Selling items for Kronos doesnt make sense to me.

Discussion in 'Time Locked Progression Servers' started by Dabrixmgp, Apr 4, 2019.

  1. Dabrixmgp Augur

    OK its been a while since I took an economics class but I feel like basing the economy off of Kronos doesnt make any sense at all. Obviously as more plat enters circulation the price of Krono will go up. Thats perfectly expected because as more people have more plat they are willing to pay more for Kronos. The problem arises once you start using Krono to pay for an item unless I have this completely wrong. Again I already said Im no expert so if someone else is please correct me.

    According to TLPauctions the current going price of a Krono on Mangler is around 1900p. According to the same website the current price of a SSoY(Yak) happens to be 1 Krono. Therefore its safe to say that 1 Yak = 1900p. If we go back 7 days you will find that a SSoY was still selling for 1 Krono. However here is when I found a problem. 7 Days ago the value of a Krono was only 1500p. Therefore a week ago the price of a Yak was only 1500p. In 1 week the price of a Krono has gone up roughly 27% from 1500-1900p. This also means the price of a SSoY has also gone up roughly 27% because 1 Yak is still going to cost you 1 Krono.

    While this is my first TLP its not my first time playing EQ. When new items used to enter the market they demanded a premium at first because supply is low while demand is high. However once time passes and more people acquire the item while supply remains relatively the same, or even increases then shouldnt the item lose its value? Hypothetically speaking lets say in one month Kronos are selling for 5k and a Yak is still 1 krono. Does that mean the price of a Yak more than doubled in a month even though there was no change in supply and the demand is most likely decreasing? What if everyone on the entire server already has Yaks will they still sell for 1kr even though the demand is 0? This just doesnt make any sense to me at all.
  2. Iyacc Augur

    Perhaps a portion of the population has started new alts and there was a spike in demand?
  3. Ceffener Augur

    Gotta look at buyers, not sellers. People are buying a Yak for 1200-1500pp, yet currently buying Krono for 1800-1900. So the price of a Yak how now dropped below 1 Krono and will most likely continue dropping. Unless demand outweighs supply raising the price back up.

    Price will also rise overtime do to inflation if their is still demand for the item.
  4. code-zero Augur

    In a month it's unlikely that a Yak is going to still be priced at 1 Krono. The value of Krono constantly goes up as the economy builds and there's more plat while the prices of things like yaks go down as they become more common. You can't click a Yak to consume it for 30 days and remove it forever like you can a Krono
    Barton likes this.
  5. Korzu111 Elder

    The only 2 things with actual value in the Classic EQ economy are: Kronos and Items for Epic Quests. You’ll virtually never lose money on either in Classic unless you grossly overpay for an epic item like Slimeblood of CZ. Every other item, and platinum, will be worth less tomorrow than it is today. Trading items for epic-quest items is highly impractical, so people want Krono.

    There are some items that’ll keep value way better than others; Withered Leather Tunics for one. Most of the classic items, like SSOYs, you’ll be vendoring a few months from now.

    This particular server’s economy is pretty weird in large part because focus effects are disabled, and that drove value for many items on past servers. That I can buy a Djarns for one Krono 3 weeks into a new server is really weird - it’d normally be 5+ KR right now. I don’t know how this’ll effect things. Krono farmers aren’t getting nearly as many krono as they were on previous servers. I imagine they’ll focus on plat farming and the plat cost of krono will be higher than other TLPs were by the end of Classic.
  6. Nebulos New Member

    I think this entire game is not about enjoying the lore anymore really, it is mostly about capitalizing on the economy for most players.
  7. AgentofChange Augur

    I demanded 10 krono for gebs throughout classic on multiple TLPs. Nobody ever bought them but that is the price I demanded anyway. You can ask someone to pay any price you like. Nobody is being forced to pay it.
    Grogak likes this.
  8. Dominate Elder

    There are multiple relationships that you are talking about here.

    Krono VS Plat
    Items VS Plat
    Items VS Krono

    They are not independent relationships of each other, but in general, until Luclin, Krono will always go up VS items and plat. Platinum is constantly being inflated without any real plat sinks to take actual currency out distribution.

