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Quit devaluing Ruz!#@$%^$^&%


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44 replies to this topic

#1 Swsoulja

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Posted 18 March 2005 - 09:05 AM

Everyone should maintain the price for ru and not try to compete with other people, people will always need ru, theres no reason to drop your price to sell yours faster than the next person. If you drop your price you'll be losing out on gold while the person buying them with his 30 million gold will come out on top! Ru prices should stay AT LEAST *shudder* 150k.

#2 Perish

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Posted 18 March 2005 - 09:40 AM

Everyone should maintain the price for ru and not try to compete with other people, people will always need ru, theres no reason to drop your price to sell yours faster than the next person.



Um...economics. Familiar with it?

#3 Swsoulja

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Posted 18 March 2005 - 12:43 PM

If everyone starts dropping their prices to compete with everbody else, rus will just be worth 500 gold each soon enough like some of the items in game now

#4 Nemori

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Posted 18 March 2005 - 01:46 PM

Your idea for everyone to maintain high prices is kind of like the cartel scheme, try to get all the other producers to artificially keep their prices higher. The problem is, RUs have an indefinite source. The more people that are buying them(especially to sell to others) the lower the price is going to drop. Expecting everyone to try to maintain 150k each when they know they can get a fast and easy sell for 145k or something, is just ignorance. Find something whose supply is not endless, like rare OS items, and start dealing in them. And yes, as someone so eloquently said above, economics, duh.

#5 Vswan

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Posted 20 March 2005 - 10:47 AM

RU's are only worth what someone is willing to pay for them , I mean serious RU's only have a tangible worth before they enter the game after that it's what ever you can get for them..... I wonder If the New gold changes which makes gold harder to come by will help force RU's value closer to 90k ..... that would be entertainning.

#6 Scrooge

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Posted 20 March 2005 - 01:21 PM

If items are devalued and ru are devalued, what is the problem?

#7 Yien

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Posted 20 March 2005 - 01:51 PM

(From Swsoulja):
rus will just be worth 500 gold each soon enough like some of the items in game now




I cant wait, then i wont have to spend massive gold because i cant donate.

#8 Dupre

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Posted 21 March 2005 - 03:46 AM

If the moron wants to devalue it then let them. They will be losing money

#9 Ryechaser

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Posted 21 March 2005 - 04:05 AM

Items devaluate till the market loses saturation. Then as demand is no longer being met, the value rises, naturally finding a quasi-balance.

If a lot of people donate, the price of RU will slowly fall, as long as people know there are multiple RU dealers with RU at any given time. When this happens, less people will see donating for RU as a good idea and prices will rise. Later, more people will donate than before as the price has reached a nice level. This cycle will usually continue unless something screws with the market.

#10 Biran

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Posted 21 March 2005 - 08:53 PM

A couple of you said "economics". Well then that goes with supply and demand. The more the supply the less the demand is for them, so people are forced to lower their prices if they want to sell. Which wouldn't happen if.

1. People kept a steady price on them say 160k per.

2. As Sws said: didn't compete with other sellers for a few extra sold RUs.

3. If RUs weren't the main stream form of currency in the game like they are now due to.. People selling lower to sell more (See #2).

If people started fixing the price of the RUs at 160k per or higher but not exceeding 180k per, then the price of them would have no choice but to be sat back up high on average. Sooner or later all the people that bought all the RUs at 150k or lower will run out and will come looking for more. But if the price is at a steady 160k they will pay what they have to just to get them.

Think of RUs like a drug (cause they kinda are). People who can't afford real $$$ for them, will pay game gold for them. No matter the price if they want them they will buy them. The only way the price drops is player A wanting to out sell Player B by a few measly RUs. When if he just stayed at a steady price he could make more and no one would have to compete for more sales cause the price would be locked.

I mean the people that do spend real cash on them should really think about just locking the price at something higher then 150k per RU. Cause they kinda are getting ripped off for their dollar at that price. Ask nicias he converted MM gold into RL money standards (he has alot of time on his hands). 150k isn't worth 1 dollar. When RUs first came out it was calculated that 180k was a fair price per RU. But people's obsession to out sell each other dropped the market on them.

So economics, is the reason they are 150k per, but it could also be the reason they could be locked at 160k or higher. It's a two way street there and if people just woke up and realized and were willing to wait 2-3 months before they sold another RU they could eaisly set the price higher then 150k. But greed conquers all I guess.

-Biran

#11 Alondra

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Posted 21 March 2005 - 09:39 PM

People have been selling them for 100-130k each since the time 180k per RU was known to be the average price.

#12 Colin

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Posted 21 March 2005 - 11:08 PM

lets make the world a utopia!!!

#13 Biran

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Posted 21 March 2005 - 11:30 PM

(From Alondra):
People have been selling them for 100-130k each since the time 180k per RU was known to be the average price.



That doesn't make them people smart or right. :naughty:

It was refreshing to see RUs put in. But not so refreshing to see them gradually becomming worthless more and more. But you can't make everyone agree with your views, and it's a miracle if even one person (specially on this game) listens to your view.

Soon the RUs will be like 50k a peice and then Vassago will have to raise the price per RU, cause everyone will have an abudant supply so people will stop buying so many. But there are still server costs and bills to pay so Vassago will be forced to raise the cost of RUs, and everyone will bitch. Why did you raise it? You're just a profit gluton, they will chant. When really the blame will fall square on their shoulders. If people want to sell RUs at a low price that's their business and they are entitled to do so. But like I said before, it's not smart for the "economy" of the game or future Contribution "rewards".

