Economy strain? then you'll need a brain!

Shinyshark

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Primordia economy guide.

Fellow stock marketers, shop keepers and vendors, I am here to teach you about economy.
I’ve looked at your economy, Unstable and it’s because of the in-famous ‘price-dumpers’
Price-dumpers you say? What they are? What they do, I will explain that.

Price dumpers *1

Price dumpers have the habit of going on the Webshop and ruin everything, Making their prices lower from ‘0.01-1’ Shilling each. An example is the cobblestone, Harrison is selling cobblestone for 3 Shillings each when all of a sudden Killer decides to lower that price to 0,75 Shillings each. You thought that was it, Are you already grasping for the suicide pill? Well then I am going to offer you this gun because there’s more, Steve went down to 0.5 Shillings each and after that Inon went to 0.44 Shillings each until Fatalis decides to ‘top’ it all by lowering the price to 0.3 Shillings.

You know now what Price-dumpers do, But did you also notice that they lowered the cobblestone value with 90%? This is an abuse able thing. In the end one is going to sell cobblestone for 0.2 Shillings till the other fool comes with a lower price.

What’s so wrong about this?

In the end you will lose all the money you have, Wether you mined what you’re selling or bought it to sell it on for a lower price, no one will buy from you and it’s a wasted effort. Who is going to buy a pack of chocolate for €0,89 if they can buy it for €0,30 and it’s the same quality and taste? I can tell you, Only a fool would. We are supposed to support each other, Not lower our prices for another person! We’re here to supply our finest resources for a price that’s going to help us, not a price that could supply us with an unpeeled banana and a small bottle of river water.

What can we do about this?

You know what they say, Look before you leap. Check the prices of the item before you’re going to put a lower price. You can go lower like half a Shilling, But don’t lower it in a ridiculous amount to sabotage your fellow shop-keeper because that’s where it starts. In the end somone’s going to be smart, buy all you have and sell it for 4x the price, Have fun seeing your own materials getting sold for 40 Shillings instead of the 10 you had.

In the end you will not make a profit.

So stop hogging coins and sell it for a fair price, not too low or too high. Keep an eye on your fellow salesmen’s prices and co-operate for a huge profit, If you both get a bit less it’s better than to have everything for the same price you would if you were co-operating because you still lose more materials that are sold.


Title idea : Mullaccm.
 

Inon

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To be honest few people are going to pay 3 shillings for cobblestone, but I agree 0.3 is a ridiculous price. To show how ridiculous it is I've just bought about 1492 for 0.35 shillings each which will either turn a re-sale profit or cut my mining effort down massively.

edit - Also 945 sand for 0.2 each. Buying these people out is so satisfying

HAVE YOUR SHILLINGS, RESOURCES ARE MORE USEFUL
 
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BurnyBurn

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On a related note, what happened to Topians? Why are we suddenly using Shillings? D:

@mullaccm
This guy knows how to do it ;)

He buys cheap stuff and resells it for double the price.
 

IQD

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To be honest few people are going to pay 3 shillings for cobblestone, but I agree 0.3 is a ridiculous price. To show how ridiculous it is I've just bought about 1492 for 0.35 shillings each which will either turn a re-sale profit or cut my mining effort down massively.

edit - Also 945 sand for 0.2 each. Buying these people out is so satisfying

HAVE YOUR SHILLINGS, RESOURCES ARE MORE USEFUL
Selling my sand for 1.99 shillings apiece is not going to get any profit.
 

Inon

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Selling my sand for 1.99 shillings apiece is not going to get any profit.
If I sell even one block above 0.2 shillings I make a profit. If I don't I save myself time mining. Time which could be spent gaining exp, making money, building and recreation :D
 

IQD

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If I sell even one block above 0.2 shillings I make a profit. If I don't I save myself time mining. Time which could be spent gaining exp, making money, building and recreation :D
You missed my point, which was that nobody's going to buy sand for 2 full shillings apiece, 10 times more expensive than what I was selling it for.
 

Mmarz11

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This is reminding me of my Economics class. People start selling a good at a market price that they get a decent amount of "profit". Then with competition between sellers, the market price (the price at which a good is sold) would decrease towards a "natural price" (the cost of producing a good; in this case, time on the most part). But what is this "natural price"? How exactly do we calculate the cost of making a good if it costs time? How do you convert time into Shillings? I can only see the price staying low. Either more people will enter the competition between sellers and make it keep going lower or it would get higher if the person at the cheapest runs out of stock. They run out of stock and now the new market price is what? .01 Shilling more? In all honesty, it's quite ridiculous to me.

Therefore, I propose that we change how goods are bought. Instead of having it a competition of sellers which results in the market price getting lower and lower, how about a competition between buyers? Sellers would provide the goods and set a "natural price" for their product. Then for some amount of time, buyers would be able to bid for the good and would cause the price to increase.

Summary:
Currently:
-Buyers want the lowest possible price
-Sellers know this and go lower than their predecessor
-Price drops as a result

Proposal:
-Buyers want the lowest possible price
-Sellers set a "natural price" for their good
-Buyers compete with each other for the good
-Price rises as a result

Thoughts? Comments? Suggestions?

