The Mech Touch novel Chapter 3780

Chapter 3780 - Disgusting Market Behavior

Ves gained a few insights as he studied the most generic mid-range spaceborn Xaxu Specter variant.

It was not without reason that it happened to be the most popular variant of its line according to the public sales figures.

Calabast provided Ves with her own understanding of this mech model. "No matter the version, the Xaxu Specters are designed to be a one-stop solution for any mech force that is looking to supplement their units with a communication mech and an ECM mech. The variant you are studying right now is an all-rounder that might not perform a specific function as well as the other variants, but can always be counted upon to do a good job in all of the expected roles."

In other words, a mech force could never go wrong with buying a Xaxu Specter. The performance of the balanced variants were not quite industry leading but came close enough that the shortcomings could be forgiven.

Any leader could plug them into any given mech company and be confident that the troops could count on the additional services.

Picky customers did not have to settle for the default choices. If they wanted a Xaxu Specter that performed better, they could opt to buy the premium or the premier variants that were targeted towards Tiamon Dynamics' more discerning customer base.

"These variants are a big reason why the Xaxu Specter line is so dominant in the market for ECM mechs." Ves figured out. "They are directly taking away market share that could have been claimed by ECM mech models that excel in different areas!"

There were plenty of mech designers who put ECM mech models in their product catalogs.

That didn't mean they sold well.

Marketing, reputation, access, pricing and many other factors determined whether they became successful.

The annoying part about the Xaxu Specter line was that it covered so many different niches that alternative mech models had to fight an uphill battle in order to get noticed!

Ves glanced up and stared into Calabast's eyes.

It wasn't a coincidence that she had brought out the Xaxu Specters as an example. She had directly introduced him to his biggest and most formidable competitor.

If he still went through with his intention to design a commercial ECM mech, then he could not get around this massive market behemoth!

Although Tiamon Dynamics market presence wasn't as strong in the other middle zones, diverting his business to those places was no good solution.

The dominant market players based in the other zones weren't complacent. Just like Master Parian Hao, they also published their own fantastic works and carved out a place in their respective regions.

No matter where the LMC sold his products, they would always have to overcome a mech similar to the Xaxu Specter!

Given this circumstance, Ves might as well measure his work against this mainstream mech model.

When he pulled up the spec sheets and examined their performance, his confidence soon deflated to an extent.

"Tiamon Dynamics is too entrenched in the local economy." Ves remarked. "The mech company's production costs are lower than many lesser market players. It has to be part of a larger alliance or interest group. Otherwise, I can hardly imagine how it is able to sell mechs that perform so well at rates that are highly affordable."

Even if Masters such as Parian Hao adhered to the industry standard of pricing their products fairly, the problem was that the current mech market was anything but normal in the Red Ocean.

The constrained supply of resources meant that many companies had to buy them at inflated prices, if they could obtain the necessary materials at all. This in turn meant that they could not earn a profit unless they priced their mechs 30 percent, 40 percent or even 100 percent higher than normal!

This meant that companies like Tiamon Dynamics that had developed good relationships with resource suppliers could earn a profit by selling superior mech models at disgustingly cheap prices!

The best part about it was that the most successful mech companies didn't break the unwritten rules of the mech industry while they were at it! They weren't selling their products at a loss so the MTA could not easily interfere with their market behavior.

"This isn't fair!"

Ves' face grew ugly as he figured out the actual strategies of the biggest players in the mech market.

"The Red Ocean's mech market has only been established for a few years. The regional mech markets in the newer zones are even younger. This means that every brand has to start from scratch and that no mech designer or mech line has achieved an unshakeable status in any of the markets as of yet. As long as these players move quickly to become as dominant as possible in the early years, they can successfully translate their early leads into near-permanent monopolies or oligopolies!"

It was a simple scheme, but Ves could see how it could ensure that mech designers such as Master Hao maintained an enduring advantage in their chosen markets!

In fact, Tiamon Dynamics was already halfway towards becoming the overlord when it came to selling the definitive ECM mechs in the Krakatoa Middle Zone.

While the sales volumes weren't that impressive at the moment, all of this would certainly change once the region became more developed and when a lot more colonies rose up. The increase in population base and industrial activity would definitely spark a lot more conflict, the demand for ECM mechs would certainly skyrocket!

Which model would these new customers proceed to buy? The chances were great that they would look at what sold best in their particular region and proceed to follow the crowd!

The majority couldn't be wrong. If the Xaxu Specter line happened to be the highest-selling ECM mech in Krakatoa, then they would definitely be good purchases!

In order to make sure that companies such as Tiamon Dynamics solidified its dominant market position, they did not hesitate to play dirty in order to grab as much market share as possible!

They did not even let off the lower end of the market where Apprentices and Journeymen ordinarily provided their services!

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