar militia, I would certainly like to be able to charge very fair prices and get a one-up on competitors while also supporting my militia. The issue here is when the enemy militia buys up my goods. Certainly, I am gaining ISK and this is a voluntary transaction, but as the producer I value the enemy lacking ships to fight with at a higher level than the one million ISK I gain from selling the war target a Thrasher. It would be disastrous if the enemy militia decided to clear market and buy up all the ships I'm selling and use them against me and my friends later I imagine this issue also crops up in "freeported" 0.0: a gang red to the station-holders could theoretically dock up, buy ships and their respective fits in the station, and undock in ships able to take down the very people producing and selling the ships in the first place. So what I propose is this: a skill that lets you permit standings-based markups on one sell order per level, up to a maximum of 1000% of base sale price.


-------------------------
Strategic Pricing:

Proficiency at making price markups based on the reputation of the buyer. Allows the standings-based modification of one sell order's price based on standings per level, up to a markup of 1000% base price
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Of course later skills could be implemented as "Advanced" versions so people with Tycoon trained could possibly markup most or all of their sell orders

Thoughts?
Blatant Forum Alt
Doomheim
#2 - 2012-03-21 17:28:28 UTC
Pointless. No one who produces goods on a large scale would do this, as it decreases their profit margins. There is a hard limit to how low the price goes, as no one is going to want to sell stuff below mineral value, so the actual benefit from this is minimal at best. There is also nothing to stop a fellow FW or corp member buying up your cheap stuff and melting it all down for a profit, plus having a variable sell price will completely screw with peoples trading spreadsheets... in short, no real gain, all it will do is cause headaches and misery.
Rek Jaiga
Teraa Matar
#3 - 2012-03-21 17:42:21 UTC  |  Edited by: Rek Jaiga
Blatant Forum Alt wrote:
Pointless. No one who produces goods on a large scale would do this, as it decreases their profit margins. There is a hard limit to how low the price goes, as no one is going to want to sell stuff below mineral value, so the actual benefit from this is minimal at best. There is also nothing to stop a fellow FW or corp member buying up your cheap stuff and melting it all down for a profit, plus having a variable sell price will completely screw with peoples trading spreadsheets... in short, no real gain, all it will do is cause headaches and misery.


It would help the start-up industrialist, however. For example, just now all of my Thrashers were cleared in a certain market that was lacking them, and have been put back up on the market at a higher price. While I do appreciate the ISK, I also want to offer these ships at a fair cost that is well below regional average price to build up a good reputation. So why shouldn't I be allowed to go into my Transactions, see who is buying me out, and set them red to mark up the prices to them to prevent me being bought out? Certainly, a fellow FW or corp member could try to buy me out, but a further parameter in the skill could be personal standings. As the issuer of the sell order I should be allowed to use my own personal standings list to determine the markup, and if a supposed friendly is trying to screw me over I should be allowed to set them red on my personal standings list to keep them from doing so. The EVE Market as it is now is far too limited in options. In the real world, a firm can choose to sell capital to certain other firms while declining the sale to others (all as the selling firm sees in their best interests). In the EVE world, you simply throw up a sale order and it can be taken by anyone. The contracting system is limited too, as you cannot base those on standings either.

In short, allow sellers to choose who they sell to without having to make a contract each and every single time.
Miss Whippy
Native Freshfood
Minmatar Republic
#4 - 2012-03-21 18:24:15 UTC
I really like this idea. No one wants to sell goods to their enemy OR their industrial competitors.

While hard to implement, I think this is the groundings of an interesting new game play concept.

[URL="https://forums.eveonline.com/default.aspx?g=posts&t=82348"]UI Iteration isn't enough, we need to start from scratch[/URL]

Buzzy Warstl
Quantum Flux Foundry
#5 - 2012-03-21 20:05:21 UTC
This would definitely add a new dimension to market PvP.

http://www.mud.co.uk/richard/hcds.htm Richard Bartle: Players who suit MUDs

Simi Kusoni
HelloKittyFanclub
#6 - 2012-03-21 20:20:40 UTC
Nice idea, currently I sell ships via alliance contracts for exactly the reasons you mentioned. Being able to seed market, and simultaneously provide slight mark ups for alliance members whilst ripping off reds/neuts would be awesome.

