strategist2
Guardian
- Joined
- May 19, 2010
- Posts
- 323
- Society
- Lost Renegades
- Avatar Name
- Stryder Stride Corban
I have recently started the painstaking task of going through the shops on Calypso.
I have seen some really good setups, marketing, and layout. I have also witnessed some very poor and dismal examples.
I am reading Milton Friedman's book Money Mischief and it started me thinking on how for the savvy player the "game" of EU needs to be looked at with an eye to the economic potential inherent in this Universe.
This brief study will look at the following factors:
I. Economics of EU
A.What is MU
B. Key Factors of Demand
C. Profit to be made
II. Shops
A. Why Shops Work
B. Why Shops Fail
C. Ideas for future shop improvements
D. Shop Location, Location, Location
III. Marketing in EU
A. How to be effective
B. Paid Marketing Services
C. Word of Mouth
D. Marketing Ideas to Test
IV.Summary
I. Economics of EU
A. What is MU?
What is mark up? Markup is "2. An amount added to a cost price in calculating a selling price, especially an amount that takes into account overhead and profit."
B. Key Factors of Demand
What does this mean for the Entropia Player? First that in EU the selling price for an item TT + MU is based on some key factors of demand: quantity available, cost to loot, rarity, market manipulation, and social/emotional desire.
Demand related to quantity available for an item can be caused from a variety of EU factors. Some common ones are events, land grabs, and migrations.
When a bunch of players go into a Land Area for an event and shoot thousands of PEDs of ammo into mobs the looted items that drop flood the market by way of the Auction House.This results in the markup being lowered because most hunters need to sell their items in order to be able to go out and hunt again. They are willing to list their items for less than the daily, weekly, or monthly markup on the chance of going and hitting another global, or even a HOF.
The wise hunters stockpile their loot and wait until the TT + Markup resets to normal or even higher prices and then sells thus making a profit. Fast gratification in EU can equal a very low PED card. This is what Skippie said
3- have a proper bankroll. sometimes when a loot comes out like bl1300 or hl11 is atm, most players sacrifice markup to turn over peds to their card immediately. know that maybe holding those guns till the market comes back on the item (i.e. when ppl get sick of prots) is the way to go. when something is looting an supply is high, its always the worst possible time to sell that loot. sell pk armor around pk events. sell esis on the weekend. maximize your loots. dont be afraid to ask for more when you list your items on auction. you'd be surprised how easy it is to sell an L gun or something for more than daily or weekly when the supply is not so high and the demand is going up. most ppl loose in eu because they sell their loots wrong, due to a improper bankroll, more than because they don't have a great damage per pec.
Land grabs are going to jack up the price on Player Kill equipment as the need for high damage per second and rare limited PK armor goes up.
Migrations can cause the demand for Faps and weapons to rise. Most of these will be on the crafted not looted side.
Cost to loot plays a role in the markup of an item. If you are going to buy Robot Flare Filters, you will notice that the price is high due to the fact that the total cost for being able to hunt this mob is very expensive. You need high skills, armor, weapon, and bankroll to efficiently hunt them.
Rarity is more of a factor determined by MA and affects the MU. It is true that when an item drops or a miner finds some rare ore/enmatter that until that item is sold back to TT, or that ore/enmatter is crafted into an item, or the MindArk Balancing Manager adjusts drop rates, that the chance of finding that rare item ore/enmatter drops accordingly thus resulting in a higher price if there is a high enough demand.
Market manipulation can affect the MU by resulting in one person or several trying to buyout and control all the items in a particular area. For example someone could buy all the vigilante harnesses and hold them until another Bot Event happens. Then that person could sell those harnesses for a high price due to there being a demand because of the event and because that person controls the market by having most of the vigilante harnesses.
Social/emotional desire can affect prices for no reason. What is hot everyone has to have. You can see everyday on Wall Street people buying penny stocks from the advice of email scammers promising the next get rich quick scheme. Those scammers do this to increase their own stock price in that penny stock and then sell for a profit.
A good example of social and emotional desire can be found from the opening of Arkadia. I crafted some of the first items there. It was a lot of fun, but the price to buy the blueprints I needed and the cost of the ores was insane. This resulted from the hype and the social/emotional desire to be the first to craft this or that item.