That's a fact. Cheaper they become, eaiser they are obtained, higher the price on them will have to be. But sell away. Sell sell sell.

-Biran

#14 Colin

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Posted 21 March 2005 - 11:36 PM

Soon the RUs will be like 50k a peice and then Vassago will have to raise the price per RU, cause everyone will have an abudant supply so people will stop buying so many. But there are still server costs and bills to pay so Vassago will be forced to raise the cost of RUs, and everyone will bitch.



why would vass care. same number of RU is being donated for, hell maybe even more since lot of people donate only to sell and make gold, so if they need 10 mill gold, they might have to donate for 2x as much as they used to.

#15 Syphon

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Posted 22 March 2005 - 12:25 AM

uhh, i've bought RU for like 80k a piece before and vass won't midn people lowering the price of RU because it means people who sell RU for gold will donate more to get the same amount of gold.

#16 Biran

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Posted 22 March 2005 - 07:39 AM

(From Syphon):
uhh, i've bought RU for like 80k a piece before and vass won't midn people lowering the price of RU because it means people who sell RU for gold will donate more to get the same amount of gold.



You and colin both seem to miss the bigger picture. The lower the price, the more people get. The more people get the more the game becomes loaded with them. The more people have the less they need. Over time the market is flooded with RUs and people can't sell the ones they want for anything that resembles a profit.

In thus they stop donating to get the RUs cause they (like everyone else) have an over abundance of them. Less and less donations per month = less money to pay for the server. When people do donate it will be in smaller amounts as they already have alot of RUs or it will be cheaper for them to buy them with game gold instead of RL money. Less money for game costs means higher price per RU.

This isn't rocket science guys. This type of poo may not happen like tomarrow. Or even in a month. But give it time and the steadily decreasing of the RU value and it will happen. May be a year from one or maybe 2. But unless RUs get a locked price on them, in gold. I foresee ALOT of people complaining when something like a rise in RU prices happens.

It's business economics. Supply and demand. Larger the supply, the less the demand. The less the deman the less people buy, company makes less money..... Well you get the idea.

-Biran

#17 Unbeliever

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Posted 22 March 2005 - 09:30 AM

Larger the supply, the less the demand



This is the worst economic generalization I've ever heard.

As the price goes down, shown here, more people will actually demand RU, while the supply goes down (due to increased demand). So we will be experiencing this expansion for a while, until the supply of RU dwindles to a point where people can find a substitute or until the average cost for a RU raises. The problem with our system is everyone's "Wealth" varies greatly. For the most part the average wealth of people allows them to buy RU at it's original costs, which now allows them to buy 2x RU for half the costs. For the longest while there was a massive surplus because everyone had their DD converted to RU. I think when the system first started out, I had 400 some odd RU I didn't even know I was warranted.

Posted Image

*assume the RU now graph starts at 0,0*

#18 Unbeliever

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Posted 22 March 2005 - 09:33 AM

Actually, if you want to get technical, there is probably a shift to the right of the demand curve due to the lack of substitutes now for RU. Anyway, you catch the drift.

#19 Biran

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Posted 22 March 2005 - 09:58 AM

Or people buy all the RUs they need and get all the donation items they need for a low price in gold and then no longer need RUs. So buyers slowly start to disappear and the sellers start getting stuck with more and more RUs. In thus they stop buying them with cash cause they are dirt cheap in gold.

You graph was amusing, but surley someone sees where I am going with this. Like I said it's not something that will happen over night but it certainly will happen if everyone gets mass RUs at low prices. The well WILL run dry, if the price keeps dropping like it is now. *shrugs*

-Biran

#20 Unbeliever

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Posted 22 March 2005 - 10:07 AM

There is an infinite supply of RU, what well will run dry?

Even if X person runs out of RU, Y person will always have some to sell.

#21 Tejon

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Posted 22 March 2005 - 10:15 AM

I hate to say it but *shudder* Biran has a point. The demand curve will pivot downward over time as well because of the longevity of some donation items. It doesnt keep shifting downward because of consumeables such as restring tokens and expiring items, and because of new players coming into the game.

Also, your supply curve is the unconstrained one, that doesn't account for collusion. Collusion 'isnt allowed' in real life but there's no law against it in Alyria. As a potential RU supplier and not much of a consumer, I'm all for a cartel. If anyone would like to band together, contact me in game. The more people we have, the more market power we have, and the higher our profits. There's a reason this is illegal in real life, and I'm more than greedy enough to take advantage of it here.

Tejon

#22 Unbeliever

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Posted 22 March 2005 - 01:01 PM

There will always be people making alts, and always new players who need the donation items. Longevity is infinite.

#23 Klaus

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Posted 22 March 2005 - 01:36 PM

People have been selling them for 100-130k each since the time 180k per RU was known to be the average price.



As far as I know that was just one person. That same person is still sitebanned/frozen for paypal fraud, yes? This is hardly a substantial claim.

#24 Asorewen

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Posted 22 March 2005 - 02:13 PM

Hah. If you start a cartel, I'll gather some people and start an anti-cartel. Essentially, refusing to buy RU's if they are above a certain price.

#25 Unbeliever

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Posted 22 March 2005 - 03:01 PM

It's impossible to form a cartel on this game. Tejon seems to think he and a select few will be the only ones ever selling RU.