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I know that when creating items that have continuous spell effects you are supposed to look at existing examples to price them, but should special requirements reduce the cost as well? And what's a good way to decide how much to reduce the cost by?

The example that came up was making a ring of nereid's grace (bonus to AC equal to Cha as long as you don't wear armor, Max +5).

A ring of protection +5 costs 50,000 so that's a good starting point, but it doesn't depend on Charisma and it works with armor (nereid's grace doesn't).

Making a ring of nereid's grace based purely on formula ends up half the price to get up to +5 (specifically 24,000).

What's a good price for this item?

Edit Both rings provide the same deflection bonus to armor Edit

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    \$\begingroup\$ Welcome to the site! Take the tour. You may be surprised to learn that the site already hosts a question about pricing a continuous item of nereid's grace here when that spell's combined with another spell on the same item. That question and its answers may be of some help. Thank you for participating and have fun! \$\endgroup\$ – Hey I Can Chan Nov 19 '18 at 6:30
  • \$\begingroup\$ I saw that comment thread earlier but I believe they added in the no armor requirement since then and I figured that was a large enough disadvantage that it should offer some discount. \$\endgroup\$ – Ryan Callaghan Nov 21 '18 at 3:02
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The nereid's grace spell grants a deflection bonus, so (in the hands of an unarmored character with a 20 CHA) this is identical to a ring of protection +5 and it should cost 50,000gp.

The rules for magic item crafting state:

Other Considerations: Once you have a cost figure, reduce that number if either of the following conditions applies:

Item Requires Skill to Use: Some items require a specific skill to get them to function. This factor should reduce the cost about 10%.

Item Requires Specific Class or Alignment to Use: Even more restrictive than requiring a skill, this limitation cuts the price by 30%.

so, following the rules literally, we might subtract 30% from the price, because "must be unarmored and have a 20 CHA" is nearly as restrictive as requiring a specific class. (ie, it would work for most sorcerors and some bards...) This would give a price of 35,000gp.

The DM is not required to follow these rules. In the limiting case, you can imagine a fighter who goes and gets a set of custom magic items crafted: "This is my +5 greatsword which can only be used by someone with the fighter class! This is my +5 plate armor which can only be used by someone with the fighter class!" and thus gets a 30% discount on all equipment. The DM might declare that this is dumb, and rule that the 30% discount does not apply if you're just using it to get a discount on something that's commonly available as a normal magic item.

But somewhere between 35,000gp and 50,000gp is probably right.

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    \$\begingroup\$ This is solid advice. How about graduating the price and construction requirements so those're in line with a ring of protection, too? (Also, I've some nostalgia for the old Champions adage A limitation that doesn't limit your character isn't a limitation.) \$\endgroup\$ – Hey I Can Chan Nov 19 '18 at 16:31
  • \$\begingroup\$ Somehow while looking through the rules I completely missed the comments about reducing price for restrictions, this helps me out a lot! \$\endgroup\$ – Ryan Callaghan Nov 21 '18 at 2:58

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