Another good example is Gungnirs. When they first came out the price was like 2k of peds for one. Now you can buy one for about 75 Ped because of the many blueprints looted from people hoping for Quad blueprints and Space thrusters.
C. Profit to be Made
The wise person decides to plan on setting aside so much PED in order to trade. They do this with an eye to the knowledge of TT + MU and knowledge of the key demand factors. They study the Auction House and learn what has good volume, meaning that it sells often, and good MU. These two key factors can help every player profit.
For the beginning trader a deposit of $50 to $100 can start you on your way. That deposit of 500 PED or 1k of PED will allow you to makeup your losses from hunting, mining, or crafting.
II. Shops
A. Why Shops Work
Shops are expensive, but can be profitable. The key factors that make shops work are layout, specialization, knowing who you are selling to, pricing under Auction House, and Networking
A good layout does wonders for a shop. The new shop style furniture from Arkadia is perfect for this. Using a retail counter and some display shelving can result in a very nice look. Try to have a clutter free and open layout.
A few layout suggestions:
If you are going to sell blueprints, make sure to let people know if they have quality rating or not. It is frustrating to have to click on all the blueprints and have them all be 0 QR. Place blueprints on a flat table and separate them enough that when highlighting the text does not jumble. Also separate them according to the crafting field and bp level.
Rare items look good on wall displays and they tend to stand out. In retail stores, the items that the store wants to sell are always placed at eye level.
Use signs above a shopkeeper to show what they carry. Many times it is pandoras box when you open a shopkeeper. It could be good or bad.
Thanks goes to Mordrell for the following suggestions:
1) A great sign outside a shop or stall that stands out and says what you sell makes a big difference (I don't want to run in to every shop to see what they sell, and will run past a shop with no sign)
2) It is immensely irritating when an item in a shop has no sale price on an item (ie a gun mounted on the wall for decoration in a shop that sells weapons)
3) Do not use mannequins unless you are selling clothes/armor...
4) This comes down to keeping shops stocked but it is irritating when a shopkeeper has no items inside.
Now to specialization:
Specialization means that you need to focus on one or two areas. Shops have limited space and you could fill it with everything from Daikiba statues to Blazzar fragments, but you need to decide on what you want to carry.
This is generally influenced by your PED card, interest, and what sells. Try to have a shop that carries things you enjoy. This will help you want to want to put more time and effort into making your shop a success.
Studying the markets will give you an idea of what in your interest field sells well. Some Mining Amps sell better than others. Some people like items from other planets and even TT items can sell well.
Knowing who you are selling to is very important. Are you going to be selling to wealthy EU residents then your selection is probably going to tie up thousands of PEDs and your turnover on items will be small. Or you could sell to the new player and tie up a smaller amount of ped and turnover a lot with items that every new player needs. Deciding on this will help in your shop layout and stock selection.
Pricing under Auction House is always the way to go. The cost for selling in shops is less than on the Auction House so you should therefore pass the savings onto your customers and entice them with lower prices. If you do have items that show higher than weekly on market value, you should try to explain why this is. Maybe your items are high tier items or the stock on Auction was all sold out.
Networking is key. SOCs do a good job in putting different players in touch with others. But as a shop owner, you need to develop trade partnerships with others. If you don't have enough PED to adequately stock your shop. Maybe consider offering shop space to rent to others. This way you make some monthly income and you have more items to show. Just remember to keep them in line with your shop specialization. Also, if you craft your items that go into your shop maybe look for partnerships with people that mine, trade, or for component crafters that regularly craft components you use.
B. Why Shops Fail
The shops that fail do so because they don't have regularly updated stock, don't have good customer service, have a poor layout, and fail to understand their buyers.
Regularly checking on your shop and updating items as they are sold is key. Make sure that you at least check your shops and update on your forum thread what you have added that is new. Also, you can lose PED by having prices that are outdated and way below Auction House rates.
Customer service is crucial. You can make a life long EU customer by how soon you follow up with a need, concern or complaint that a customer has.
A poor layout will make people not want to shop. If it takes them twenty minutes to find something, chances are they will go to your competition that has everything neatly setup.
If you are going to sell to higher level players, have high levels items. Selling TT items in a shop that you want geared towards higher level players is only going to turn them away.
