Supply/ Demand/ Investment

An important aspect of WYD Global is understanding the process of buying goods from other players. Sometimes this system can become confusing when setting prices and buying goods. Therefore, I am going to explain some simple concepts to all of you so that you can better understand WYD Global’s market economy.

Market Economy: A realized social system based on the division of labour where the prices of goods and services are determined in a free price system set by supply and demand.

Supply and Demand:  In a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity.

How does this affect you? Simple.

One of the biggest frustrations in WYD Global is not understanding the market economy system. I am sure most of you have seen Lak powders selling for 3.5 mil one day to wake up the next and see them selling for 3 mil. Therefore, if you are in need of gold, what should you sell them for, 3 mil or 3.5 mil? Lets look at this situation a bit deeper.

If there are a lot of Lak powders being supplied/circulating (GM holding events or a lot of people were able to obtain Lak scraps to form Lak powders), then the price of Lak powders will be relatively cheap. These are times when Lak powders usually sell for 3 mil. However, if there aren’t very many Lak powders in circulation, then you see them selling for 3.5 mil to 4 mil. But don’t panic.

A good rule of thumb is this: Look around! See what other people are selling their Lak powders for (or Ori powders, or any other item). If you see everybody selling their Lak powders for 3.5 mil, but you need quick gold, then sell yours for 3.2 mil. Chances are, you will sell your items quickly. You will also notice a change in the market economy. Because your Lak powders sell faster than everybody else, due to your competitive pricing (but really your desperation for gold), people around you will begin selling their Lak powders at 3.2 mil. They will shift their prices to be competitive with your prices.

An example of this ocurred to me not too long ago. I noticed everybody was selling their Scouts potions for 200k. But nobody was buying them. I began selling mine for around 150k and people were buying them every once in a while. Therefore, I lowered my prices even more to 120k and I noticed that my Scouts potions were selling like hot cakes! But I also noticed that my peers began lowering their prices as well. If they didn’t, they would never sell any of their items. That is a simple taste of the market economy.

So how do you know if an item you want is at a price that is fair and reasonable? The answer again is: Look around! There is always somebody that is willing to sell their great item cheaper than somebody who can afford to sit and wait. Be patient. Look at the different prices people are selling their items for and then choose an affordable option for yourself. Far too many people buy the best item as soon as they see it and then end up disappointed a week later when they realize that somebody else is selling that same exact item for 10 mil less. Don’t be a victim of compulsive shopping!

Investment: The choice by the individual to risk his savings with the hope of gain.

Investing is a great tool that can be utilized in WYD Global. How? Here is an example. Lets go back to those Scouts potion I was speaking about a little earlier. If I see that somebody is selling them for 100k a piece, or say 95k a piece, it would be in my best interest to buy them all. Why? Because I know that the market is currently selling Scouts potion for 120k. Remember when I said I could shift the market by lowering my prices? I can also prevent prices from shifting. I can buy every single low-selling Scouts potion and continue selling them for 120k. So basically I buy for 100k and I turn around and sell them for 120k, making a 20k profit.

Always remember that when an item is scarce, you will pay a higher price for it. This too applies when their are numerous items in circulation, you can afford to bargain, which will play in your benefit because you will spend less. More Lak powders = 3 mil, less Lak powders = 3.5 mil to 4 mil.

Another great feature in this system is playing with demand. If you’re one of those people that has 50 Lak powders stashed away and somebody absolutely needs to buy them, you can set a competitive price for yourself. However, this will only work if there aren’t that many Lak powders in circulation. Perhaps you will be able to sell for 4.2 mil because nobody has Lak powders. Highly unlikely, but never uncommon.

The last thing that you need to understand is bargaining. If you want an item and somebody tells you to offer, start low and work your way higher. You never want to start out high and feel like you got ripped off when the transaction is complete. Start at a low offer and move up. However, have an idea of what the max is that you would pay for that item and stick to it. Do not go over that max price.

Well, I hope this information is helpful to your future buying. Just remember that patience always rewards heavily. Also remember that what I have said regarding Lak powders can be said for any item in WYD Global.

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~ by caligstar on August 25, 2008.

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