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	<title>Comments on: Product Differentiation in Entropia?</title>
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	<description>Citizens of Entropia Universe</description>
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		<title>By: Dane</title>
		<link>http://synergencorp.com/2009/03/21/product-differentiation-in-entropia/comment-page-1/#comment-13</link>
		<dc:creator>Dane</dc:creator>
		<pubDate>Mon, 30 Mar 2009 19:02:37 +0000</pubDate>
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		<description>Thanks Ook.

The information is helpful.  I will share an approach I am now trying and welcome feedback.

The market for textures in EU is limited at this time on the supply side as well as the demand side.  I have published a price list of textures on the EU Forum, together with the quantity I have in stock.  Buyers are invited to order from the list.  The quantity ordered will then be placed in a shopkeeper at the list price. The buyer is notified by PM and can pick up the textures at the buyer&#039;s convenience.

The price list is extensive, with over 70 varieties of textures listed at any given time.  This variety of textures is not available in any shop and rarely available at auction.

This value-added service has been offered for about 2 weeks and generated a handful of sales.  I anticipate that the volume of sales will increase as more people become aware of the price lists.

Here are two drawbacks I see with this type of business model.  First, most customers do not want a significant delay between placing an order and buying the textures. Thus, I need to check for private messages frequently and jump into the game promptly to fill the orders. Second, there is a significant &quot;investment&quot; in carrying a large inventory.  My inventory is currently about 5K peds tt.  10K inventory would allow a more extensive pricelist.  Turnover is relatively low and other trading activities would generate higher returns from faster turnover of capital.

If this business model works, it might be applied to other types of items in EU -- possibly some of the higher level components.

Comments and suggestions would be appreciated.

Dane</description>
		<content:encoded><![CDATA[<p>Thanks Ook.</p>
<p>The information is helpful.  I will share an approach I am now trying and welcome feedback.</p>
<p>The market for textures in EU is limited at this time on the supply side as well as the demand side.  I have published a price list of textures on the EU Forum, together with the quantity I have in stock.  Buyers are invited to order from the list.  The quantity ordered will then be placed in a shopkeeper at the list price. The buyer is notified by PM and can pick up the textures at the buyer&#8217;s convenience.</p>
<p>The price list is extensive, with over 70 varieties of textures listed at any given time.  This variety of textures is not available in any shop and rarely available at auction.</p>
<p>This value-added service has been offered for about 2 weeks and generated a handful of sales.  I anticipate that the volume of sales will increase as more people become aware of the price lists.</p>
<p>Here are two drawbacks I see with this type of business model.  First, most customers do not want a significant delay between placing an order and buying the textures. Thus, I need to check for private messages frequently and jump into the game promptly to fill the orders. Second, there is a significant &#8220;investment&#8221; in carrying a large inventory.  My inventory is currently about 5K peds tt.  10K inventory would allow a more extensive pricelist.  Turnover is relatively low and other trading activities would generate higher returns from faster turnover of capital.</p>
<p>If this business model works, it might be applied to other types of items in EU &#8212; possibly some of the higher level components.</p>
<p>Comments and suggestions would be appreciated.</p>
<p>Dane</p>
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