Info: Another profit guide

smartmada

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Entropia universe profit guide
This guide will be divided in in e parts

1-Mid gain bussines model
2-High gaines bussines model
3-Apendix of information and market

All the Market values in the guide are fictive so please inform first about the real ones at www.mytwopecs.com

Part one Mid gain bussines model


Note: This section of the guide teaches effective trading and a
prepping for those not
already involved in EU. If you are already familiar with these concepts,
feel free to
skip to the next section. However, we still recommend you review this
section as it
includes important tips that you may have missed.



Before anyone can consistently profit from any given market, they
need to
understand the supply chain of goods in the market from raw material
to finished
product. They need to understand the motivation for people at each
end of the supply
chain. They need to understand what motivates people to collect the
raw material and
what motivates people to purchase this to make into finished product.
Without understanding your market, you will fail as a trader. You need
to understand
why and when people buy. This information is worth the price of this
package alone.
Let us begin by doing a quick breakdown of the entropia universe economy:Hunter hunts . gets hides
Hunter refines hides, sells to tailor
Tailor combines hides with other materials crafts pants
Tailor sells pants to hunter
The same for a miner
Miner mines, finds ore
Minter refines ore, sells to crafter
Crafter makes armor, sells back to miner

Just like this in so many different ways. Maybe the raw material goes
through a
middleman or maybe the hunter moonlights as a tailor. Regardless, this
is the basic
economy. The mid-gains business model will teach you how to be a
middle man
between the hunter and the tailor per say. How to act as an ease for
other players and
make money in the process
This core guide will teach you a number of techniques to turn a profit
using the
auction and trading system. Nothing described in this guide would be
considered
.illegal. or in violation of the EULA. Take note of the various techniques
and try
them to see which one works best for yourself.

The Middleman

The Middleman is not so much of a secret and already practiced by
numerous players
in-game. How much money you make will In involves going to a heavily
trafficked
area such as Port Atlantis or Twin Peaks and acting as a middleman
between
hunters/miners and crafters.
Mary is new to the game, she goes out and either deposits money or
sweats for
a few hours and earns enough PEDS to buy a gun and some ammo.
She goes out and
hunts some Exosaurs and gets some decent loot
After she runs out of ammo and the hunt is finished, Mary looks at her
inventory and sees that she has 3 PEDS of loot, 2 cans of orange paint
and 20 Animal
hides. Mary goes back to Port Atlantis and scratches her head and
wonders what she
is going to do with 2 cans of orange paint and 20 Animal hides. She
knows that using
a refining machine, she can convert the hides into leather and then
add other materials
that she does not have and attempt to tailor clothing. She also knows
that the paint
can be used to color clothing, but most people need at least 20 cans of
paint to make a
successful attempt.
All Mary want to do is get back out there and hunt Exosaurs, maybe if
she
could find a tailor, she could sell the materials for the tailor to use.
Mary doesn.t
really have the time to stand on the corner shouting for people to buy
her animal
hides. She thinks about putting the 20 hides on Auction, but then she
sees that there is
a 1 PED fee for listing in auction so by doing this she would just end up
losing money
for something so small.
Mary wants to get out and hunt so bad, she doesn.t have enough
money so
she can.t hold onto the hides and paint until she has enough to see at
auction she goes
to the TT machine and is going to sell her hides and paint when she
sees on her chat screen.
.[Traderman] Buying animal hides %180 example - orange paint %300example.
Mary stops right before she confirms the TT transaction and scratches
her head again.
She is very happy that this Traderman character will give her more
money for her
goods than the TT machine.
She goes to Traderman and opens the trade screen. Here instead of
getting 20 PECs
for the hide and 2 PECs for the paint at the TT, Mary finds out that
Traderman will
give her 36 PECS for the Hide and 6 PECs for the paint. That.s more
than double
what the TT machine would have given her. She jumps at the offer and
takes her
money. Before she runs off to buy more ammo to hunt Exosaurs,
Traderman asks if
he can add Mary to his friends list. Traderman tells Mary that anytime
she has extra
materials that she needs to sell, to contact him and he will give her the
best price for
her goods.
So Mary restocks and goes hunting again while we have Traderman
sitting at PA with
the hides and paints he has just bought from Mary. Well Traderman has
been sitting
at PA for the last hour buying all the materials that low level hunters
would have
looted in their hunts. This includes, but is not limited to . paints, hides,
wools, teeth,
armor parts and more.
Now in his inventory Traderman has 900 Animal Hides that he has
bought for %180
or 1.8 PECs each. For a total of 16.20 PEDS money spent. He then logs
onto
www.mytwopecs.com and sees that currently animal hides are selling
on the open
market for %200 or 2 PECs each. That is worth 18 PEDS.
He then sees that Generic Leather is selling for %208 on the open
market. He then
pulls out his trusty refining machine, places the 900 Hides into the
refiner and violia!
Traderman has 300 pieces of Generic Leather ready for sale being
worth a total of
18.7 PEDS.
Let us Do the math
Purchased 900 Animal hides @ 1.8 = 16.20 PEDS invested
Convert to 300 Generic Leather decay cost of refiner = 0.5 PECS
Now 300 Generic Leather at %208 = 18.72 PEDS
That is a profit of 2.52 PEDS on the sale
Now be aware that Traderman well earned this money. He acted as the
middleman
between the 30 hunters with a few hides each and the tailor who can.t
be bothered to
go out and find the hides and just wants to spend their time tailoring.
We need to keep in mind that serious crafters and tailors will never just
buy material
for a few attempts. At EU we know that numbers work through in the
long run, so
crafters are always going to buy their materials in bulk. Hence EU
economy works
opposite as the .real life. economy as some times larger wholesale
quantities of items
are more expensive to save the crafter the trouble of hunting down all
the materials
Traderman will also have a large list of friend contacts so when he has
amassed
enough hides he will contact his people and make the trade to save
him the trouble of
putting it in the auction.
 
