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Is Your Business Being Affected by the Falling L$?

Ranma Tardis
沖縄弛緩の明確で青い水
Join date: 8 Nov 2005
Posts: 1,415
05-11-2006 13:39
The more you raise your prices the less demand, the less sales. There are no "have to" have items in Second Life. No matter how much you think you need that new skin, dress or whatever, if you don’t have the money. You will not buy it!

This is basic economics. You might be good builders and scripters but you need to get an education!
Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
05-11-2006 13:42
I never sell lindens, therefore any sell i make in my shop is profit.

Not doomed to oblivion, and my profit keeps going up.
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
05-11-2006 13:43
From: Ranma Tardis
The more you raise your prices the less demand, the less sales. There are no "have to" have items in Second Life. No matter how much you think you need that new skin, dress or whatever, if you don’t have the money. You will not buy it!

This is basic economics. You might be good builders and scripters but you need to get an education!





NewsFlash:


If you cannot compete on price against the competition,
it would be recommended you find yourself a new Business Model.
Skins and Clothing are an over saturated Market with cutthroat
competition. Get out and into the Land Baron Business...
Become the next Tringo Manufacturer... Do something unique.
Something you can monopolize..
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Jenna Fairplay
Sim Sales Broker
Join date: 8 Aug 2004
Posts: 374
05-11-2006 13:43
From: Ranma Tardis
The more you raise your prices the less demand, the less sales. There are no "have to" have items in Second Life. No matter how much you think you need that new skin, dress or whatever, if you don’t have the money. You will not buy it!

This is basic economics. You might be good builders and scripters but you need to get an education!



Have you seen the price of skins lately and yes people do buy them. Not just one or two but whole sets and from mulitple skin makers. I know many who own whole skin sets from every skin maker in sl and the hair omg the hair my friends bug me for when Im gonna make more hehe but thats a different topic. :D
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Kazanture Aleixandre
Here I am.
Join date: 5 Oct 2005
Posts: 524
05-11-2006 13:44
View profile:
"Vasudha Linden
Linden Lab Employee
Last Activity: 04-25-2006 10:13 PM "

does anyone have an idea if she is still working for LL or not?
Jon Rolland
Registered User
Join date: 3 Oct 2005
Posts: 705
05-11-2006 13:55
If the current changes are her idea hopefully fired.
Kazanture Aleixandre
Here I am.
Join date: 5 Oct 2005
Posts: 524
05-11-2006 14:03
From: Jon Rolland
If the current changes are her idea hopefully fired.

If she is fired, she is fired at least 15 days ago(look at the last activity time).
Ceera Murakami
Texture Artist / Builder
Join date: 9 Sep 2005
Posts: 7,750
05-11-2006 14:32
I don't think the price of the Linden has had much impact on my sales, no. It has, of course, cut back on the real cash profit that I can get by selling Lindens on occasion. But I don't set my prices in terms of how many real dollars I will make. I can't begin to charge anything close to a rational hourly wage for my work in SL. I charge what seems to me to be a fair price for my work, and what I manage to get back is a nice little profit, for having fun doing something I enjoy doing. I certainly wouldn't complain if the exchange rate got better. But I'm not losing any sleep over it, either.

I haven't seen any reason to alter my prices. Not yet. As long as it costs me the same amount for all space rental and for uploading textures to use in-world, my fixed costs don't shift based on the Linden's value. If they start charging more to upload textures, or if my mall space rental fees go up, then I might need to shift my prices a bit.

The vast majority of my income now is from sim building. A sim owner who is already willing and able to fork over the cash to purchase and maintain one or more a sims can usually afford my fees easily enough. The biggest impact there is that they have to charge more for land sales/rental as the Linden's value gets worse, in order to make the same amount of dollars to cover their sim maintenance and purchase fees. That cools down the rate at which they can purchase new sims. But the people I am working with now certainly don't seem to be slowing down...
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Sorry, LL won't let me tell you where I sell my textures and where I offer my services as a sim builder. Ask me in-world.
ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
05-11-2006 14:41
That is true, the one sector of the SL Economy that will get
hit the hardest with a falling Linden Dollar are Landlords of
Rental Properties.

They "MUST" raise rates at some point if the rental fees they
charge are used to pay tier and profit. Once their profit hits
zero, they have to raise rates, else they are providing rental
space as a charity and negatively impacting their own wallet.

It would be nice if there was an economy report that followed
the average rental prices. This would be a great check against
inflation. Since Rental Owners are motived to raise rates if the
Linden Dollar declines..
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