Prices in Runescape may soon go down
Sometimes I go to this cool rare bookstore near where I work. The place has more books than will fit on the shelves. You have to squeeze past large stacks of books that look like they would topple at the slightest touch. The place is run by a crusty old man who acts like customers are an inconvenience to his business. The guy hardly talks at all . . . until you get him going, then you can't get him to stop talking.
The place is like a time capsule (he writes receipts up by hand), so I just had to ask him if the internet had effect his business much. Oh boy, that got him talking! He told me the history of used and rare bookstores in the area, how many had closed their doors forever, how NO new ones had been successful in the last twelve years. All because of the internet. He considered himself lucky because he started using the net early and adjusted to new market conditions (he actually has a respectable computer back behind some more piles of books). The internet had caused prices for rare books to plummet.
"There's no more pent-up demand", he told me. He explained how, in the old days, people would hear about a rare book a few times and start to become curious about it. They would start looking for it at book stores but would not be able to find it. The harder the book was to find, the more the desire to have it would build. Then, one day, they would stumble across it in some dusty store. Overjoyed they would say "At last! I've been looking for this title for years!" At this point they would be willing to pay almost any price to possess the rare tome.
But now days the same customer can search on the internet when they first hear about the book. They can see that a dozen copies are available, and then decide if they really want it. They often decide they don't want the book.
Things have changed on the supply side as well. In the old days small estate sales would have a table of books in the corner somewhere. The same sort of neglected tables of books can be found when people clear out their attic and have garage sales. A few people would buy a couple titles but most of the books would go unnoticed. But now days all the books can be put up for sale on-line.
In short: the internet has reduced pent-up demand for rare books and increased the supply. The result was that the price for rares went down.
Ok, you say, but what does this have to do with Runescape?
Well Jagex has just announced a Grand Exchange, quote:
"Later in the month, we bring you the 'Grand Exchange'. This new building will be located in the north-west of Varrock and will house a huge new addition to the game: the ability to offer items to buy and sell across ALL servers and to ALL players! You might, for example, go to the Exchange and put a full Barrows set up for sale - then, playing Skullball in Canifis, you might get a message telling you that they have sold and that you can go to the nearest bank to receive payment! The Grand Exchange will allow you to spend more time on the things you enjoy, providing a less time-consuming alternative to selling your items on the Forums or amongst the crowds of Varrock Marketplace."
Almost everyone has a few items taking up space in their banks which they never use but are worth a decent amount of money. They intend to sell the items one day, but never seem to get around to it . . . too much bother. But with the Grand Exchange it will be easy to sell this stuff.
On the flip side, if you are interested in buying a whip (or what ever), but don't want to go to a merchant world, you can pop over to the Exchange and see what is available. Seeing that a couple are in stock you realize that you can pick one up anytime you want to. You decide you don't really need a whip right this second and decide to pick one up some other time.
Supplies will go up but pent-up demand will be less.
Prices will go down.
The RS merchants will scream and rant. "The RS economy is Ruined!!!, Worst update EVER", they'll say. But they will be wrong, like always.
--
When I asked the old guy in the book store how HIS business was going, he told me "Great! Better than ever!".
"But you just told me about all those places going out of business", I countered.
"Oh", he replied, "They didn't adjust".
The place is like a time capsule (he writes receipts up by hand), so I just had to ask him if the internet had effect his business much. Oh boy, that got him talking! He told me the history of used and rare bookstores in the area, how many had closed their doors forever, how NO new ones had been successful in the last twelve years. All because of the internet. He considered himself lucky because he started using the net early and adjusted to new market conditions (he actually has a respectable computer back behind some more piles of books). The internet had caused prices for rare books to plummet.
"There's no more pent-up demand", he told me. He explained how, in the old days, people would hear about a rare book a few times and start to become curious about it. They would start looking for it at book stores but would not be able to find it. The harder the book was to find, the more the desire to have it would build. Then, one day, they would stumble across it in some dusty store. Overjoyed they would say "At last! I've been looking for this title for years!" At this point they would be willing to pay almost any price to possess the rare tome.
But now days the same customer can search on the internet when they first hear about the book. They can see that a dozen copies are available, and then decide if they really want it. They often decide they don't want the book.
Things have changed on the supply side as well. In the old days small estate sales would have a table of books in the corner somewhere. The same sort of neglected tables of books can be found when people clear out their attic and have garage sales. A few people would buy a couple titles but most of the books would go unnoticed. But now days all the books can be put up for sale on-line.
In short: the internet has reduced pent-up demand for rare books and increased the supply. The result was that the price for rares went down.
Ok, you say, but what does this have to do with Runescape?
Well Jagex has just announced a Grand Exchange, quote:
"Later in the month, we bring you the 'Grand Exchange'. This new building will be located in the north-west of Varrock and will house a huge new addition to the game: the ability to offer items to buy and sell across ALL servers and to ALL players! You might, for example, go to the Exchange and put a full Barrows set up for sale - then, playing Skullball in Canifis, you might get a message telling you that they have sold and that you can go to the nearest bank to receive payment! The Grand Exchange will allow you to spend more time on the things you enjoy, providing a less time-consuming alternative to selling your items on the Forums or amongst the crowds of Varrock Marketplace."
Almost everyone has a few items taking up space in their banks which they never use but are worth a decent amount of money. They intend to sell the items one day, but never seem to get around to it . . . too much bother. But with the Grand Exchange it will be easy to sell this stuff.
On the flip side, if you are interested in buying a whip (or what ever), but don't want to go to a merchant world, you can pop over to the Exchange and see what is available. Seeing that a couple are in stock you realize that you can pick one up anytime you want to. You decide you don't really need a whip right this second and decide to pick one up some other time.
Supplies will go up but pent-up demand will be less.
Prices will go down.
The RS merchants will scream and rant. "The RS economy is Ruined!!!, Worst update EVER", they'll say. But they will be wrong, like always.
--
When I asked the old guy in the book store how HIS business was going, he told me "Great! Better than ever!".
"But you just told me about all those places going out of business", I countered.
"Oh", he replied, "They didn't adjust".
posted by Knifestorm at 12:22 PM
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