continue

Overview of Technique 1 .The Middleman

- As a middleman you are acting as a convenience for players who
need PEDS
right now and are willing to sell at slightly below current market value.
Furthermore you offer a convenience to crafters who can.t be bothered
to go
out and find all their materials.
- As a middleman you must always keep updated on current prices per
mytwopecs.com. Furthermore, always pay attention to the different
prices
between raw and refined materials as the cost of refining is very small.
Ie. At
the time of publication. Animal hide was selling for %200 while Generic
Leather was selling for %208. And Molisk Teeth were selling for %665
while
Molisk buttons (the refined version) was selling for %676. that.s an
%11
percent margin you can profit on by taking the 5 seconds to put the
material
through a refining machine. Some people actually make a lot of money
simply by buying up all the raw unrefined goods, spending a minute to
refine
them and place them back on the open market. There is always room
for this
type of business.

In the next part ill explain some selling techinques and methods.
 
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Selling Techniques and Methods

1 . Face to face
2- Auction


Face to face

This is done through the trade window with other players. You can find
your
customers by standing in a popular area such as Port Atlantis for noobs
or Twin Peaks
for more experienced players and shout your selling message.
Ie..Selling Generic Leather %208.
By doing this for a few minutes you should find a willing customer.
When you find
the customer, it is important to make a connection with them.
Remember that they
are also another person sitting behind a computer. Add them your
friends list so next
time you have something to sell, you can contact them directly instead
of having to
stand on the street to sell your wares.

Selling at auction

Selling in the auction is a tricky and inconsistent business. You have to
be
aware of the nuances of the auction in order to compete effectively.
One thing you
need to be aware of that unlike in Real Life, sometimes selling in large
bulk lots will
increase the price slightly as it saves the crafter the trouble of going
and seeking out
all the goods. Before you list your item, check the .Orders. button on
the auction
page. It is on the bottom right and if you don.t look you will miss it.
These are
standing orders people have places. So if somebody has agreed to buy
up to 5000
pieces of generic leather at .04 PECs a piece and you list 500 pieces
that meet this
price, it will be automatically sold. Furthermore, this is an excellent way
to build
your stock. This is reviewed in the next section.
Selling on the auction you need to be aware of certain things. First off,
you
need to know that for crafters and tailors it is like an addiction. (go and
try it yourself,
you will see) Meaning that when they want to craft, they want to craft.
Meaning that
if you want to do well.
Always Set a reasonable buyout price
For materials it is just not practical for a crafter to bid and then have to
wait a
week until the last five minutes of an auction only to get overbid while
they are out
hunting or sleeping. All serious materials transactions on the auction
are done with a
buyout price. Furthermore, setting a buyout price protects you from
downtime on the
EU server. Time and time again we hear the same story about how
somebody listed
some rare weapon/armor/material etc with a starting bid of 1 PED
knowing that many
people would be interested and bid the price up to well over market
value.
Well what sometimes happens is that smart bidders don.t bid until the
last 5
minutes of the auction (assuming a buyout has not been set) So up
until this time, the
price of this expensive good will be way undervalue. What happens
occasionally is
for whatever reasons the EU servers go down for an update or
whatever. If this
happens at the proposed end time of the auction; the server
automatically ends the
bidding with the last bid before it went down.
This leaves the highest bidder at the moment with a deal of a lifetime
and the
seller pulling out his hair. The morale of the story is:Never Set the Opening Bid to an amount lower than you would
accept.

