Trading Guide: Buying/Selling Transactions

itto · May 24, 2005

Original articla can be found on the Coat Killers website and is written by Demosthenes

Trading Guide: Buying/Selling Transactions
by Demosthenes

First, one MUST understand what the TT (Trade Terminal) value means. From now on think of the TT as a "Whole-Seller". They manufacture it and sell it directly to you with no handling fees. They sell unlimited amounts and have a STABLE market on buying and selling. Thus, EVERYTHING that can be purchased at a TT has a stable market value. Ie. A refiner worth 2.3 ped has exactly the same value as 230 rounds of ammo.

Now, that we have TT and tt/items value down, let us look at the TT value of a Fully repaired EP-21 Defender pistol. It is valued at 50 ped in the TT, but since that weapon is not available to buy in the TT, an important concept emerges: If u sell a fully repaired EP21 to the TT and get 50 ped, u just lost. The hard work u put into acquiring the gun was wasted because the "wholeseller"/tt just purchased the gun at its cheapest rate. You, as the holder of the gun are a "dealer" and should benefit from the transaction with a fee. So, ANY non-TT item is actually valued at higher then the TT says it is - as long as that item is usefull to some other participant out there.

This is an hypothetical example of a fair trade on a fully repaired EP21 pistol, valued at 50ped TT. The seller has determined that the EP21 is an average weapon with average rarity. She determines that her markup on such a gun is 150%. So, if the full repaired EP21 is 50 ped at the TT the seller must sell it at 75 (50X1.5=70) to earn his desired profit. Now, this part is HUGE... If by chance the pistol was 50% damaged and currently valued at 25 ped, and if the seller wanted 150% on the value of a EP21, the seller would use this SPECIFIC general equation:

(Full TT price) X (1.5 {150%}) - (repair cost)

So, 50 X 1.5 = 75 - 25 = 50 ped.

Some traders will sell items like this "TT+x" where "TT" is the CURRENT TT value, and X is the markup. It's ok to buy and sell items like this, but always remember to check the real equation to see what % markup you are really paying. For example: if a full repair laser was 10 ped, and the dealer wanted 150%, they can simply make that item a TT+5 item. This is much quicker and easier for the trader, but assumes that the buyer is understanding TT+. Although this example would represent a fair deal, without understanding how TT+ works, deals can frequently go wrong.

Value of items... Again, everthing that comes from the TT is usually not traded amongst players. Some exceptions are traders who may sell you ammo or bombs at your hunting or mining spot at a slight markup. The benifit to you is that you don't have to walk back to the TT. Everthing not sold in the TT will have a associated handlers fee, which will be a percentage ranging from 101% up. So, simple ecomonic principles determine value. Supply vs Demand... If something is extremly rare it could possibly be worth %400, if something is terribly common then it may only be worth %105. The term "rare" implies hundreds of variables. A rare gun may not mean it does 100 damage a shot, but possibly only 30, very quickly, with little weapon degredation. A "common" gun may be one that you have never seen, but is worthless due to poor efficiency or a really slow trigger.

Tip 1: Deal only considering Full TT value minus repair. Or TT+ if you are very familiar with the item.

Tip 2: If you find something selling for %250+, check around a bit and compare prices.

Tip 3: The market for items is always changing. A weapon worth 200 ped today may be worth 100 tomorrow (MK2 anyone?)

Tip 4: Never buy anything that doesn't fit into a trade window ;)

My hopes, are to stabalize the market to prevent acute abuse of newer players. Having one new player become disgruntled and not play is subracting his spending potential from the game, while only the scammer benefitted, to resume to do it again. The more honest spending we have in PE stands to grow the economy and benefit us all, and not the few.
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Trading Guide: Buying/Selling Transactions

itto