All in the family?!

Discussion in 'San Francisco: In game (Dreamscape)' started by Inaryn, Nov 14, 2017.

  1. Inaryn

    Inaryn Squire San Francisco Staff Marshal

    You just don't know when to quit, do you?

    Let's just examine my theoretical profits for a moment. Let us say that I make 3 batches of Cure Mortal Wounds. I can make 5 in a batch. If I weren't so experienced, it would cost me more to make them, but, as it is, my first batch costs 160 copper, my second 320, and my third 480 coppers. Combined that is a total of 960 coppers. Almost 10 gold.

    Now, I sell those for 1 gold each. I'm pretty staunch on that position, and for good reason. I have made 15 Cure Mortal Wounds potions. If I sell them for 1 gold each, and it cost me nearly 10 gold to make them all, then my actual net profit is only 5 gold.

    So, my theoretical profit is really quite closer to 50%.

    That is assuming that I completely sell everything I have made with those 3 batches.

    And that is also assuming that I am not making deals and sweetening purchases with gifts.

    I am not just a merchant. I am a producer. I do not have to triple batch. This community has demonstrated a need for increased product availability, however. As such, I have willing cut into my own profits in order to produce more consumables for the community.

    I do not go out and slay monsters to make my profit. I am no Calderon or Kjeld, nor am I a Loxias or Kart. I do not charge forth and smite evil. I am not some great hero. No, I am a supporting actor in their fight. And, truly, that suits me. I'd rather not find out if I am a stalwart spirit.

    I provide a service to the community of White Tenebrous Walkers. Do you truly think that I do not deserve to actually make my living as such?

    How DARE you insinuate that I am gouging people on prices! My prices are, as I have demonstrated, perfectly fair and reasonable! Would you have me be poor? Would you have me be unable to provide for my son? Or maintain my tavern?

    All in the family?! Nay, you are no family of mine. You are but a scoundrel and a knave, a blackguard come to deprive me of my livelihood. There will be no pleasantries between us. You have shown your true colors and they are dark and unprincipled.

    I'll not have it! Away with you scapegrace! You will find no respite from my indignation!

    Vivienne Cerise Marquet
    Master Potion Brewer
    Journeyman Scroll Scribe
    Journeyman Alchemist
    Hearth-mistress of the Harlequin
    Purveyor of fine purses
    Merchant Extraordinaire
     
  2. Gypsy Bard

    Gypsy Bard Newbie

    Vivienne,

    Not to argue your merchanting math, but you actually are selling yourself quite short. While you do have a 50% profit from this transaction, your margin is only just over 33%. Since you are needing the initial capital to reinvest in producing more goods, that is not calculated in a margin aspect. To be making a 50% profit margin, you would actually need to sell that 10g investment for 20g.

    From my experience a 30%-35% margin is not unreasonable in your profession, and operating at a much lower rate would make it unsustainable. As demand increases, you would have to batch more, thus increasing your costs and increasing the cost for each item. I personally do not see you gouging in any way. You have spent significant time honing your craft and should, as such, be compensated for it.

    Given the fact that your means of income is solely that of a merchant, I feel that your operating cost is reasonable and the margin acceptable. I will speak with you privately to see about potentially ordering more of your goods and supporting local economy as such. Thank you.
     
    Inaryn likes this.
  3. DiscOH

    DiscOH Newbie

    I still can't tell if you are actually upset. It's hard to imagine you actually being confused.

    You can't sell any commodities at x3 if the public price is lower than that. Now it is.

    You would actually have a 108% profit margin (432 copper) if you would just stop triple batching and lower prices to 2.5 (which is the local market value), but if you want to keep throwing coin away because you can't plan for the future...

    Well, there is a reason 50% of business fail in the first 5 years.


    Just to be clear, there is no shortage of merchants making commodities. I wanted to make sure you weren't left behind.
     
    Last edited: Nov 14, 2017
  4. Gypsy Bard

    Gypsy Bard Newbie

    Desky,

    Correct me if I'm wrong, but the production cost of a single cure mortal wounds potion is 4 silver? Would that not make 1g a value of 2.5x production?

    Also, I am not sure if you are aware or not, but Vivienne completely sold out of her potion stock so there is obviously a demand for a triple batch to be performed if she is able to sell them at that cost.

    You yourself offered to sell me 10 Cure Mortal potions for a price of 9g 8s - yet her price of 10g is gouging? According to your math, you are gouging me as well, just slightly less so.

    I am rather confused at your concepts of supply and demand. True, Vivienne could in theory only double batch and sell each potion for 8 or 9 silver, thus increasing her profit margins and reducing cost - but please ask around and see if anyone thinks that saving that extra one or two silver is worth having 10 less cure mortal potions available for purchase. You do not understand the apparent DEMAND that is in our economy for some types of potions.

    Additionally, let us say Vivienne does make fewer potions - and suddenly your supply dries up or does not have the custom orders available at the time it is needed. What does the town do then? Suffer because we did not have the stock available? Pay more so Vivienne can make emergency batches at that time causing us to temporarily double or triple the costs?

    Her prices will reduce when the demand reduces. If she has stockpiles of potions left unsold, I'm sure we will see that reduction. If you wish to peddle your wares, do so as well and help reduce the costs all around, but I am growing weary of your constant ramblings about how to make things better when you yourself are an outside entity that has little experience in our lands economy and does not contribute to the production of goods, rather act as a go between for other merchants.

    If being the go between is your goal, do so. Advertise your goods at their costs and be done with it. If your costs are better and you build your relationships, then people will buy from you and not others, forcing them to change practices. If they don't, obviously you are missing something. Either way, please cease this persistent droning about fixing the system as it is doing nothing to improve things.
     
  5. DiscOH

    DiscOH Newbie

    I'm not going to have this conversation again. It bores me.
    Last we talked she said she sells at x3 base production. I offered to send her orders if she could provide them at 2.5x.

    That's all.
     
    Last edited: Nov 14, 2017
  6. Inaryn

    Inaryn Squire San Francisco Staff Marshal

    I do sell, generally, at 2.5. I said I’d sell to you at 3... because you’ve been nothing but foul and dastardly toward me. And now, I won’t sell to you at all.

    ~Mistress Marquet
     
    DiscOH likes this.
  7. DiscOH

    DiscOH Newbie

    Great!

    I'd misunderstood you then.

    Glad everything's been settled.
     
  8. I am fairly sure that this has settled things for many people here!

    @Vivienne Cerise Marquet, I would love to purchase from YOU. I think 15 Cure Morts to start. Please seek me out next we meet.
     
    Inaryn likes this.

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