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 Lowest possible retail price without negative results

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Maxwell Oxy
Shipwrecked buddy


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Age : 43
Localisation : USA
Registration date : 2007-10-15

PostSubject: Lowest possible retail price without negative results   Mon 15 Oct - 23:28

It is mentioned somewhere (FAQ's or the Library) that there's a point where the retail price of an item can be set so low that the "customers" will regard it as probably being of low quality(because it's so cheap), and sales will decline as a result. Does anyone know the exact prices, for each commodity, at which this will occur? I'm specifically interested in the Beach Store and Boutique items, but any info would help.

Also, though I've only been playing for a few months, I keep detailed charts every time I log in and I have a lot of data that could be helpful to anyone who might have a question.

Arrow I've found what I referred to, above. It's the second FAQ at the Coco Bar, and it reads as follows:

"2. I sold my orange juices at a very low price, however my results are ridiculous. Why?

Oh yes, the psychological price is an element to be considered, if the price is abnormally low, the consumers risk to be wary and think that you sell goods of bad quality."


Last edited by on Thu 18 Oct - 9:05; edited 5 times in total
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Gladoor
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PostSubject: Re: Lowest possible retail price without negative results   Tue 16 Oct - 11:17

I'm not aware of such an effect and such a point.

But I'm sure this effect (if present) is not within short range from the "optimum" prices (i.e. prices with maximum profit a day, given some constraints).
If you do some calculations in your charts, you will agree with that.
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drooch
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PostSubject: Re: Lowest possible retail price without negative results   Tue 16 Oct - 16:10

Quote :
"customers" will regard it as probably being of low quality(because it's so cheap), and sales will decline as a result

I remember someone posting that in a forum. I don't think there is any truth to this. I sell most of my items slightly above the legal market price and I haven't noticed any kind of effect.

If you want to just make up an excel file and you can see where your most profitable margins are.
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Rivesalte
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PostSubject: Re: Lowest possible retail price without negative results   Tue 16 Oct - 19:58

For someone of chapter 3 I don't think it it is normally an option to sell products under the legal market or at least at the average rasta market price.
Actually I didn't sell the items in my shop(s) with a very low rate and with little profit like tools and coffee for example until I had factories to produce them (or if there was a very good offer at the black market).
I have read that statement too somewhere (I don't think it was in a posting) and I have to agree with Drooch that it is probably not true, for once (I intended to buy a new shop) I sold some products for half the market price and I sold indeed more of them.
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Rivesalte
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PostSubject: Re: Lowest possible retail price without negative results   Mon 22 Oct - 15:39

I made a little test with phonecells today (cloudy weather), price at the legal market L$ 27,50. In one store I sold them for L$ 40 and the sales were 2.5 per hour. In the other shop I sold them for only for L$ 4,00, but there it was 25.9 items per hour, over 10 times more.
So I don't think it is true that sales decline if the prices are to low.

It is also stated that you can loose goods if your stock is over 100 %, but I have never seen that happened. Maybe with a cyclone it can be true, so I am curious anybody has experience with that.
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drooch
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PostSubject: Re: Lowest possible retail price without negative results   Mon 22 Oct - 16:07

Quote :
It is also stated that you can loose goods if your stock is over 100 %, but I have never seen that happened. Maybe with a cyclone it can be true, so I am curious anybody has experience with that.

Yes you do loose your stock if you have your storage above 100% for an extended time. I lost everything when I was in chapter 3. I had my stock at 105% for about 24 hours and when I came back I didn't have anything in storage Mad

I learned my lesson, and now I always keep my stock at less than 100%.
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orthoman
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Registration date : 2007-10-07

PostSubject: Re: Lowest possible retail price without negative results   Tue 23 Oct - 10:08

drooch wrote:
Quote :
It is also stated that you can loose goods if your stock is over 100 %, but I have never seen that happened. Maybe with a cyclone it can be true, so I am curious anybody has experience with that.

Yes you do loose your stock if you have your storage above 100% for an extended time. I lost everything when I was in chapter 3. I had my stock at 105% for about 24 hours and when I came back I didn't have anything in storage Mad

I learned my lesson, and now I always keep my stock at less than 100%.

Thanks Drooch...I have had stock leves 100% for short periods of time (less than 12 hrs) without adverse effects....won't do it for >24 hrs based on your advice.

Where do you live in Ohio? I am from Columbus and was an OSU lifer....GO BUCKS!!!!
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drooch
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PostSubject: Re: Lowest possible retail price without negative results   Tue 23 Oct - 16:51

Originally from the Lima area, but went to OSU and lived here ever since.

Go BUCKS Very Happy
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