EMC economics for dummies [Advise to new players]

Discussion in 'Community Discussion' started by SSRCMegaMall, Jul 3, 2016.

  1. [SSRC's Guide to Economics on EMC]
    I've decided to put all my accumulated knowledge from EMC over my 4 years into this guide to help new players and those willing to learn! :D Now these theories might not apply to every smp and are just my opinion. So please if you disagree, do so respectfully, thank you. I will do a new section every once and awhile and I graciously accept other emc members knowledge on EMC economics.

    Please feel free to post on this thread if you believe you have a serious constructive theory that will help new players. :)

    SMP-WIDE Economics
    I believe there are 3 points to consider when determining the health of an smp's economy.
    *There are alot of variables not discussed here of course, these are just the basics*
    1. Level of new growth and development
      1. Usually defined by new res's, construction projects, new malls, ect.
    2. Activeness/number of players on the SMP
      1. It is important to any economy to have active members in that economy. The more people that participate in a market leads to greater economic growth as money moves more freely in an active economy.
      2. The population of the server also increases demand. This allows newer members who open their shops to have customers and further increases growth and movement of money.
    3. Number of Stocked and reliable malls or shops
      1. This one might be one of the most important. I have found that one mega-mall of shop cannot usually sustain the demand of an entire SMP. Therefore it is important to have multiple malls and or shops to help balance and share the demand of the SMP.
        1. For example, If someone comes to my mall on SMP2 and i'm out of stock, I can send them to Poof's mall where they will most likely find the item in stock, if not there then Ladyjaye's mall will have it.
      2. The more malls and shops sharing the weight of the demand, the easier it is for players to enter and stay with in the market.
        1. Example, If mall A is out of stock the player will go to mall B which is in stock. This gives mall A time to restock. When mall B is out the player will return to mall A. Mall B will now have time to restock.
        2. If there are more than two malls then it is even easier for each mall to stay in stock and satisfy the demand in the economy.
    I base alot of these theories on John Nash's theory of Equilibrium. Which states that economies do best when an individual does what is best for himself and the whole of society.

    Now my advise for this section to players.

    Starting a mall/shop is extremely fun and challenging at the same time. It is a very rewarding experience. However, when it comes to determining the health of the economy and where you fit in you should take into account the points listed above in yellow. Work towards achieving prosperity on your server by encouraging others as well to make shops and malls. Don't be afraid to spend money as well. Do so carefully and when you can but don't fear it. It's important to put money back into the economy to ensure greater growth and prosperity.
    Mall/shop Economics
    In this section I will focus specifically does and do not's of starting your own shop/mall

    • Sell what is in demand
      • Many times I see people who sell things that are not in demand and I watch as they lose hope in EMC and the economy. Not everything is going to sell, so find things that people use on a usual basis and sell those materials/items.
    • If you are going to make a buy and sell chest make sure to cap
      • Capping the chest is filling up extra spots in a chest with another materials you're not selling (usually dirt) to prevent people from overselling to your shop and draining your store of money.
    • Build infrastructure
      • It's probably a good idea to consider building some generators or farms to ensure that you can keep a mall in stock. People will frequent a mall or shop that they can rely on for being in stock.
    • Price at or a little below the smp's going rate for a commodity.
      • Find out what a certain items sells for by going to local mega-malls or shops. If you are building a small shop making your prices a little cheaper is a good idea to help attract people to your shop over the big mega-malls. If you are building a mega-mall then try to match the prices of other malls. Contrary to belief you won't lose business because malls will go out of stock and players will then shift to your mall. Stabilizing a market is one of the most important things you can do as a mega-mall owner. It will help prevent rapid inflation and allow greater economic prosperity for newer members.
    • Kindness is key
      • Whether it be people that just joined, who could be future customers, or older members you don't talk to much, it is important to be nice to everyone while you are representing your shop. People won't spend their money at a shop that is run by someone they feel offended by.
    • Advertising
      • It is important to know what time to advertise. Note: you can only advertise a certain amount in a certain span of time. Make sure to see /rules for more details.
      • Advertise your mall by providing the res number, smp, and a little bit about what makes your mall special. Is it super cheap? Is it reliably stocked? Is it bulk buying? ect.
      • It's also important to stay on alert for when someone says, "Does anyone sell ____?" These are unsolicited adverts and you can reply to them without limit. (don't spam tho that's still against the rules). Reply to these quickly with your res number is a good way to increase sales. Don't reply with just "I do."
    I will add additional advise and sections later. At the moment this is just a few basics to get you started. I hope this thread has honestly taught you something and I hope to see you all getting involved with your local economies.
  2. Intresting.
    SSRCMegaMall likes this.
  3. I think that guide will help a few players... I find many players just don't sell what people need/want.
    SSRCMegaMall likes this.
  4. You could add a section about promos. Something like : keep all the promos you claimed and ask advices from people you trust before selling/trading them.

    I see so much new players being slowed down by the fact that they hand in promos at 1k a piece just for wood...
    SSRCMegaMall likes this.
  5. That, plus taking margins into account.
    High margins are also a sign for instability, low margins sign of health and stability.

    The number of shops is not important any more when it reaches a number that (already) shows a healthy competition.
    After that, the sum of stock in the shops is a more important factor.

    SMPs do have their local characteristics, but they can't be much different from the EMC economy overall.

    EMC economy is slowly stabilizing, but it is hard to give a forecast how it will develop and how fast its health can improve. The sum of stock over all shops is still quite tiny - there are many players that can easily buy whole EMC out of almost any specific item, producing high fluctuations in price. And there is that one player that is very powerful, is involved in RMT and can destabilize EMC economy easily.

    Mall / Shop economics
    • It's practically impossible to have a sustainable good mall that does not buy stuff
    • It's practically impossible to have a sustainable good mall that does not follow market prices
    • Mall-keeping is hard work playing, it requires determination and persistence
  6. this is a really good guide, thx for taking the effort 2 share!

    i got a very small shop on smp4 but can still see exactly what u mean here.
    SSRCMegaMall likes this.
  7. This is a good guide — I might start linking to it when I comment on the forum section for introductions.
    SSRCMegaMall likes this.