And to the guy who claims no one would use it, and goes on about selling below mineral costs, I don't think you quite understood the proposal.

[center]"I don't troll, I just give overly blunt responses that annoy people who are wrong but don't want to admit it. It's not my fault that people have sensitive feelings"  -MXZF[/center]

James Amril-Kesh
Viziam
Amarr Empire
#7 - 2012-03-21 20:39:32 UTC
Anything that improves market dynamics is a plus to me.

Enjoying the rain today? ;)

Bai'xao Meiyi
#8 - 2012-03-22 13:39:16 UTC
*Le Bump!* Awesome idea, Id love this to happen
Lyris Nairn
Perkone
Caldari State
#9 - 2012-03-22 16:21:55 UTC  |  Edited by: Lyris Nairn
I personally love this idea, and you can bet that it would be copiously abused during null sec territorial wars; though, I think a better implementation could simply be to modify the existing market interface and functionality rather than making it skill dependent.

Sky Captain of Your Heart

Reddit: lyris_nairn Skype: lyris.nairn Twitter: @lyris_nairn

Tidurious
Blatant Alt Corp
#10 - 2012-03-22 19:13:00 UTC
A much better idea would be to show names attached to each buy and sell order. Just a new column that reads "Seller" or "Buyer", or even more generic - "Placed By"

There, go market PvP to your heart's content
Leto Aramaus
Frog Team Four
Of Essence
#11 - 2012-03-22 19:48:59 UTC
Tidurious wrote:
A much better idea would be to show names attached to each buy and sell order. Just a new column that reads "Seller" or "Buyer", or even more generic - "Placed By"

There, go market PvP to your heart's content



This should also be done, but its not a "much better idea" than the OP.

OP's idea should definitely be done. Guy who writes "pointless" is just wrong.

the OP clearly stated the "point"... to allow marketeers to not supply their enemies, or at least ridiculously overcharge them, both awesome ideas.
Simi Kusoni
HelloKittyFanclub
#12 - 2012-03-22 20:04:17 UTC
Tidurious wrote:
A much better idea would be to show names attached to each buy and sell order. Just a new column that reads "Seller" or "Buyer", or even more generic - "Placed By"

There, go market PvP to your heart's content

That allows you to not buy from a red, assuming you go to the effort of looking them up or they aren't using a market alt, but it doesn't allow you to automatically charge more for neuts/reds. And it doesn't stop reds buying all your stock.

[center]"I don't troll, I just give overly blunt responses that annoy people who are wrong but don't want to admit it. It's not my fault that people have sensitive feelings"  -MXZF[/center]

Nariya Kentaya
Ministry of War
Amarr Empire
#13 - 2012-03-22 20:22:30 UTC
Leto Aramaus wrote:
Tidurious wrote:
A much better idea would be to show names attached to each buy and sell order. Just a new column that reads "Seller" or "Buyer", or even more generic - "Placed By"

There, go market PvP to your heart's content



This should also be done, but its not a "much better idea" than the OP.

OP's idea should definitely be done. Guy who writes "pointless" is just wrong.

the OP clearly stated the "point"... to allow marketeers to not supply their enemies, or at least ridiculously overcharge them, both awesome ideas.

seller and buyer woudl be terrible to add, then all you ahve to do is look on amrket every few daysa dn see common occuring anmes in the expensive item-lists adn just camp jita with tornados for those players.

like lets say jimmy sells technetium, you implement this... now every day you check amrket and see enw roders from jimmy selling his tech, you realize that jimmy must haul tech into jita everyday, now all you have to do is camp jita until you see jimmy enter grid, and is now dead.
Rek Jaiga
Teraa Matar
#14 - 2012-03-22 20:44:09 UTC
As it stands now you can already find out the owner of a buy/sell order by selling/buying one unit of the good and going to your Transactions journal. While it would be nice to see the owners in a new column in the Market details, what I am proposing is far larger in scope. I want sellers to be able to determine who they want to sell t. Of course the flip side of this is buyers who are set red will receive advance warning of the hiked-up price before they press the "Buy" button, which would help alert them to when they're being set red by competitors. In short, I want the market to be more transparent. If I am a company selling goods and you're a competing or enemy company I SHOULD be able to deny sales to you.
Gizznitt Malikite
Agony Unleashed
Agony Empire
#15 - 2012-03-22 20:58:03 UTC

I think this would be an interesting addtion to placing buy/sell orders.