In the end somone’s going to be smart, buy all you have and sell it for 4x the price, Have fun seeing your own materials getting sold for 40 Shillings instead of the 10 you had.
Just want to comment on this portion. What if the person selling it for 10 Shillings was able to easily and quickly keep their quantity supplied at a suitable level? The "smart" person is buying it for 10 Shillings and trying to sell for 40 Shillings but what if the person is able to keep a suitable quantity supplied? Then they will just keep selling it for 10 Shillings and keep getting people buying as it's the cheapest. Why should they even touch that 40 Shilling good if they can get it for a quarter of the price?
 

IQD

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I'd highly recommend putting in a forced minimum sell price that's kept a bit high to get money circulating again, preferably when the plugin for mob money is put in. I know that that shouldn't have to be done, but at the alarming rate prices are dropping... eeeyeah.
 

Shinyshark

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This is reminding me of my Economics class. People start selling a good at a market price that they get a decent amount of "profit". Then with competition between sellers, the market price (the price at which a good is sold) would decrease towards a "natural price" (the cost of producing a good; in this case, time on the most part). But what is this "natural price"? How exactly do we calculate the cost of making a good if it costs time? How do you convert time into Shillings? I can only see the price staying low. Either more

Just want to comment on this portion. What if the person selling it for 10 Shillings was able to easily and quickly keep their quantity supplied at a suitable level? The "smart" person is buying it for 10 Shillings and trying to sell for 40 Shillings but what if the person is able to keep a suitable quantity supplied? Then they will just keep selling it for 10 Shillings and keep getting people buying as it's the cheapest. Why should they even touch that 40 Shilling good if they can get it for a quarter of the price?
If he was able to get that real easily, Then everyone else would also be able to get it pretty easily.
 

torty

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Shiny,

Thanks for this, people will perhaps learn that putting people out of business is a sort of abuse. People who put their goods on cheapest (mainly last) will get their goods sold the quickest, not only because they are most recent, but because it is far cheaper. This will happen to the extent that people will earn no money and that people who put their goods on first will come out last. Personally I don't use the shop system, but I agree it can be flawed. But business is business, and people can abuse systems without even realising. Hopefully people will learn :).
 

Mmarz11

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If he was able to get that real easily, Then everyone else would also be able to get it pretty easily.
I'll try to make it clearer. Lets say the seller at 10S is selling 10 and the seller at 40S is selling 0 at the start (or whatever). The 40S buyer then buys the 10S's goods and now the 10S is out and the 40S has 10. If the 40S is the lowest price, then people would buy from him unless of course there were substitutes for the good (For example, a substitute for soup could be bread). If the 10S seller is able to get more of the good quickly then they can continue selling at 10S as if nothing happened. Then what? The 40S seller keeps trying to buy out the 10S seller? The 40S seller will just continue to lose money unless the 10S seller just stops supplying the good and there is no one else who is selling for less than 40S.

Do you get what I'm saying now?
 

Mmarz11

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He meant the items being sold. If something is easy to acquire (get) for one person, it can be easy for everyone else.
Well for me, it's easy to make bread. Is it easy for everyone else? Not really. There is also the fact that people are lazy ;) Why should they work to get something if there is someone selling it for a price (and they don't want to do the work to get it)?
 

Shinyshark

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Well for me, it's easy to make bread. Is it easy for everyone else? Not really. There is also the fact that people are lazy ;) Why should they work to get something if there is someone selling it for a price (and they don't want to do the work to get it)?
If people are lazy it's their own problem, If you can make bread easily in this server everyone can.
If they don't want to work to sell their stuff and there's only one person selling something than there's no problem.
 

mullaccm

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I buy items in bulk, until there are none left, then i sell them all in seperate auctions with fewer amounts in more expensive auctions to get people to think that they are buying cheaper when they are actually still buying from me +++profit!
It's basically what supermarket brands such as tesco and Asda do with ther "own brand cereal" they actually buy it from companys like kellogs.
 

Razinao

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Thing is, when someone puts out 2000 cobblestone for 0.2 shillings, buying it all out to raise the price costs 500 shillings. Then, you resell them at 0.3 shillings.

You therefore make 250 shillings profit. Especially if someone buys them out to raise the price moreso.

No one seems to be doing that.
 
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BurnyBurn

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Thing is, when someone puts out 2000 cobblestone for 0.2 shillings, buying it all out to raise the price costs 500 shillings. Then, you resell them at 0.3 shillings.

You therefore make 250 shillings profit. Especially if someone buys them out to raise the price moreso.

No one seems to be doing that.
Mullaccm ;3

The thing is, certain items don't seem to be selling well, and I wouldn't want to take the risk of buying something for 500 if it's not going to be bought in the near future. :C
 

Defiant_Blob

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This is what Blkshroud did when we first had an open shop with name your own prices via server. We'd compete prices, and he'd buy us all out and sell again. That's how he got so rich.

Either way, I can get all my stuff myself, especially since I'm Crafter and I need the Exp anyways.