    Your error in logic is that you don't take into account inflation on platinum. Items experience inflation at a much slower rate than plat does, and items value graph looks roughly like a plateau. When Kunark is impending, roughly 2 weeks prior to its launch, some items diminish in value (i.e. Yak in your example) and IMMEDIATELY drop when Kunark launches. There are too many weapon options in Kunark, and classic weapons get hit the hardest.

    Plat value always diminishes(inflation) over time. Think about it like $1 now versus $1 in 1960. That is why a Yak is going for a Krono now, and was then. The plat is worth LESS than it was versus both items and Krono. In classic plat experiences DAILY inflation. Krono went up over 100pp VS plat just yesterday alone. This is the way it is until Luclin, where the price of a Krono will hover, and even decrease, until PoP. I have not played past then, but the addition of instanced group content really diminishes the need for Krono to purchase items instead of just play time on your account.

    As more plat is created via the slaying of mobs and vendoring their trash loot, your plat sitting in your inventory will become worth less and less every day it does. Hedge your bet. Purchase Krono, and sit on it.

    Basic economics.
    Bobbybick and Volts like this.
  9. Nebulos New Member

    I love how people type "Basic Economics". It is like they do it to stroke their own ego to justify their godlike perception of economics. To me that shows how immature you really are. You could of just left that out.
  10. jeskola Why no Erudite Female avatar?

    Ikr. Basic forum etiquette.
  11. Xeris Augur

    Price of krono has increased faster on Mangler than on other TLP I've noticed. And prices of items is lower than usual... GEBs were like 2-4 krono
  12. HoodenShuklak Augur

    The big curve ball is that people are willing to spend Krono at a rate that is unequal to platinum. The vast, vast majority of players on TLP are coming from another EQ server so they have banked numerous krono. They're willing to spend Krono and don't have plat. For many, this means simply bartering with krono and cutting out the plat.

    I might buy a yak today for a krono because I simply don't have plat. Early servers are plat-poor and krono rich. Items rapidly lose value and Krono maintains value. There are some distinct differences between a TLP and a real world economy or an economy that didn't begin with ultra wealthy players.

    It's partly why the "race" to hill giant hill is both so lucrative and so toxic in every early TLP. Platinum is scarce. Wealth is not.
    code-zero likes this.
  13. EnchFWO Augur

    Work 1 hr in r/l and buy 1 - ??? krono to buy the item or camp them item for 20-80h+ in game. Or trade krono for plat once it stabilizes to fund your TS goals, again, saving countless hours of farming reagents or plat (to buy them).

    What does not make sense about that? o_O
    Madcat1983 likes this.
  14. Dominate Elder

    I noticed this as well. I feel like Coirnav increased super fast too. The average player is far more comfortable with Krono than they were at first.
  15. Zansobar Augur

    GEBs have no focus effect on Mangler unlike on past TLPs hence the low value.
  16. Scruff Elder

    there's no focus items, so platinum for krono is the only meaningful conversion when items are as low-impact as they are in classic. GEBs and djarn rings are already 1 krono a pop and still dropping in value every day
  17. Mashef Augur

    Many players do not buy krono with real life cash, we acquire them through game play and farming. If you have 100 krono and you don't want to deal with the camp but want the aggro of an SSoY for your warrior, you will gladly part with 1. The value of a krono to each individual fluctuates.

    A wealthy person who can afford thousand's of dollars of disposable income for gaming may very well choose to buy krono to acquire gear instead of raiding/playing more.

    Krono is an appreciating asset whereas the gear depreciates unless you get some pre-nerf items. It's all about your gameplay style and life situation on what is worth it to you.
  18. EnchFWO Augur

    There ya go.

    Obviously the farmers are not paying cash - but that's one of the major points being made. This is about people actually trying to obtain items without farming.
    Fallfyres likes this.
  19. Grailer Augur

    Better to turn excess pp i to Kronos because when you need plat you can sell kr for more than you paid for .

    It’s supply vs demand . Pp supply keeps increasing . Item supply keeps increasing.

    Krono supply could be lower than consumption which means it could go up in value very fast.
  20. samner New Member

    Your entire premise with the SSoY example is just completely wrong. At some point in time a SSoY may have been valued at 1 Kronos. That in no way means you can extrapolate that relationship to previous or future weeks. A SSoY certainly will not be worth anywhere near 1 krono in the future. In general as a server ages the plat value of krono goes up while the plat value of old gear declines.

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