Subject:
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Re: part pricing theory and practice
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Newsgroups:
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lugnet.market.theory
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Date:
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Fri, 30 Mar 2001 19:12:22 GMT
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Viewed:
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512 times
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In lugnet.market.theory, Cary Clark writes:
> I was thinking about buying some white plates from Brickbay, and came up
> with this comparison
..{snip,snip}..
> Which brings me to my theory question: What is setting the price on Brickbay?
For a seller on Brickbay, mechanisms exist that track all previous sales and
provide pricing information. When listing a specific part of a particular
color, data is available that shows how many times that element has been sold
(not dependent upon quantity, however), what its lowest selling price has been,
the highest price, and the mean average. Sellers can look at this data and set
their own price using this information. Here is an example: [1]
White Plate, 2 x 4 (assuming NEW condition) [2]
Nubmer of Times Sold Lowest $ Average $ Highest $
74 .02 .13 .30
Using this example, I believe that most sellers tend to look at the average and
highest prices and then would decide on a price of .15 or more.
The thinking would be that with 74 sales, demand is good for this item, so a
price near or above average makes good {business} sense. Buyers seem to be
paying that price, so why not go for the most one can get?
Since Brickbay has an excellent search feature, a search for a particular
element can be done to see what the current supply is. By checking to see how
many sellers have it for sale and their asking prices, actual demand can be
somewhat crudely determined. What I mean is that if numerous people have the
part and they all have high asking prices, is this why so much is available?
Look at this search result -->
http://www.brickbay.com/search.asp?t=72&c=5&i=3788&p=y
11 people have this item for sale at a price hovering around .15 with one
seller asking 50 cents. 15 cents is the Brickbay average with 25 cents as the
maximum, it has been sold 33 times.
The 2x4 Red mudguard is a part that I figure is in everybody's collection and
most of us have more than we can use. If I were to list this piece for sale
today with intent of selling it fast, I would price it around .05 and hope they
sell. I consider it a piece that does not sell at any price (there are other
pieces that would have made even better examples).
^^^^^^^^^^
I fear that the pricing pattern seems to be just the opposite of my own. It
appears to me that the majority of people listing parts today look at the sales
history data and go for the average price or higher. This trend will push the
averages higher as more and more of these items eventually get sold. A vicious
cycle.?
^^^^^^^^^^
Note: I also wonder where many of the maximum prices originated but theorize
that those prices were realized in the very first days of Brickbay when supply
was limited and the rush to buy caused buyers to pay {too} much.
__Kevin Salm__
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Message has 4 Replies:
 | | Re: part pricing theory and practice
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| ...oops, footnotes got dropped during editing.... [1] a totally fictitious, fabricated example--Did not check Brickbay for this information. [2] this assumption has been the cause for some discussion on Lugnet and Brickbay forum lately. __Kevin (...) (24 years ago, 30-Mar-01, to lugnet.market.theory)
| | | Re: part pricing theory and practice
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| (...) I don't think so. If the prices gets driven to high (and then also the number of available parts), somebody are bound to see an opportunety to sell a lot of parts if they lower their own prices. As a seller myself I try to get a good price, (...) (24 years ago, 30-Mar-01, to lugnet.market.theory)
| | | Re: part pricing theory and practice
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| In lugnet.market.theory, Kevin Salm writes: <snip> (...) Unless we had an aging mechanism, I doubt that there is much choice. I would love to see a graph of the last 10 sales (price vs qty line graph) for each item. That would give me a much better (...) (24 years ago, 30-Mar-01, to lugnet.market.theory)
| | | Re: part pricing theory and practice
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| (...) This tells you nothing about current demand vs supply. All it tells you is that once there was sufficient demand to sell at those prices. Without knowing the specifics of the supply and the demand at the point of the sale, you're "spitting in (...) (24 years ago, 30-Mar-01, to lugnet.market.theory)
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Message is in Reply To:
| | part pricing theory and practice
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| I was thinking about buying some white plates from Brickbay, and came up with this comparison (viewing in a monospaced font is a good idea): Brickbay Baylit S@H #5320 Lo Avg Hi 1x1 10 12 17 20 6 x8=48 1x2 8 10 16 15 5 x8=40 1x3 8 12 20 12 5 x4=20 (...) (24 years ago, 30-Mar-01, to lugnet.market.theory)
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