C. Ideas for Future Shop Improvements
Have a system setup so that shopkeepers can be put inside a shop but can be managed by the owner of the shopkeeper and not the shop owner. This would allow more players to break into the shop owner field.
Allow shop owners to set aside some of their item slots for others to rent and use.
D. Shop Location, Location, Location
Buying a shop at a good location is key as well. Study the traffic patterns and watch how many people come and go from a particular mall location.
III. Marketing in EU
A. How to be Effective
Marketing in EU can be very rewarding and profitable for your shop business. The key things to remember to being effective are saturation, simplicity, and symbolism.
When you start planning on marketing your shop you need to think of saturation. The concept of putting your message in front of as many EU players as possible. This could include forum posts, in world advertising, web banners, spamming trade chat, and the list is endless. Youtube videos seem to be popular and garner much attention on the forums. Creating or hiring someone to design a professional promotion video would be good.
You need to remember KISS. NO, not the band. The acronym for Keep It Simple Stupid. Have a simple message or tag line for your business. For example if you sell mining amps say Brandon's Mining Amps - amazing service, low prices. Right there you are telling potential customers that you care about them and second you are going to give them a good deal.
You should take the time to design or create a shop symbol and display it proudly on your forum posts, and in your shops and on advertising. This way people can recognize you and your brand. Most people learn better visually.
B. Paid Marketing Services
Below is a list from the Services Thread of Paid Advertising:
BIG Industries l Event Services
BIG Industries l Promotional Services
Duvall the Serviceman (various services)
C. Word of Mouth
The most powerful form of advertising is word of mouth. Work on setting yourself apart by having done everything talked about previously by following the good key factors for a successful shop. Reward repeat customers and create a loyal customer base.
D. Marketing Ideas to Test
Run weekly prize and event contests in your shops to boost sales.
Put an item very close to TT price and have people scavenge to find it.
Offer paid referrals for large MU items.
Allow people a discount on items for referring customers.
Create a website to advertise your business.
Setup an email or twitter list to send out mailings on shop items and sales.
Host a EU radio station party at your shop with prize giveaways.
IV. Summary
I hope this guide has proven useful for all EU players and especially for shop and shop keeper owners.
Any comments, improvements, even critiques I gladly welcome.
Stryder
I have seen some really good setups, marketing, and layout. I have also witnessed some very poor and dismal examples.
I am reading Milton Friedman's book Money Mischief and it started me thinking on how for the savvy player the "game" of EU needs to be looked at with an eye to the economic potential inherent in this Universe.
This brief study will look at the following factors:
I. Economics of EU
A.What is MU
B. Key Factors of Demand
C. Profit to be made
II. Shops
A. Why Shops Work
B. Why Shops Fail
C. Ideas for future shop improvements
D. Shop Location, Location, Location
III. Marketing in EU
A. How to be effective
B. Paid Marketing Services
C. Word of Mouth
D. Marketing Ideas to Test
IV.Summary
I. Economics of EU
A. What is MU?
What is mark up? Markup is "2. An amount added to a cost price in calculating a selling price, especially an amount that takes into account overhead and profit."
B. Key Factors of Demand
What does this mean for the Entropia Player? First that in EU the selling price for an item TT + MU is based on some key factors of demand: quantity available, cost to loot, rarity, market manipulation, and social/emotional desire.
Demand related to quantity available for an item can be caused from a variety of EU factors. Some common ones are events, land grabs, and migrations.
When a bunch of players go into a Land Area for an event and shoot thousands of PEDs of ammo into mobs the looted items that drop flood the market by way of the Auction House.This results in the markup being lowered because most hunters need to sell their items in order to be able to go out and hunt again. They are willing to list their items for less than the daily, weekly, or monthly markup on the chance of going and hitting another global, or even a HOF.
The wise hunters stockpile their loot and wait until the TT + Markup resets to normal or even higher prices and then sells thus making a profit. Fast gratification in EU can equal a very low PED card. This is what Skippie said
3- have a proper bankroll. sometimes when a loot comes out like bl1300 or hl11 is atm, most players sacrifice markup to turn over peds to their card immediately. know that maybe holding those guns till the market comes back on the item (i.e. when ppl get sick of prots) is the way to go. when something is looting an supply is high, its always the worst possible time to sell that loot. sell pk armor around pk events. sell esis on the weekend. maximize your loots. dont be afraid to ask for more when you list your items on auction. you'd be surprised how easy it is to sell an L gun or something for more than daily or weekly when the supply is not so high and the demand is going up. most ppl loose in eu because they sell their loots wrong, due to a improper bankroll, more than because they don't have a great damage per pec.