Unfortunately, I don't know how easily standings can be brought into the market system.
FloppieTheBanjoClown
Arcana Imperii Ltd.
#16 - 2012-03-22 21:11:49 UTC
It's all fine and good until the Goons use such a system to wreck the market for everyone.

No, too exploitable.

Founding member of the Belligerent Undesirables movement.

Rek Jaiga
Teraa Matar
#17 - 2012-03-22 21:18:44 UTC
How would the Goons "wreck the market"? Set everyone else red and never sell a single thing again? Great! That means others can swoop in and make a tidy profit off the resulting spike in demand.
Simi Kusoni
HelloKittyFanclub
#18 - 2012-03-22 21:21:13 UTC
FloppieTheBanjoClown wrote:
It's all fine and good until the Goons use such a system to wreck the market for everyone.

No, too exploitable.
How, exactly?

Unless you convince everyone in Eve to set negative standings on a group, and they don't have any alts, you aren't really going to achieve much. Set higher prices for all neutrals in empire... People can just undercut you :/

[center]"I don't troll, I just give overly blunt responses that annoy people who are wrong but don't want to admit it. It's not my fault that people have sensitive feelings"  -MXZF[/center]

Lyris Nairn
Perkone
Caldari State
#19 - 2012-03-22 21:58:30 UTC  |  Edited by: Lyris Nairn
Rek Jaiga wrote:
How would the Goons "wreck the market"? Set everyone else red and never sell a single thing again? Great! That means others can swoop in and make a tidy profit off the resulting spike in demand.

We wouldn't do this in Jita. We would buy out the entirety of a null sec market with a neutral alt, or a spy in a blue corp, and then we would in the same sell order offer goods to goons to cheaply resupply (Jita +10%) while gouging the local inhabitants (Jita+170%) enough that it hurts them without making them flat-out refuse to buy it.

e: I should emphasize that Jita+10% is pretty par for the course and considered a "good deal" in null sec markets, since it's somewhat dangerous to ship things in for oneself unless one has a jump freighter and a cyno alt, and that Jita+50% is not at all uncommon even in well-regulated hubs like VFK-IV. The simple fact of the matter is that a line grunt isn't going to make a trek to Jita and back to pick up a new ship and fittings when it's time for an op; he's going to buy what's on the local market, even if it's at horribly marked up prices.

Sky Captain of Your Heart

Reddit: lyris_nairn Skype: lyris.nairn Twitter: @lyris_nairn

Rek Jaiga
Teraa Matar
#20 - 2012-03-22 23:26:05 UTC
Lyris Nairn wrote:

We wouldn't do this in Jita. We would buy out the entirety of a null sec market with a neutral alt, or a spy in a blue corp, and then we would in the same sell order offer goods to goons to cheaply resupply (Jita +10%) while gouging the local inhabitants (Jita+170%) enough that it hurts them without making them flat-out refuse to buy it.


Which is entirely fair and realistic! Such things can happen in a real-life market, and such tactics are countered with further tactics. I want to see market PvP be just that: brutal, EVE-style PvP where wits and skill will be your saviour.

Appeals to pathos aside, locals should still be paranoid enough to use the contract system to ensure at least an adequate supply of goods. Additionally, if you did make this entire system skill-based as I originally proposed you wouldn't be able to use a throwaway alt to perform such a maneuver, and once you've used your trained alt just a single time the savvy alliance will red them as well to keep it from happening again. In fact, if I were sitting in a station and saw a so-called neutral dock up and then bump up prices to Jita+170% I would immediately conclude they're a market-flip alt and red them.
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