Driving AH prices down...

90 Undead Priest
5795
Wouldn't those "barons" just buy your low cost items and resell them at a higher cost?
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90 Blood Elf Warlock
16070
Wouldn't those "barons" just buy your low cost items and resell them at a higher cost?


Yes, that's exactly what we do.

I will vastly undercut if things are ridiculously priced. My usual markup is 10-25% on most crafted items. I deem this fair (my own personal opinion to fit in with my own sense of ethics). However, I won't sell things for a loss. I mentioned margins in an above post. Knowing your margins means that you're always selling your goods for more than it cost you to produce said goods.

There's also a "sweet spot" for crafted items which I believe my 10-25% profit fits within. If the items you list are to high people will simply gather their own materials and find someone to make the item. It takes time but items that cost far more than the materials make this a feasible alternative. If they are priced to low you are not making enough potential profit to make it worth your own time and to have to pay the listing (and relisting) fee. You want to make your markup high enough to make it worth your while as a seller but not so high as to drive the buyer into finding another alternative source for the goods.

Auction House buyers are aware that the goods listed are a bit more than the minimum they might acquire the item for if they leveled a toon, farmed the items and did it themselves but the convenience factor makes it worth that added cost. However, there is a tipping point where price outweighs convenience and if you are selling consumables, you never want to go above that point.
Edited by Higeki on 5/8/2013 3:06 PM PDT
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90 Undead Death Knight
6755
My mother died of Alzheimers Disease in 2007.


Cheap retort nancy.
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90 Undead Death Knight
6755
05/08/2013 02:12 PMPosted by Waste
Farming things yourself does not make them "free."

If you understand that concept, you are well on your way to being a "one-percenter" of Azeroth.

Fortunately, no matter how many times it is said (or even explained), people don't get this concept at all. Which is very nice for my pocketbook!


No farming doesn't mean the items are free... in my case, I simply gather ore and herbs while I am doing my dailies on my four gathering toons... I don't go out of my way, just simply gather when i see ore or herbs while doing dailies... by the end of my dailies on my toons, i'm left with tons of raw materials... often times 1000s of ore and herbs. Free? No.. effortless? yes. so when I post my items on the AH, I do so understanding while not free, they're as close as I can get without running a bot program.
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90 Undead Death Knight
6755
LOL... when this thread started, a Stormy River's Heart was selling for 250g each... today, because I kept posting lower priced items and others dropped their prices to compete, the price is down to about 49g each.... So, the ah flipper who bought around 20 Stormy River's Hearts at the start of this thread is now out a bit of coin for the foreseeable future... sure the price will increase at some point, and then I'll post another dozen or so below the new price and keep the market flooded with low priced Stormy River's Hearts... (I'm doing this to eight other rare quality gems, but this is the gem that dropped the furthest in the week I've been doing it).
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90 Undead Warlock
7455
As long as my stuff sells and I'm not making a loss on it, I really couldn't care what the price is. Sadly the economy on my server is terrible and nothing sells. I really need to move to a server with a higher population.
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90 Gnome Warlock
1565
I never understood this community's near obsessive desire to screw themselves just to feel like they're "sticking it to the man".
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86 Goblin Hunter
670
Please do sell at 1/2 price so I can flip it and make a profit. LMAO.
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86 Goblin Hunter
670
Wouldn't those "barons" just buy your low cost items and resell them at a higher cost?


Quiet!
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90 Goblin Rogue
14040
On the one hand, keeping supply and demand perfect, not flooding the market and keeping prices high artificially is a ton of fun and gives me ludicrous sums of gold for myself and several of my guildies.

On the other hand, they have no reason to get mad at you. Their job is to keep prices prohibitively high so they get more gold selling fewer items. This benefits them and only them. Lowering the price benefits a ton of people.
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86 Goblin Hunter
670
On the one hand, keeping supply and demand perfect, not flooding the market and keeping prices high artificially is a ton of fun and gives me ludicrous sums of gold for myself and several of my guildies.

On the other hand, they have no reason to get mad at you. Their job is to keep prices prohibitively high so they get more gold selling fewer items. This benefits them and only them. Lowering the price benefits a ton of people.


This is true, but you can only lower the price incrementally. If you slash the price you just benefit the barons who resell. I get more joy by buying underpriced items then by selling. The gold really has no value, it's the joy at playing the market that drives barons like myself.
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90 Dwarf Paladin
3485
I remember on my Horde toons I was leveling BS and always had a lot of excess stone that I would dump on the AH just to sell. Someone noticed me in Trade and started making fun of me because he was constantly buying out my stone and relisting it higher. Basically we had a healthy wholesaler/retailer relationship that was mutually beneficial and instead of thanking me or trying to prolong it, or at the least keeping his mouth shut, he chose to tip me off instead.
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86 Goblin Hunter
670
I remember on my Horde toons I was leveling BS and always had a lot of excess stone that I would dump on the AH just to sell. Someone noticed me in Trade and started making fun of me because he was constantly buying out my stone and relisting it higher. Basically we had a healthy wholesaler/retailer relationship that was mutually beneficial and instead of thanking me or trying to prolong it, or at the least keeping his mouth shut, he chose to tip me off instead.


yeah, because there is tremendous profit to be made in stone. :rolls eyes
Edited by Superbus on 5/11/2013 3:19 PM PDT
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86 Goblin Hunter
670
I asked for this thread to be pinned so I can read it everyday for a laugh.
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