In addition to the OP's system, to encourage players to trade and make it easy for every one of the players and the faction,
add a gold pool named "Treasure Chest"
So you make some goods or gear, go to a place and sell them go back and forth or anywhere the player wants to go for a trade.
Any one who sells anything puts his gold automaticly into the Treasure Chest.
Then he can craft trade goods again. When he crafts gear he takes gold out of that Treasure chest. This in combination perhaps with a set amount of gear to be produced, he stops crafting when that amount is reached.
Buying gear to equip armies in addition to the crafted gear can only be done f.e. by rank 7+
This way all members have more to do and are free to do it on their own without the need of a massive organizational overhead and factions are still able to plan with the gold at hand in the Treasure Chest.
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also i'd like to see that the efficency to produce a product goes down when the goods needed for them are not reaching a needed limit. Players who are working there would reduce the goods but not or not so much the efficency directly.
Prices should still have prosperity influence but also when demand is high(less efficency, many players working there, no goods coming in) then the price should go up. When the village is with constant support of goods(stockpile?) and therefor there is a high efficency, the price for the goods mainly needed there to be sold should go down.