Post by usamaz on Mar 22, 2021 11:51:28 GMT
What's in it?
This thread is all about the pricing of all the Research Products and Patent Values (Except Aerospace), Are they right or are they undervalued or overvalued?
Introduction
Research!! A product so versatile that everyone needs it. Doesn't matters if you are just starting out or a golden certificate holder. From Agriculture to Aerospace, you are still going to buy them and why wouldn't you? It not only gives you a chance to produce higher quality products but also comes it with its own unique perks. Join me as we dive deep into the research industry and find out what they are truly worth both as a buyer and a seller.
Part 1
We all know about the patents value we can find in the research guide. In this section we will try to find an estimate value of every single research based on the predefined patents value and the compare it with the current prices of researches.
Section A contains all the starting details, The current patents value and the exchange price for that research.
Section B is the adjusted value of the patents based on the current market price, this has been calculated for each conversion rates.
Section C is the adjusted value of the research based on the current patents value, this too have been calculated for each conversion rates.
Section D shows the price difference between the adjusted price of the research ( from Section C ) and current exchange price.
Part 2
This part contains a different approach of calculating the price of a product i.e. using a markup percentage, a simple formula is as follows ( Profit Per Unit / COGS ) * 100. Ideally a good markup percentage also called keystone is 50% ( assuming there's a good and consistent demand for the product, which is true in this case).In simpler terms markup shows how much you are making for every dollar invested.
Note : Markup % is different from Margin %. Margin Percentage is calculated using the formula ( Profit Per Unit / Revenue ) * 100.Example
You produce an item and it costs you $50 and later sell it at $75 then your,
Markup = (25/50)*100 = 50%
Margin = (25/75)*100 = 33%
A good profitable business always has a Markup % significantly higher than the Margin %.
Section E contains markup percentages based on a 20% admin cost and current market prices.
Section F shows the markups percentages if we use the adjusted price ( from Section C ), If we take a closer look we notice two things :
1- Under 1/8 some of the markups are still below 50% even with the readjusted price ( Sellers are not getting the right worth of their products )
2- Under the 1/6 conversion rates some of the markups has gone all the way up to 100%. ( Buyers will be paying premium ).
Bottom Line, if we try to adjust the price based on current patents value we get very contrasting results, while one favors the sellers heavily the other crushes them entirely.
What's the solution?
As a Mad Titan whilst demonstrating his knife skills once said " Perfectly balanced, as all things should be ". The solution is to strive for a balance. First we adjust the price based on a good markup and then we calculate a new value for the patents from those adjusted value.
Section G contains the prices of each research product if we use a 45% markup.
Section H contains the prices of each research product if use a 55% markup.
Section I establishes a true price range for each Research Product ( 45% markup - 55% markup )
Part 3
Now that we have a true price range for each research product we can establish the new value for the patents.
Section J shows what the patents value should be if use the 45% markup, it calculates three different conversion rates and then shows an average of the three. This will be the bottom of the range.
Section K shows what the patents value should be if use the 50% markup, it also calculates three different conversion rates and then shows an average of the three. This will be the middle of the range.
Section L shows what the patents value should be if use the 55% markup, it also calculates three different conversion rates and then shows an average of the three. This will be the top of the range.
Section M finally shows the true value of patents if the sellers sell the research at ideal markup %.
PS : Some of the sections can use a better explanation, i will give it a touch up as we progress.
This thread is all about the pricing of all the Research Products and Patent Values (Except Aerospace), Are they right or are they undervalued or overvalued?
Introduction
Research!! A product so versatile that everyone needs it. Doesn't matters if you are just starting out or a golden certificate holder. From Agriculture to Aerospace, you are still going to buy them and why wouldn't you? It not only gives you a chance to produce higher quality products but also comes it with its own unique perks. Join me as we dive deep into the research industry and find out what they are truly worth both as a buyer and a seller.
Part 1
We all know about the patents value we can find in the research guide. In this section we will try to find an estimate value of every single research based on the predefined patents value and the compare it with the current prices of researches.
Section A contains all the starting details, The current patents value and the exchange price for that research.
Section B is the adjusted value of the patents based on the current market price, this has been calculated for each conversion rates.
Section C is the adjusted value of the research based on the current patents value, this too have been calculated for each conversion rates.
Section D shows the price difference between the adjusted price of the research ( from Section C ) and current exchange price.
Part 2
This part contains a different approach of calculating the price of a product i.e. using a markup percentage, a simple formula is as follows ( Profit Per Unit / COGS ) * 100. Ideally a good markup percentage also called keystone is 50% ( assuming there's a good and consistent demand for the product, which is true in this case).In simpler terms markup shows how much you are making for every dollar invested.
Note : Markup % is different from Margin %. Margin Percentage is calculated using the formula ( Profit Per Unit / Revenue ) * 100.Example
You produce an item and it costs you $50 and later sell it at $75 then your,
Markup = (25/50)*100 = 50%
Margin = (25/75)*100 = 33%
A good profitable business always has a Markup % significantly higher than the Margin %.
Section E contains markup percentages based on a 20% admin cost and current market prices.
Section F shows the markups percentages if we use the adjusted price ( from Section C ), If we take a closer look we notice two things :
1- Under 1/8 some of the markups are still below 50% even with the readjusted price ( Sellers are not getting the right worth of their products )
2- Under the 1/6 conversion rates some of the markups has gone all the way up to 100%. ( Buyers will be paying premium ).
Bottom Line, if we try to adjust the price based on current patents value we get very contrasting results, while one favors the sellers heavily the other crushes them entirely.
What's the solution?
As a Mad Titan whilst demonstrating his knife skills once said " Perfectly balanced, as all things should be ". The solution is to strive for a balance. First we adjust the price based on a good markup and then we calculate a new value for the patents from those adjusted value.
Section G contains the prices of each research product if we use a 45% markup.
Section H contains the prices of each research product if use a 55% markup.
Section I establishes a true price range for each Research Product ( 45% markup - 55% markup )
Part 3
Now that we have a true price range for each research product we can establish the new value for the patents.
Section J shows what the patents value should be if use the 45% markup, it calculates three different conversion rates and then shows an average of the three. This will be the bottom of the range.
Section K shows what the patents value should be if use the 50% markup, it also calculates three different conversion rates and then shows an average of the three. This will be the middle of the range.
Section L shows what the patents value should be if use the 55% markup, it also calculates three different conversion rates and then shows an average of the three. This will be the top of the range.
Section M finally shows the true value of patents if the sellers sell the research at ideal markup %.
PS : Some of the sections can use a better explanation, i will give it a touch up as we progress.