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General Tabletop Discussion
*TTRPGs General
Buy High, Sell Low is a Dumb Economic Model
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<blockquote data-quote="Starfox" data-source="post: 5816858" data-attributes="member: 2303"><p>The real medieval economy was where goods were constantly scarce - supply could never match demand. Prices were regulated by guilds and laws, not by supply and demand. Goods were used and re-used, repaired over and over. I think the 50% sell price models this fairly accurately. This applies to lowly home-made goods and to magic items - skill and time is always in short supply.</p><p></p><p>Assuming the 3.5 model in the following.</p><p></p><p>An interesting experiment would be to have a PC-run "magic shoppe" in organized play. With a number of players in the same setting, a "market" could potentially develop. If a PC or group of PCs tried to compete with the 50% bye price, 100% bye price NPCs use, how well would that work? How large a group of customers does a magic item shoppe need to survive on a lower overhead than the basic 50%?</p><p></p><p>I think working as a magic craftsman could potentially work, making items to order at 75% of normal price. You are selling your xp at the rate of 1 xp per 12.5 gp each. But since you'll basically always be a level lower than your adventuring companions, you'll be making 50% more xp on the same adventure, and being better equipped probably makes you at least as powerful as they are. The problem is time; you can only make 300 gp a day this way, regardless of level (since everyone makes magic items at the same rate of 1,000 gp per day). But making items to order is quite different from running a magic shop that actually byes things on speculation.</p></blockquote><p></p>
[QUOTE="Starfox, post: 5816858, member: 2303"] The real medieval economy was where goods were constantly scarce - supply could never match demand. Prices were regulated by guilds and laws, not by supply and demand. Goods were used and re-used, repaired over and over. I think the 50% sell price models this fairly accurately. This applies to lowly home-made goods and to magic items - skill and time is always in short supply. Assuming the 3.5 model in the following. An interesting experiment would be to have a PC-run "magic shoppe" in organized play. With a number of players in the same setting, a "market" could potentially develop. If a PC or group of PCs tried to compete with the 50% bye price, 100% bye price NPCs use, how well would that work? How large a group of customers does a magic item shoppe need to survive on a lower overhead than the basic 50%? I think working as a magic craftsman could potentially work, making items to order at 75% of normal price. You are selling your xp at the rate of 1 xp per 12.5 gp each. But since you'll basically always be a level lower than your adventuring companions, you'll be making 50% more xp on the same adventure, and being better equipped probably makes you at least as powerful as they are. The problem is time; you can only make 300 gp a day this way, regardless of level (since everyone makes magic items at the same rate of 1,000 gp per day). But making items to order is quite different from running a magic shop that actually byes things on speculation. [/QUOTE]
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