Starshine
Destructive Bunny
Do you like economics? I hope so, but I'll try and make this as interesting as possible even if you don't.Also Gaia, I have a lot of trades for art right now, don't ban me ok? ; u ;
What is Flynn really? question
Decades ago the toothpaste company Colgate discussed multiple ways to increase their profits, such as advertising more or funding new research and development. In the end the solution was simple, the toothpaste tube's cap was enlarged, so that each time a consumer brushed their teeth, they were using up more toothpaste than before. Requiring them to replace their toothpaste more often and spend more in a year.
See the image on the right for a reference to the size of the cap in decades past compared to now.
A lot of other companies do this, from appliance manufacturers who make washing machines and fridges designed to not last long after warrantee expires, to food producers who reduces the net weight of their goods every year while keeping prices the same.
The principal is the same, getting more profit with the same amount of effort. Or even getting more profit with less effort used than before.
Gaia is doing exactly the same thing. Flynn's booty and chest are the larger cap size of Colgate. The products haven't increased in quality, you aren't getting more quantity, but you are definitely spending more to maintain similar standards as before. This applies to both gold and Gaia cash.
Let me explain, some people use Gaia cash to purchase items they want directly, like evolving items, monthly collectables, and sales such as Black Friday. However only a limited variety of items is for sale in the cash shop at any given time, to get other items they need gold. Those people buy items with the intent to sell so they can use the gold gained on the items available only in the marketplace. This would probably be the majority of purchasers.
Generally speaking, the longer you wait to sell a cash item for gold while it's still in the cash shop the less profit you will make. As more and more people also start selling. However this depreciation only applies to the item you are selling, it doesn't affect gold value, or the value of other items (mostly).
Flynn is different, the more you buy it the more it depreciates, but not only that, because it's a gold generator, the more it's bought the more gold depreciates in value, which doesn't only affect the Flynn's booty or chest items, it affects every single non gold shop item on gaia.With each consecutive purchase of Flynn, 'the bang for your buck' decreases and you are getting less value. With each opening of Flynn, more gold is added into the system and consequently your existing gold is worth less because it has less purchasing power than before.
It's a self defeating item, the more it's sold the more useless it becomes, to counter the fact that Flynn's booty has already become useless and undesirable as a purchase, Gaia created Flynn's chest, with a bigger payout to be more attractive to buyers. Eventually even Flynn's chest will become useless, and Gaia will have to supersize the gold generator once more to keep it relevant.
Why keep releasing it? gonk
1. Almost no expenses needed to make it, just edit existing icons and coding. No need to pay artists.
2. Inflates all existing items, making them harder to buy with gold if your only income is from capped games (zomg/booty grab). Therefore making purchasing GC more attractive as it will save you months of time spent playing games. (This could be why SmashBlox payout is still set to generating 1.2billion a day.)
3. Because items are inflated, they can charge more GC for them in flash sales. Eg: Kanoko's dark reflections costed 2mil in the pre-Flynn era, where GC exchange rate was roughly $10 = 1mil. So the most they could put that item on sale for is $15. After Flynn, the item has inflated a huge amount, so Gaia is now charging $25. The item hasn't changed, you aren't getting more poses. If you sell it for gold to buy other items your purchasing power is still the same. If you sell it for gold and then keep the gold then your purchasing power will steadily decrease. Yet now it can be sold at $10 more.
Will this continue forever? emotion_0A0
Short answer: Maybe
Long answer: Maybe not.
Unlike Colgate, which expanded the cap size very slowly and gradually over decades, Flynn is ballooning without restraint in a few months. The different between the two is subtlety. When done right, taking the easy road isn't noticed at all, and consumer satisfaction remains the same. When this strategy is used overtly and without pause however, it becomes highly visible and consumer satisfaction will go down.
No one likes paying more and getting less than before.
Which brings the sustainability of the item and even the site as a whole into question. Being a community is a double edged sword, this site is only fun as long as there are other people here to share it, the forums are almost entirely user generated content. Causing dissatisfied people to quit makes the community less diverse, interesting, and fun. Which in turn causes more people to lose interest. It's not a cycle you want to be in.
Congrats Gaia, I won't be quitting, because this whole economic experiment thing you have going on is hilarious to watch if nothing else.
Toothpaste photos courtesy of Colgate, Flynn is drawn by Fayren Pickpocket, and can be found on her DA account fayrenpickpocket. I always credit art and images emotion_yatta
Discuss:
Your projections for the Gaian economy
Your thoughts on the less is more sales pitch
Your plans for your Gaian life in the future
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Edit: This article Gataka linked is a great read on models of monetization in gaming. What works and what doesn't.
gataka
Quote:
With each consecutive purchase of Flynn, 'the bang for your buck' decreases and you are getting less value. With each opening of Flynn, more gold is added into the system and consequently your existing gold is worth less because it has less purchasing power than before.
" A supremacy good is a good or service that reduces the value of all other linked goods and services in its space, including itself. "
He uses it in another context, sort of, but I find the concept useful :U
Anyway, what concerns me most is that Gaia seems aware of the self-destructing nature of Booty & Co, yet they still use it. With "moderation" I presume :/
Editx2: Icysnowgirl has drawn a cute comic about this topic! Visit her comic thread here.
