Dealing with Loot

[Major]

Alright, so one thing I've hated as a DM was trying to figure out how to deal with loot. How to keep WBL close, how to determine what they find, etc.

As such I was rather curious how others did it. I've seen a few methods but each one I had reasons for disliking.

1) The random chart in the DMG. Too random, too stupid, end up with useless **** that nobody even bothers to pick up.
2) DM randomly gives out stuff the party wants. Aside from the 'how convenient that this dungeon just so happened to have ____" it becomes a guessing game of figuring out what to give out.
3) Just saying "Here is WBL since you leveled up. You gained X gold. Go spend it" This kinda breaks role playing and such. The party just randomly got X gold from a king, mercenary, etc? Just seems a bit weak.

So how do you guys come up with ways to give out loot where it is still relatively random, but doesn't doom certain classes and characters because they never find anything?

[BlueInc]

The best bet is a mixture of the above.

-Use randomized lists to come up with unusual items that may have plot hooks. Example:
DM: [Checks table] You find a statue of a horse and rider.
Player: What's it made out of?
DM: [Checks table] Um...Silver.
Player: What does the rider look like?
DM: [Plots] It's a bugbear, but it's in full armor of Pelor with a shield with a sun carved in it.
The players then can make a sidequest to find out about the noble Bidruk, a bugbear who forsook evil and campaigned against his former goblin allies to save the city in years past. However, a vindictive LE hobgoblin lich has plans to desecrate his body that the PCs can thwart...

-Occasionally give players things that are good for them. If they're part of a larger treasure hoard, it makes sense that something useful might show up.

-Give players money so they can pick what they want. Make sure they have opportunities to spend some of their money on RP related items.

Also, give your NPCs and villains items that your characters want/can use and use them against your players first! Sure, your fighter wants a +1 flaming longsword, but it's much more fun if he has to win a duel with a rival for the right to wield it. Of course your wizard wants that Pearl of Power, but it will be all the more sweet if he takes it from the enemy spellcaster's cold, dead hands.

[mohdri]

One of the things I did for my PC's in an Eberron game was give them a kind of patron. It is a character very close to the overarching storyline who commissions the PC's for various tasks but for most of the time is in the background. He provides the PC's with specific gear for his tasks (which allows me to fill in WBL gaps) but also provides a means of dumping any unwanted items as well, for above average prices, so the PC's don't see anything as usless.

Artificers with Retain Essence also helps, too (which I have one of as well).

[ericgrau]

The treasure tables also give out an expected treasure value for custom loot. You can also stick with random loot but give the PCs ample opportunity to sell it all and buy what they really want or hire an NPC to craft it (for more expensive things). I like this method best b/c then PCs can debate between using an oddball item and selling it for half. It can also introduce random crud that you never knew was useful.

Pro-tip for the PCs: Expendables are not bad and should not be automatically sold. Expendables are awesome. People tend to hate them as if they're money down the drain, but that's not so. Most adventures are so fast paced that getting several expendables, as in every single one that you'll ever need, tends to be far cheaper than a permanent item.

In line with your at-level-up option I have a low magic item point system in my sig that accomplishes that without straining believability too far. Many items still need to be found in treasure, but it gets most of the +X items out of the way by making them point-bought character abilities instead. That solves about 2/3 of treasure.