Land grabs are going to jack up the price on Player Kill equipment as the need for high damage per second and rare limited PK armor goes up.
Migrations can cause the demand for Faps and weapons to rise. Most of these will be on the crafted not looted side.
Cost to loot plays a role in the markup of an item. If you are going to buy Robot Flare Filters, you will notice that the price is high due to the fact that the total cost for being able to hunt this mob is very expensive. You need high skills, armor, weapon, and bankroll to efficiently hunt them.
Rarity is more of a factor determined by MA and affects the MU. It is true that when an item drops or a miner finds some rare ore/enmatter that until that item is sold back to TT, or that ore/enmatter is crafted into an item, or the MindArk Balancing Manager adjusts drop rates, that the chance of finding that rare item ore/enmatter drops accordingly thus resulting in a higher price if there is a high enough demand.
Market manipulation can affect the MU by resulting in one person or several trying to buyout and control all the items in a particular area. For example someone could buy all the vigilante harnesses and hold them until another Bot Event happens. Then that person could sell those harnesses for a high price due to there being a demand because of the event and because that person controls the market by having most of the vigilante harnesses.
Social/emotional desire can affect prices for no reason. What is hot everyone has to have. You can see everyday on Wall Street people buying penny stocks from the advice of email scammers promising the next get rich quick scheme. Those scammers do this to increase their own stock price in that penny stock and then sell for a profit.
A good example of social and emotional desire can be found from the opening of Arkadia. I crafted some of the first items there. It was a lot of fun, but the price to buy the blueprints I needed and the cost of the ores was insane. This resulted from the hype and the social/emotional desire to be the first to craft this or that item.
Another good example is Gungnirs. When they first came out the price was like 2k of peds for one. Now you can buy one for about 75 Ped because of the many blueprints looted from people hoping for Quad blueprints and Space thrusters.
C. Profit to be Made
The wise person decides to plan on setting aside so much PED in order to trade. They do this with an eye to the knowledge of TT + MU and knowledge of the key demand factors. They study the Auction House and learn what has good volume, meaning that it sells often, and good MU. These two key factors can help every player profit.
For the beginning trader a deposit of $50 to $100 can start you on your way. That deposit of 500 PED or 1k of PED will allow you to makeup your losses from hunting, mining, or crafting.
II. Shops
A. Why Shops Work
Shops are expensive, but can be profitable. The key factors that make shops work are layout, specialization, knowing who you are selling to, pricing under Auction House, and Networking
A good layout does wonders for a shop. The new shop style furniture from Arkadia is perfect for this. Using a retail counter and some display shelving can result in a very nice look. Try to have a clutter free and open layout.
A few layout suggestions:
If you are going to sell blueprints, make sure to let people know if they have quality rating or not. It is frustrating to have to click on all the blueprints and have them all be 0 QR. Place blueprints on a flat table and separate them enough that when highlighting the text does not jumble. Also separate them according to the crafting field and bp level.
Rare items look good on wall displays and they tend to stand out. In retail stores, the items that the store wants to sell are always placed at eye level.
Use signs above a shopkeeper to show what they carry. Many times it is pandoras box when you open a shopkeeper. It could be good or bad.
Thanks goes to Mordrell for the following suggestions:
1) A great sign outside a shop or stall that stands out and says what you sell makes a big difference (I don't want to run in to every shop to see what they sell, and will run past a shop with no sign)
2) It is immensely irritating when an item in a shop has no sale price on an item (ie a gun mounted on the wall for decoration in a shop that sells weapons)
3) Do not use mannequins unless you are selling clothes/armor...
4) This comes down to keeping shops stocked but it is irritating when a shopkeeper has no items inside.
Now to specialization:
Specialization means that you need to focus on one or two areas. Shops have limited space and you could fill it with everything from Daikiba statues to Blazzar fragments, but you need to decide on what you want to carry.
This is generally influenced by your PED card, interest, and what sells. Try to have a shop that carries things you enjoy. This will help you want to want to put more time and effort into making your shop a success.
