Saving the Vend-
[This "rule book" covers the main causes of deflation, not all.]
Note [Very important]- If you call your self an Exchanger, are you really an Exchanger if you put your items in the Vend [ Gaia Marketplace for those of you who are new]?
If you call yourself a Vendor, are you really a Vendor if you try and sell your items in the Gaia Exchange?
We, the people of Gaia, are causing deflation.
You may blame it on the 2% tax, but that only has a minor, indirect effect on deflation in the Vend.
Undercutting; which I will cover later; has the biggest, DIRECT impact on deflation.
Deflation consists of many factors including: supply, demand, customers, suppliers, other competitors, and price.
Case in point: Horns of the Demon. [Statistics as of 11/24/08 9:30 PM CST]
Because there are so many sellers for this item, they have undercut each other in order to sell their item faster than the other suppliers, leading to other suppliers cutting their price in order to combat this outside force. As more suppliers enter the equation the prices on the items decrease.
Tell me that the 2% tax is leading cause for deflation, and I will say you're wrong.
WE, THE GAIA PEOPLE, ARE THE LEADING CAUSE FOR THE DEFLATION IN THE GAIA VEND.
How to save the Vend-
1. -- Knowing what causes deflation.
Deflation- Economics. a fall in the general price level or a contraction of credit and available money.
Recession- Economics. a period of an economic contraction, sometimes limited in scope or duration.
In reference to the Gaia Economy we are suffering from deflation and/ or a recession, if you will, at this point.
2. -- Knowing what undercutting is.
Undercutting- to offer goods or services at a lower price or rate than (a competing price or rate) or than that of (a competitor).
This is considered Gaian undercutting:
The price between the lowest Vend price and the second lowest Vend price is less than the 2% tax can equate for.
Undercutting causes deflation.
If you can prevent undercutting, please do.
If someone does this to YOU, take your item off of the Vend until it sells.
Once this competitor's item has sold, you may choose to put your item back on the Vend list, or wait and see if you can make bigger and better profit on your item.
A great point, made by a Jasmine: "Though undercutting isn`t always a reason why an item deflates.
It could also be the item is unpopular & no one buys it.
ex: Smashing Cities"
3. -- Knowing what price copying is.
Price copying has no formal definition, as it is a phrase.
Case in point:
Notice that the highest buy prices are the same.
[These two items are from two different suppliers.]
Prevent prices copying from happening by not doing it.
When this happens to you, follow the same steps as you would if someone was undercutting you.
This is the end.
If you have input as to what any of this stuff is, or need further information on what or how to prevent any of this stuff from happening, please contact me via private message.
If you would like me to add another major cause that I have not covered in here, please, again, contact me via private message.
Thanks for your time.
