Raise your prices, otherwise Philip won't grab a clue

Philip is relying on people not raising their prices so he can say that inflation is not happening.

Suggestion - raise your prices (btw philip, check the land market .. all the land barons raise their prices everytime L$ significant reprices!)

I will not raise my prices. I will continue to keep my products priced reasonably so that they are more affordable to the majority.

I won't raise prices, my prices ar enot variable base don the sell rate.

This is exactly what he would expect you to do

This post makes no sense at all.

"Philip says there is no inflation, so lets create inflation to prove that there is inflation."

Wuh?

I base my prices on affordability and what I think my products are worth. Not on the value others place on the Linden dollar.

The real thing is, those who do not raise their prices will be pricing themselves out of the market, and never make the money they might want.

That includes me.

Part of the problem is businesses in SL are not controlling their price of goods and services in comparison to what the Linden is doing. When the linden drops, our prices like every other market in the entire world should naturally rise and vice versa.

As business owners, we all have a responsibilty to ourselves, our businesses, and the SL economy to figure in our expected margin for the month, quarter, year, etc. and then make the proper adjustments in price to meet that target margin.

When you say that you will not adjust your price because you want to offer affordable products and services to your customers is an inaccurate statement considering that your customers will be paying exactly the same in US$ regardless. Your customers will not be paying anything more than what they would normally considering the fact that they are actually getting more linden per USD when the linden deflates.

By not raising your prices you are only hurting yourself at the expense of giving your customers an even better deal than what they would have gotten if the Linden were at 250/1. So if you continue to make the choice of hurting your own personal wellfare as a business owner than you really have nothing to complain about since you are doing it to yourself.

By keeping my prices more affordable, in the long run, I can make up the difference in volume. So, instead of selling say 10 of an item at 100Ls I can sell 100 of the same item at 50Ls. That's a difference of 4000Ls. I know for a fact it works in RL and there is no reason why it wouldn't work in SL. People do tend to buy things at lower prices. How do you think businesses like WalMart became so successful?

Word does get around that so and so has such and such at an affordable price.

It's called repeat customers. Give them a good deal and they are more likely to come back and buy more from you.

Raising prices tends to 1 be a hassle to content developers. 2 hurt those that dont earn L outside of it. In relation to USD they may be paying the same price but that doesnt mean that they are going to have it. Keeping prices the same isnt necessarily putting youself out of the market either..... As people may be more liable to buy them at a lower rate if a similar product is more expensive.

Point of the matter this becomes wether you want to jump the gun or not. Frankly i feel those with the ideal's to keep their prices are the ones that belong in SL not a ton of people trying to just turn a major profit. I mean frankly if you create inflation your more liable to piss off users. And to do it just to prove a point is complete and utter stupidity even if L value decreases or increases.

The fact of the matter is not everyone that runs a business is trying to cash out. Some people just make stuff to sell to buy other things in SL (the vast majority of people). Not all products sell well and respectfully alot of prices dictate rate of sales. Most people have probably tested to see what people are willing to spend and set prices accordingly. To change it to prove a point shows nothing other then the greed in the community.

This isnt the real world and there is a much broader social/consumer base in SL as far as what people buy. Good/Services often differ in SL and most prices reflect alot of factors. They arnt jsut keeping it that way out of spite but rather ideals they have and testing!

This is almost accurate, except keep in mind. Walmarts prices is still a reflection on the value of the US$. The reason why they can offer pricing so low is becasue they do such a large volume in purchasing through the various distribution channels so they are able to get the best available pricing in the market for that particular product.

We face a slightly different business model than walmart in SL since most of the SL businesses are the manufacturer and retailer combined. Yes you can make up for it in volume, however your product will only sell based on the demand for it and the level of competition in the market. Lowering your prices often can grab market share, however people buy based on more factors than just price alone. So price does not gaurantee that you will sell anymore than you would had your pricing been in accordance to what the linden does. Once again, you are only hurting yourself by not adjusting your price.

I would love to be able to set a fixed price based on the US dollar. The only way I see this happening is with a product like this(old dead thread in products wanted). Maybe there is a renewed interest in somthing like this, or maybe not?

You know, I had thought that not changing prices consistantly actually helped kept a more stable and consistant market - just my thoughts but - in SL it's easy to cause inflation, and once inflation has risen it's easy to undo that effect causing the content developers to have more money after it is done - thus throwing the economy out of whack again...

I'll keep my prices where they are TY. sometimes new folks like to find nice things affordibly. You can find others to go along ith market fixing nd collusion I am sure.

I will not raise prices and don't need to. It seems to me that sales went up when the currency exchange went over 290.

