On the Virtues of Reasonable Pricing
•
by Devoid
Lol what a silly title. I'm not here to try to implore anybody to think of their countrymen, and work for the greater good and all of that (though if you're a commie and want to do that, go ahead, but that's not why I'm here). I just want to make a point here.
^not picture😛
me
Let's say you're selling iron on our market. Or stone, or anything else in low supply, it doesn't matter. Since you're nearly alone on the market, you can offer your stone for 0.05 NZD per unit, and given how incredibly strong our currency is right now, what an amazing profit that looks like!
But here's the problem: You aren't going to be able to sell that stone at that price. No business owner could pay that much for raw materials and succeed. I propose that you should lower your price to 0.01 NZD per unit. Obviously, you can't go lower. But our currency is so strong right now that even 0.01 NZD is more than you're going to get elsewhere in the world. Let's make a quick comparison to the eUS, since they're big and ugly and have everything.
1 unit of stone @ 0.01 NZD (@1NZD = 0.1 GOLD) = 0.001 GOLD
1 unit of stone @ 0.03 USD (@1USD = 0.02 GOLD) = 0.0006 GOLD
And that right there is a 67% increase in price over the international rate. Plus, I'd bet it'll actually sell!
This goes for all goods here (I'm not saying you should sell tanks for 0.01 NZD, work with me here). Horribly overcharge, and you aren't really going to sell much. But charge a reasonable price, which still may be a fair amount higher than the international price, and you're going to actually sell your stuff, and make some good profits in the process.
- Devoid
eNZ Minister of Trade
Facebook
Twitter
Discord
Comments
GREAT SUCCESSS
*tap*
^in that picture
Death to communism!
Death to Kiwis!
Gypsy tears will protect Kazahkstan!
You should also reckon on the fact that we have 26 Grain companies, 18 food companies, 1 Iron company, no arnament factories and just the one construction company.
That one construction company is also sorted for Stone as it has an affiliate in Canada which is currently the only importer of stone to eNZ.
[removed]
yay economics! 😛
ITT Economic Genius; Good tips for the Kiwi Economy
How can I make profit from selling things, when NOTHING actually sells, ANYWHERE. The only thing selling in the eWorld, that is fairly sustainable is food, which will die as soon as admin introduce the new hospital rules. Tanks and helis are selling at WAY below cost price and THATS the only reason THEY are selling
We may as well just shut all companies and watch the game die.
You have to reduce the cost price of weaponry. Unfortunatly the one work skill module means you are in competition with the food and raw materials sectors which are currently booming.
The effect should start to level out once exsisting surpluses have been purchased but unless they do so entirely then governments are going to have to enact economic measures or directly produce weaponry if any small nation is to have its own supply to hand.
Great job Mr. Trade
GREAT SUCCESS! (:
Voted n subed
I'm a newcomer to this brand new eCountry. Who isn't, anyway?
You know what's the wery first thing that strikes a newcomer's eye? Everything is far too expensive, due to the incredibly high NZD/gold ratio. Unless this is fixed, no economic boom can happen.
To this moment almost every eNZ citizen (including myself) has immigrated from some other eCountry; almost every eNZ citizen, while working at a high eNZ salary, can actually buy goods (i.e. food or weapons) from abroad at considerably lower prices than the domestic ones.
Given this unrealistic NZD/gold ratio, our eCountry can not establish a viable productive infrastructure. Not to mention we won't be able to make any exports at all.
Ah, yes! Voted & Subscribed!