Studying the markets will give you an idea of what in your interest field sells well. Some Mining Amps sell better than others. Some people like items from other planets and even TT items can sell well.
Knowing who you are selling to is very important. Are you going to be selling to wealthy EU residents then your selection is probably going to tie up thousands of PEDs and your turnover on items will be small. Or you could sell to the new player and tie up a smaller amount of ped and turnover a lot with items that every new player needs. Deciding on this will help in your shop layout and stock selection.
Pricing under Auction House is always the way to go. The cost for selling in shops is less than on the Auction House so you should therefore pass the savings onto your customers and entice them with lower prices. If you do have items that show higher than weekly on market value, you should try to explain why this is. Maybe your items are high tier items or the stock on Auction was all sold out.
Networking is key. SOCs do a good job in putting different players in touch with others. But as a shop owner, you need to develop trade partnerships with others. If you don't have enough PED to adequately stock your shop. Maybe consider offering shop space to rent to others. This way you make some monthly income and you have more items to show. Just remember to keep them in line with your shop specialization. Also, if you craft your items that go into your shop maybe look for partnerships with people that mine, trade, or for component crafters that regularly craft components you use.
B. Why Shops Fail
The shops that fail do so because they don't have regularly updated stock, don't have good customer service, have a poor layout, and fail to understand their buyers.
Regularly checking on your shop and updating items as they are sold is key. Make sure that you at least check your shops and update on your forum thread what you have added that is new. Also, you can lose PED by having prices that are outdated and way below Auction House rates.
Customer service is crucial. You can make a life long EU customer by how soon you follow up with a need, concern or complaint that a customer has.
A poor layout will make people not want to shop. If it takes them twenty minutes to find something, chances are they will go to your competition that has everything neatly setup.
If you are going to sell to higher level players, have high levels items. Selling TT items in a shop that you want geared towards higher level players is only going to turn them away.
C. Ideas for Future Shop Improvements
Have a system setup so that shopkeepers can be put inside a shop but can be managed by the owner of the shopkeeper and not the shop owner. This would allow more players to break into the shop owner field.
Allow shop owners to set aside some of their item slots for others to rent and use.
D. Shop Location, Location, Location
Buying a shop at a good location is key as well. Study the traffic patterns and watch how many people come and go from a particular mall location.
III. Marketing in EU
A. How to be Effective
Marketing in EU can be very rewarding and profitable for your shop business. The key things to remember to being effective are saturation, simplicity, and symbolism.
When you start planning on marketing your shop you need to think of saturation. The concept of putting your message in front of as many EU players as possible. This could include forum posts, in world advertising, web banners, spamming trade chat, and the list is endless. Youtube videos seem to be popular and garner much attention on the forums. Creating or hiring someone to design a professional promotion video would be good.
You need to remember KISS. NO, not the band. The acronym for Keep It Simple Stupid. Have a simple message or tag line for your business. For example if you sell mining amps say Brandon's Mining Amps - amazing service, low prices. Right there you are telling potential customers that you care about them and second you are going to give them a good deal.
You should take the time to design or create a shop symbol and display it proudly on your forum posts, and in your shops and on advertising. This way people can recognize you and your brand. Most people learn better visually.
B. Paid Marketing Services
Below is a list from the Services Thread of Paid Advertising:
BIG Industries l Event Services
BIG Industries l Promotional Services
Duvall the Serviceman (various services)
C. Word of Mouth
The most powerful form of advertising is word of mouth. Work on setting yourself apart by having done everything talked about previously by following the good key factors for a successful shop. Reward repeat customers and create a loyal customer base.
D. Marketing Ideas to Test
Run weekly prize and event contests in your shops to boost sales.
Put an item very close to TT price and have people scavenge to find it.
Offer paid referrals for large MU items.
Allow people a discount on items for referring customers.
Create a website to advertise your business.
Setup an email or twitter list to send out mailings on shop items and sales.
Host a EU radio station party at your shop with prize giveaways.
IV. Summary
I hope this guide has proven useful for all EU players and especially for shop and shop keeper owners.
Any comments, improvements, even critiques I gladly welcome.
Stryder
Last edited:
. +rep & I'd have to certainly agree with what Skippie said, I'm actually doing it now 
