Prices Doubling?

As the L$ continues to depreciate, the businesspeople of Second Life who are concerned with their profit margins continue to raise prices of in-world goods and services. How far do you think this can go? For example, if we wake up a month from now, and find that L$ is worth half of what it is today, will consumers tolorate prices doubling in such a short time frame?

I believe the prices from those who do not sell lindens but keep their money in world will keep prices in check. RL profits may 'suffer' but considering no other game I know of offers to exchange your game money for real money on its own..any profit is profit. Feel lucky you are part of a game that hasn't made it a bannable offense to sell your gold through an exchange.

As usual, after (seemingly) considering all of the facts, you've come to the wrong conclusion.

I could say the same of you. I expect the creators who do it for fun to prosper as other's prices rise.

To keep on topic, however..

IF prices were to double, I am sure some consumers wouls tolerate it, but I am sure alarge number would drop off the field. i theorize freebies would become mor epopular with the amount of paid for content shrinking.

You're right. They will keep the profitmongers' prices in check.

Shameless Plug time:

if you're looking for game-related items, I have a small selection in a vendor in Shark (up in the flea market area.

Not much there yet, and prices reflest what I feel it's worth (and I generally undervalue my work).

I can also promise that I will never cash out a single L$, and that my prices will never change upwards (I might lower to increase sales, but...).

IM me inworld for landmark if interested.

End Shameless Plug.


But really, if something happens to sell, great. I figure my savings will cover any lean times I might face.

I'm too lazy to raise prices. I'd have to update my vendors, displays, sl boutique, etc. Screw that!

I bought the JEVN vendors yesterday which should simplify that task.

It'll be a lot easier once somebody builds in a "set price in USD, update L$ price automatically from Lindex rate" function into one of the major vendor systems, if they haven't already.

I toyed with the idea but I don't really care enough to actually implement it. Unfortunately llHTTPRequest doesn't do https:// connections yet, which means it can't access the page directly, so you'd have to have a mirrored site which did and parsed it, and... I can't be bothered. But the principle is very simple. I assume that people are working on it right now.

It'll cause actual inflation rather than just exchange rate fluctuation for a change, which will be... interesting.

It's not really a price increase when you consider the actually exchange value. Prices are being raised everywhere get used to it.

The stores I shop at haven't raised prices yet but we'll see.

Frankly, I've got so much stuff I haven't been shopping as much lately and probably won't shop more if prices increase. *shrugs*

I've said it before in other threads, I don't think demand is very elastic in SL.

I'm rescripting my plants and improving many of the textures. The new version are priced twice as much as the old. The increase reflects the hours of work going into the transition rather than the price of the lindens though. Linden devaluation included, they've gone from costing thirty-five to sixty cents US.

Is this the part where I get all hyped up about the market crash and stuff?

I agree with this. Moreover, I haven't noticed everybody raising their prices. If and when they do, I will just buy less.

coco

Shaun, haven't you come to realize that Jonas answers each topic from his own personal situation. Not globally. If something has a direct impact on his habits, then it is news. If not, it is a non-issue.

Inflation? Not an issue. Jonas doesn't buy stuff.
Stipends? What harm could they possibly do - nobody "buys" stuff anyway.
SL business owners? A non-issue. Jonas isn't one.

JonasWorld (tm).

I however am, and I use any income to pay rent on the land the shop is on. I also take the time to actually create my stuf. I do NOT run around SL looking for freebies to throw into a box and sell at a high dollar price to unsuspecting newbies. I find such behaviour totally dishonest and predatory. I still think Linden should reinstate the stipend, make all third party sales of L's a bannable ofense, and take the market themselves on a fixed rate. And while they are at it make rigged games/contests and freebie reselling a perma ban offense.

"and take the market themselves on a fixed rate."

And how do they decide whose Lindens get sold first?

Musuko

You can ignore Jamie, she has no idea of what she is talking about. Sortof like no idea what ethics are.

I rent land from LL directly.

1. I shop, I just do my best to shop form people selling for the joy of creation, rather than greedy people who only want USD - I also don't buy freebies from freebie resellers

2. Everyone buys stuff. Stipends ar ebeing used as a scapegoat for the undercutters. How come the exchange rate of gold hasn't changed much on WoW despite more and more of it? Or the exchange rate of cresdits on IMVU dropped like the lindex DESPITE NO EXISTENCE OF STIPENDS.

3. Buesiness owners - I am one, and doing well. I also sell my own content as opposed to things that others make freely available.

Personally I have yet to see anyone raise prices, but to be fair I don't go shopping everyday, just whenever I get a whim to buy a new gadget, weapon or AV to add to my ever inflating inventory..heh. However, as I do sell my own share of products...[shamelessplug] *Devious Designs in Mormo where you'll find melee weapons, sounds and gestures, gadgets, pictures, cheap furniture, an ever growing selection of demon/devil horns (color, shine and texture adjustable via touch menus with NO open listens!...as soon as I finish updating them all that is...heh), prim wings, high quality skins and ever more being added [/shamelessplug]...I have yet to raise my prices since I've started selling things over a year ago. I have made higher quality products since I began and have thusly set a higher initial price for them, but never have I raised my prices. As a matter of fact, I've been considering LOWERING some of my prices just so more people could afford to buy my crap along with everyone elses crap that they're buying...lol.

I'm really not too worried about the (apparent) plummet of the L$, it will stablize eventually, perhaps not where sellers would prefer however. But alas, my name isn't 'Chicken Little' so for me, the sky isn't falling.

Will you be improving your magnolia tree?

I was thinking of remodeling my parcel (building a new house) and I love your magnolia tree!

It really has already happened, when I joined, everything was pretty much 50L, unheard of to see 500L....Now seeing 2000L is not abnormal, outfits around 400-500L, not unheard of..so in less then 1 years time, a 350-450L increase for clothes, and a 1000-2000L increase of larger toys.

So has already happened, and if the dollars does drop more, prices will increase, and they are. I seen thing I used to get 3-4 month ago for 500L, are now 800L...So it is happening now. Maybe not world wide yet, but it is happening.

linden dollar values are dropping daily/hourly. i am having to raise my rent prices to cover my tier fees. i need to price in an estimated l$/usd$ 30+ days out.

Keeping aLL my money in world is the biggest problem I have with the huge drop in $L value. I don't sell my $L, I keep them in world. This is also $L I have bought with my real world $USD. Some day I would like to be able to convert the money I have invested into the game back into $USD. After all, I have worked pretty hard to earn that $USD. With inflation, however, or specifically the deflation of the $L, the real world money I have invested into SecondLife is worth less and less and less every day. Thankfully I was able to figure out how to make a profit that's high enough to keep up with inflation, so my $L did not loose as much in value a it could have (what was supposed to be $780USD, was $630 just three weeks ago, and is not even $600USD today). I knew how to do this and had that option. Many others did not. But those others are not you, and so this does not affect you in any way. We know that already. don't mind me, I'm just talking to myself.