For my next campaign in my own custom setting, I plan to reduce wealth completely. I don't like how the average wealth per level of an adventurer is extraordinarily different than the average wealth of a commoner. Sure the adventurer should be more wealthy, but IMO the economy shouldn't be based on magic item prices.
Magic Items are very rare in this campaign too. I want to make magic items mean something again, not just something to throw around or sell when you get it. Now in order to purchase a magic item, you need to go to the one guy in the whole country that can actually create one and he tells you to go find the material component he needs to make the item. That could be the gall bladder of a Chimera, so you need to go find a chimera and kill it to harvest the gall bladder. So magic items are now fueling story instead of being something that is handwaved when the party gets back to town.
Anyway, the advice I'm looking for is what various pitfalls or benefits you see to this type of campaign? If you have gone through something like this, what have your experiences been?
Below is a list of changes to the system that I see would need to be made in order to pull this off:
Characters:
Characters gain maximum hit points every level.
Characters start with 25 point buy.
Characters start at first level with 1/10th the wealth.
Character Wealth is computed differently. There is no scale of Wealth per level. Adventurers typically have more wealth than common folk, but it is not extravagant.
NPCs are not typically high levels.
Equipment:
All prices of basic equipment, weapons, and armor are reduced in price by a factor of 10. For example, a dagger costs 2sp while a longsword costs 15sp and a chain shirt costs 10gp.
Masterwork Quality component for a weapon is computed as 400 * original cost of weapon.
Masterwork Quality component for armor is computed as 200 * original cost of armor.
Masterwork Quality component for item is computed as 100 * original cost of item.
Skills:
Craft Skill to compute weekly progress is computed as DC * Result in copper pieces. If the value exceeds the price of the armor, weapon, or item, then it is completed in one week. If the value is double or triple the price, it is completed in ½ or ⅓ the time. If the value is below the price, it is not completed, but progress is made.
Magic Items:
Magic Items are extremely rare. Almost no one can make magic items. Magic items have non-ordinary components which are hard to come by. A quest is typically needed to get the components to forge the magic item.
Magic Items have no price as they are so rare and are typically bartered for.
Coinage:
Gold pieces are uncommon and Platinum pieces are rare and commonly mistaken as Silver. An appraise check must be made to identify a coin as Platinum.
Governments mint only copper, silver, and gold pieces. Unknown coinage is weighed by the merchant.
Monsters:
CR for monsters is increased by 2. This makes various monsters much more dangerous.
CR for Humanoid NPCs is typically not increased. They rarely are given magic items to be dangerous.
Encounters must be designed carefully to ensure that the party is not put arbitrarily into a TPK situation. A wraith should not be a random encounter if the party has no magic weapons.
Spells:
Detect Magic cannot be used to identify items but can be used to determine if an item is magical.
Identify can determine what an item is, but it costs 100gp to Identify one Item.
Fabricate can be used to make a permanent item from existing materials, but it requires a Craft or Spellcraft check to make a complex item.
Minor Creation or Major Creation can be used to make a temporary item no materials, but it requires a Craft or Spellcraft check to make a complex item.
Raise Dead, Resurrection, and True Resurrection require material components which are rare. Diamond Dust is not easy to come by, let alone finding enough to pay for the spell. Death is typically a permanent event, while only the ultra rich can afford to pay for it.
Restoration can be paid for with uncommon components, not Diamond Dust. In addition, no matter the usage, it costs 100gp of said component for each casting of Restoration.