Back to the buyout price, this is how it usually works with auctions.
Materials
set with a bid and no or over inflated buyout price will usually be
scooped up by
traders and resellers such as yourself who have devoted their time and
energy to
watching auctions and being present in the last 5 minutes of the
auction to claim the
best deals. Regular players and crafters just don.t have the time to
watch auctions all
day. (and henceforth spend money instead of make money)
The resellers such as yourself will then relist these goods at the price
of their
choosing. (more on this in the next section)
So this comes down to the basic question. How much do I charge?
First you are going to need to examine www.mytwopecs.com and
www.peauction.com to get a good idea of the going rate of goods. Take
for example
our earlier story of Traderman and his 300 pieces of Generic Leather. At
the time of
publication, according to My Two PECs, Generic Leather was selling for
%208.
Keep in mind that this value is a combination of auctions without a
buyout set
which usually sell for lower and to resellers and traders such as
yourself. And those
with a buyout set which usually sell for higher than this value to
addicted crafters in
the middle of mass crafting runs.
Your market is the crafters not the resellers, so you can safely assume
that you
are going to be able to sell your good for above the mytwpecs price.
Looking at our 300 pieces of Generic Leather. The TT value of these is
.03
PECs each for a total TT value of 9 PEDS. Times this by %208 and we
have a
current market value of 18.72 PEDS.
Know that in auction everything is by 1 PED increments this would tell
us to
start the bidding at 19 PEDS. However we need to be aware that each
auction we list
cost us 1 PED. So if the Leather sells at 19 PED we only make 18 PED
on the whole
transaction.
So we want to start the bidding at 20 PEDS. This is a fair enough price
for a
crafter who wants the Leather Today and not have to wait 7 days only
to be overbid at
the last moment. We may want to set the buyout also at 20 PEDS or
even at 21 or 22
PEDS. When browsing the auction listing, the crafter will first see the
20 PED price
and think about bidding. He will then see that he only has to pay 1 or 2
PEDS more
to get the leather today and just says what the heck and goes for it.
And there you go, by a small investment of time you have just made a
5 PED
profit.
5 PEDS may seem like a small amount, but that was just for one
example. If you are
dealing in tailoring materials. You will be buying and selling all sorts of
hides, skins,
wools, teeth and paints. Each with its own markup. So for a quick run
that is a 5
PED profit on the Leather but maybe you made a 5 PED profit on 15
other goods for a
75 PED profit today. Sounds good yes. Remember you can.t expect to
get rich off of
one deal. The wealthy create their wealth through work and diligence
The smart seller will do a number of things.
1 . Be aware of the different finances of different players and offer
goods in different
sized bundles. Ie.some players may be able to afford purchasing 5000
Generic
Leather in one swoop while others can only afford to buy 300 at a time.
You need to
learn your market and provide accordingly
2 . Start the bidding at the mytwopecs value and set the buyout price
slightly higher.
It will usually be met.
3 . Keep contact of sellers and buyers to save you time
 
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reserved for Buying Techniques and Methods
 
continu

reserved for section 2 High Gains Business Model
 
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reserved Market 1 - Looted Materials/ Mined Ore
 
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reserved Market 2 . Looted Items (including weapons, armor etc)
 
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reserved Market 3 . Crafted Items
 
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Reserved Market 4 . Skill Implants
 
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reserved Market 5 . Auction Hawking
 
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reserved Appendix of Information
 
The info in this guide is quite out of date. There is a lot about GSIs and animal hides at 180% in there.

Also, I put it to the casual reader that the following paragraph is total BS and not a little funny also:

"Today we will teach you how to become the dreaded RESELLER.
First off we need to tell you that by being a reseller you are going to be
extremely wealthy both in EU and in the Real world. Following this
model I was earning approximately $10,000 every month. You can do the same.
Secondly you need to be aware first hand that by being a reseller that
you aren.t going to have many friends in EU. Your actions will directly cost
them money and they will be at your mercy. In fact it is better not to share publicly what you do."
:wtg:
 
Not suprisingly, creation date: 12-9-2006 22:10:08
 
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