I'm honestly surprised that no one has mention the critical point of marketing.Â
People sell at a price they deem they would pay for a product or service, or what others would be willing to pay given their standing point and situation.Â
Now before I speak about what that means, don't run off assuming that you don't want to pay anything thus you have to give it away instead of selling it. That's not the point. The point is that since currency became a thing in history people placed prices on things based on what people would pay for it alongside a profit margin. A simple loaf of bread made by your average joe baker would be cheaper than one that was made by a master baker because not because it's cheaper to make but also because the target consumer wouldn't have a lot of money to buy something made by a master baker.Â
In the case of FFXIV, try and think of it the same way. In fact it's even done in-game in the market board! Sure people undercut and we'll ignore that under the point of using this as an example, but people throw items at a price they would pay for subconsciously if there is no guideline to begin with (in this example it would be "there's items already being sold at X gil"). Have you noticed that if you put an item at a stupidly high price, majority of people will not buy it? That's because it's not set at a price the majority would pay and they will, in turn, look elsewhere to someone that will. There's also folk that bleed gil and would just buy it because they can, but that's a large minority in some cases but not all (I'm looking at you, you damn bustier that was sold for 20mil for the first week of people being able to craft it).Â
Now let's take that out of in-game and more in-lore. In the world of Eorzea, where competition is more remote-based than a simple walk to the market board, the prices would vary but still hold similar pricing because that is what people will accept and pay. Of course the more remote the location is, the higher the price can be due to "remote pricing" (aka "you can't go to another tavern, there isn't one for 200 malms! Now pay triple the usual cost") but again it's always set at a price that people can pay and can afford based on the target consumer. It's why when you're on a 7 hour boat journey the food tends to be 2 to 3 times more expensive than getting it from a shop. You can't find another shop on a boat, you're in the middle of nowhere. It's still affordable however, but most people shy off it because they're cheapskates (like me, fuck on-boat food!).Â
Despite saying all that, you're all thinking "Yeah but it doesn't answer the question. What is the value of gil?". The value is based on the person. A poor refugee would consider 3 gilÂ
(which you could say is enough for a meal for them) an entire day's saving grace, where someone who tends to make millions a day as a high-class merchant would call that "nothing". It's all based on what they are willing to pay for a product or service they want or need as well as how much they actively earn. I don't like comparing it to a real life currency because there is waaay too much room for error (What is the current economic standing point? What is the tax rates on certain products? Is there VAT (Value Added Tax)? To we nee to be mindful of import rates on top of products due to oversea exchanges? What is the current lifestyle and culture of the currency and country?) but at the same time that can be said for comparing currencies in real life as well outside of stock exchanges.Â
That said though you can take what I just said with a grain of salt. I only took higher level economics and business marketing (Equivalent to A Level in England) and it's been years (like a whole 2 technically since I taught it to a class for a whole semester) so I might of missed out some points out of simply forgetting them. That said, it's better to look at it as "what does my character view X amount of gil as" than "what is the value?" as it's usually the best way to approach selling in a non-industrial market (aka local market).
People sell at a price they deem they would pay for a product or service, or what others would be willing to pay given their standing point and situation.Â
Now before I speak about what that means, don't run off assuming that you don't want to pay anything thus you have to give it away instead of selling it. That's not the point. The point is that since currency became a thing in history people placed prices on things based on what people would pay for it alongside a profit margin. A simple loaf of bread made by your average joe baker would be cheaper than one that was made by a master baker because not because it's cheaper to make but also because the target consumer wouldn't have a lot of money to buy something made by a master baker.Â
In the case of FFXIV, try and think of it the same way. In fact it's even done in-game in the market board! Sure people undercut and we'll ignore that under the point of using this as an example, but people throw items at a price they would pay for subconsciously if there is no guideline to begin with (in this example it would be "there's items already being sold at X gil"). Have you noticed that if you put an item at a stupidly high price, majority of people will not buy it? That's because it's not set at a price the majority would pay and they will, in turn, look elsewhere to someone that will. There's also folk that bleed gil and would just buy it because they can, but that's a large minority in some cases but not all (I'm looking at you, you damn bustier that was sold for 20mil for the first week of people being able to craft it).Â
Now let's take that out of in-game and more in-lore. In the world of Eorzea, where competition is more remote-based than a simple walk to the market board, the prices would vary but still hold similar pricing because that is what people will accept and pay. Of course the more remote the location is, the higher the price can be due to "remote pricing" (aka "you can't go to another tavern, there isn't one for 200 malms! Now pay triple the usual cost") but again it's always set at a price that people can pay and can afford based on the target consumer. It's why when you're on a 7 hour boat journey the food tends to be 2 to 3 times more expensive than getting it from a shop. You can't find another shop on a boat, you're in the middle of nowhere. It's still affordable however, but most people shy off it because they're cheapskates (like me, fuck on-boat food!).Â
Despite saying all that, you're all thinking "Yeah but it doesn't answer the question. What is the value of gil?". The value is based on the person. A poor refugee would consider 3 gilÂ
(which you could say is enough for a meal for them) an entire day's saving grace, where someone who tends to make millions a day as a high-class merchant would call that "nothing". It's all based on what they are willing to pay for a product or service they want or need as well as how much they actively earn. I don't like comparing it to a real life currency because there is waaay too much room for error (What is the current economic standing point? What is the tax rates on certain products? Is there VAT (Value Added Tax)? To we nee to be mindful of import rates on top of products due to oversea exchanges? What is the current lifestyle and culture of the currency and country?) but at the same time that can be said for comparing currencies in real life as well outside of stock exchanges.Â
That said though you can take what I just said with a grain of salt. I only took higher level economics and business marketing (Equivalent to A Level in England) and it's been years (like a whole 2 technically since I taught it to a class for a whole semester) so I might of missed out some points out of simply forgetting them. That said, it's better to look at it as "what does my character view X amount of gil as" than "what is the value?" as it's usually the best way to approach selling in a non-industrial market (aka local market).