[wompastompa]

well simply put....SUPPLY AND DEMAND!!!


this is a guide, so I will have to go against my will to abandon the thread at the first line.

the most important thing is to understand that a virtual market works nearly the same as a real world market.


SUPPLY:when people are constanly selling a certain item or material, prices tend to go down, without demand, the prices would drastically plumit

DEMAND:when everyone is furiously scavenging for any store selling a specific
item, prices tend to go up, without SUPPLY prices would drastically increase


now that you know what supply and demand are, its time to understand what they mean together.

supply and demand need each other to exist.
think about it, when noone needs wood, demand is at zero, but supply would soon catch up and be close(emphasis on close) to zero.
an example in fiesta is the master commanders badge, and the iron badge, its useless and is not in any demand, although these items exist, they usually dont last long since they would be sold to NPCs which are the only way to make any profit out of the badges.
But some people plan on holding the badges until demand for them increases, but this is a strategy that takes time in order for it to be successful.





(continued)One variable that needs to be accounted for is that virtual markets change more dramatically than rea world ones, since its easier to take risks on something thats not real. This means that you buy and sell stuff on an unstable market. heres a Fiesta example:enhancement stones were less used for the most part in earlier times of the games beta testing, and prices for elrue[1] was easily 50c and sometimes dropped to as low as 30c, because of the very low profit that elrue[1] produced, players had to be very strict on the prices of their dusts because 1 or 2c over their mark and they would lose money instead of making profit.

This goes for lix[1], at about a year ago this stone was available for 200c and lower, but when people started wanting to make more or enhance more, the players who supplied the dust decided to increase their prices making it harder for the stoners(hehe) to make profit without raising their prices.....and now we have lix[1] for as high as 1s now. According to the law(supply and demand) if materials become more freely available, the players who provide the mats will be in a more competetive market which would result in a drop in prices.
If I am not mistaken, Hraevsleg mentioned the opening of a world market and this would make materials easier to find thus a drop in prices and a drop in the product itself






(continued)(a response)The real world crisis isn't really that hard to understand if your willing to watch several political debates and analysis. when did people really start to notice? Its a matter of class and occupation, if your working on wall street then you'd better know in advanced.

If your in the working class, then you would be less likely to feel much of a difference in the beginings of the recession, this is because it takes time for major bank and buisiness failures to affect someone working in Target. this is simply because many of Target's employees never apply for a loan or own a house. When they announced the failure of AIG and Freddy Mac, most buisinesses(?) were unaffected in the beggining. Now its about a month since the announcement and now is the time where buisinesses survive the onslaught or call it quits and file bankruptcy or forclose...Macys and several other stores have decided that its best to take the losses now before they increase later.

Another interesting thing that happens when we hit an economic problem is that those bargain marts and 99cent stores and other discount stores start to see an increase in profits. This is caused because the nation's citizens become weary of overspending and decide to cut their disposable income, a logical thing to do. Now on to the major reasons our nation is having these problems.....First, you have to understand that most major buisinesses were built on credit and it was allowed because of the free market system we have(in America), this was contributing to economic boom, but eventually when profits weren't high enough to sustain the companies, they needed to look for a loan from other firms, specifically banks. But bank were very leniant with their loan policies and got into a mess of their own, leaving the struggling buisiness to crash. This cycle had to happen several times before we would call it a recesssion and it has. Secondly, we need to understand how the housing market went to trash. During the late 80's up until a few years ago, the real estate buisiness was in a dramatic increase, building houses faster and faster(this real estate boom happened in the 50's, and is simillar to what is happening today). Demand for housing was up so, constructors had to accomodate it, supplying a surplus of houses.

The real estate angents were overwhelmed with the amount of buisiness they had coming in and took every chance they got at selling. Eventually demand began to dwindle and the real estate agents had to up their ante' ....instead of reducing prices, which would have been a lot better, they made it very easy to qualify for a home, providing families false hope, providing aproval after aproval of house loans that they could'nt possibly afford. After the buyers became aware of their situation, they had to forclose their home. The banks which lent the money for the purchase was left with a house instead of the money they needed, the banks began to realize they needed money, and needed it now. So instead of selling the house for a profit they sold them into auction for quick money, but whith a great loss. These rotten loans eventually led to the collapse of several major banks.





(continued)In Fiesta you can decide the price you want to sell, with no restrictions at all, like someone has allready said,"if their willing to buy it at that price, then its worth that much." When you sell something, your basically thinking about 2 things:How much profit will I get? and How competetive is my price? Certain factors contribute to your decision of which of the 2 is more important. In other words, sometimes you'd like to sell your stuff for minimum profit very fast so you can get on with whatever you want to do. Selling for minimum profit is very helpful when you want to increase your production skills, selling, buying, selling and gaining a little money in the process. While you may not get a lot out of it, your preparing yourself to earn more money since your increasing your production skills. And as everyone knows, the further you go down the production tiers, the more profit that will be available.

If you plan to sell something for high amounts of profit at a longer interval of time, your being very efficient with your money but not with your time. Something you need to take into consideration when selling for high profit is,"is money worth more than the time it would take to sell this stuff?" To some people who go AFK for days at a time, it is very much necessary to overprice some things. This is done to reduce the chances of selling out before you return, as a store that us up for 2 days with nothing to sell is a waste of time.




EDIT:should I continue????......please respond