Ha! My number of sales has climbed at least 1000% since last Sunday because I set all my items for sale at L$0. And this at no loss of profits because I'm tiering down to basic, so L$0 in monthly expenses.

Like someone has mentioned before, not everyone wants $L so they can cash out.

ok? I apologize but I have read your whole reply here and not one thing in it makes any sense to me, first of all, no one is creating inflation, thats impossible. Inflation and deflation are products of the market place and can not be dictated by any one person.

2nd, the whole idea of owning a business is to turn a profit, if thats not your goal, then why not give your products away for free! Unless of course you want to pay for your land fee, your annual premium account fee, your time, or even have extra money to do the things you like to do for fun in SL. If this is the case then you are trying to turn a profit. However if Its not, then really, give your products away for free and stop complaining. If you are in business so you can buy other things in SL well the same applies, people will eventually raise prices as the market forces them to do so, and then where will you be. You may not be in business to cash out, however.. I bet a lot of the people you are buying stuff from in SL are. So what happens when they are forced to raise there prices? oh well, I guess you wont be able to afford to buy as much as you used too. So who's fault is that, the people who want to earn a living in SL, or the people who refused to adjust thier prices?

3rd, you dont raise your prices to make a point to LL. That is not the objective and should not be, even though some may think it is, like the person who created this thread. You raise prices becasue you ARE in business to make a profit so you CAN pay your expenses such as land fee's, your entertainment in SL, your account fee's, your time or whatever it may be.

4th, no one is going to get pissed off because business is doing what it should. The buyers are still happy becasue they are getting a product at a fair price, and the sellers ar now happy too because they are still making the amount of money they need to pay their expenses or to do with what the please.

5th, I highly doubt that the majority of business owners have tested what consumers are willing to pay for a product or service in SL. Even if they have, well that too is something that changes over time. Think about real life, do you think anyone in there right mind would have paid $30,000 for an automobile in the USA, in 1950. NO WAY! Cars sold for a couple thousand dollars then. However, today, its about the norm for a new car and millions of people each year are willing to pay that price.

6th, you are correct, this is not the real world. However, it is a very real economy no matter how you slice it and dice it, and it deserves the attention an the treatment as a real economy should.

My prices are not my only selling point. Quality, service, convenience, low prims, etc all figure into the overall picture. You haven't told me anything I didn't already know. I haven't lowered prices but at this point in time I am not raising them either. And considering I have more than one product... well I don't think I need to go into all that.

I'm not necessarily in SL to make USD to pay for SL or my RL bills. Sure it would be nice to have my sales make it possible for me to afford a premium account and tier but that is not why I'm in business. I'm in business in SL because of my love of building. If I build something usefull to others and make a few Ls doing it then that is not a bad thing.

You're missing the point. When the price of the Linden decreases, your products are actually *cheaper* now than they were four weeks ago. Raising the L$ price of your objects now actually keeps them steady with the US$ value they had four weeks ago.

In no way is that market fixing. People who are trying to maintain a consistant value from their sales are not evil. Sheesh.

You can still have repeat customers if you sell something they demand regardless of price. Price has little to do with why people choose a plce to buy from. People dont buy based on price alone, most buying decisions are based on value, or perception of. Value can be based on quality of the product, the level of customer service and even the realtionship they have with the seller. obviously if the price is not in check with their perception of value then they will go elsewhere. However, this does not mean you can not raise your prices to keep in check with inflation?

Actually, just so you know, you lower your prices every single time you refuse to raise them. Today your products are worth less now than they were 4 weeks ago because people are able to buy more linden per US$.

Please read my last post. The one I made before you posted this. The fact is I have never sold any Ls. I may at some point in the future but right now I am not in a position to do so (nore have I yet been in a position to do so), so the value of the L really isn't a concern for me, in that respect.

its not always to turn a profit. for starters and in SL yes people can cause inflation quite easily. Its called Lindex - Inflation of Linden is caused by people selling L at a lower value and mass amounts of it to. Thus peopel with less money undercut and it becomes a never ending cycle.

And correct me if im wrong but they started this thread as to raise prices to make a point so dont try to argue that fact thats the point i was saying.... And its to turn a profit sure but im talking sl - r/l profit where as your talking all around profit. Not everyone is trying to turn a r/l profit from SL. Some of us create content to make money in SL but dont want to turn a r/l profit. Hell i co own a club and if needed i'd put profit made in SL back out to the general public. Sure its at a loss to me but.... Im here for fun... I like to have L to do stuff but. As im more on the consumer end of things i dont want people ruining what L is to other people i dont care about it for myself but i do care about SL.

Well, i'll just take my whole response out of this thread sine I see that you changed yours. I havea new repsone to that thread however.