Friday, 31 May 2013

Weekly Gold Report 31/05/2013

Well this week's been a busy one for me.  I had to spend most of Thursday and Friday in town so missed a few sales but I'm still up a reasonably good amount:

Current Balances:
Bank Balance - 490,000g
Altoholic total gold - 29,330g
Incoming AH gold - 2450g

Grand Total: 521,780g

Broke the half million market pretty early into the week which made me very happy, but I decided to buy myself a 40 grand gift off the Black Market Auction House to celebrate after seeing a nice pair of boots up.  I followed that with the purchase of a competitors guild bank for 6k and dropped another 10k on a personal project, then scrambled to make it back above 500k before closing my books for the week.

On the guild bank note, I'd been looking to buy a higher level guild that already had 7 tabs or that I'd be able to buy 7 for,  so when I saw a fringe competitor looking to sell theres I immediately jumped on my unguilded alt and told her I'd take a look.  Unfortunately the guild was only level one and the name wasn't out of the ordinary, but considering she was a big herb seller and a part time gem seller she did have a good stock of Cata/MoP herbs and almost 500 green quality gems among other things.
I appraised everything conservatively at 5955g and offered an even 6k which she readily accepted, and with which I should hopefully make at least a 100% return on.

On the personal project note..... well you'll have to wait and see.  I've heard and read about the concept  in a few different places but I want to try it out for myself and see if it's profitable before I say much else on the topic.  The information I will leak is that it takes an exorbitant amount of preparation and almost an entire guild bank worth of storage space, so it may a take a while before I see results.
If things work out I'll do a nice big beefy article about it with links and numbers and razzle-dazzle; and if it flops I'll quietly sweep it under the rug and we can all forget I ever mentioned it.

That's all for tonight folks, if I can think of a worthwhile topic I'll have the usual Saturday post up tomorrow.

-Thairus

Saturday, 25 May 2013

Public Relations

This topic's likely been covered a fair bit but I wanted to talk about it anyway: Your public image.

Getting People to Like You
When one's been selling for a long time you tend to gain a reputation.  This can be infamy, as with the case of Phatlewts transmog selling character, who is apparently quite renowned on his server as "the guy with all the overpriced greens".  However there's also the low end of the scale where you gain a bad reputation, which can come from a few sources:

Consistently massively overpricing items:
"They always charge too much, I know not to buy from them or else I'll be paying too much."

Being surly towards customers:
"A 5% discount? Not on your life."

Trade Chat:


Over time your handling of sales and conversations can garner you either a positive rep, bad rep, or keep you quietly anonymous, here's a few positive examples.

Personal Selling
I had a guy whisper me asking if I could sell him a Dragonling at a reduced price (costs maybe 75g to make on my server, prices were around 600g each), and so I agreed to toss it to him for 400g, and asked what cogwheels he wanted.  When we traded I'd pre-gemmed the Dragonling for him and told him not to worry about the cost.  Usually this is the point where I'd feel that I completed my good deed for the day (minus the whole 250% of material cost thing) and never hear from the guy again, however about 10 minutes later one of my friends wsp'd me about the guy.  Apparently I hadn't noticed the person I was selling to was in a levelling guild that one of my friends had an alt in, apparently shortly after the sale he had told the entire guild to buy from my bank toon if they ever noticed the selling name because "I was a really nice guy.".

Now this isn't something that's always going to happen, but according to my friend there was around 25 people on at the time, that's 25 people that now might be willing to pay another gold or two to specifically buy my auctions if I was undercut.  The lesson to be learned: Never underestimate word of mouth.


Trade Chat
I can't exactly cover all the aspects of trade, the horrible amorphous monstrosity it is, but I can assume most of us in the gold making business only tend to take to trade chat on two occasions:  To advertise a particularly unsought item, or to make a (hopefully) witty remark.  When advertising an item it's good to have catchy sales pitch to get people interested besides the usual "Blah-Blah-Blah in AH" that oozes across trade in a constant flow, however too much elaboration can turn people off as well.

Bad:
Buy the new [Stick]! With this wooden harbinger of doom you'll be scoring critical homeruns all across Azeroth, your foes will run from your glory, all will look up to you as a paragon of all that is righteous in Warcraft. Legions of women and grovelling fans, and - etc,etc,etc.

If your sales pitch goes like this you better be selling the Ashbringer.

Good:
[Stick] now on the AH, unique transmog skin that overwrites the current enchant graphic. Perfect for those of you tired of watching the same pulsing weapon glow for hours on end.

To the point and it gets across why they should want it without saying "BUY IT".

The only advice I have for non selling comments in trade is to keep it high class.  Witty remarks that aren't particularly biting will maintain at least a positive reputation, and helpful comments will help accrue a "Nice Guy" image.

Say: "I'm sorry sir, I'd love to have a battle of wits with you, but you appear unarmed."
Rather than: "And what do you know about it, idiot."


Pricing
This is the most intangible of the topics, on the one hand we want to demand a good price and get our monies worth out of the time and effort we put into acquiring an item for sale; even if it was 10 mouse clicks to buy / repost an item, or (the horror) 20 clicks to buy mats, craft and resell.  Market prices on high demand items can be hard to raise, you can of course reset market prices a little higher every time, but people are used to seeing a certain price range.  If a gem usually sells for 80-200g and suddenly you post them for 750g, you may see a desperation sale or two, but generally you'll immediately get undercut by a large margin from people who think "No one will buy at those prices, I'll sell quick if I post a lot lower!".  In this way posting at slightly higher prices (think 5-10%) can gradually get people used to paying / selling for a higher price, however this only applies to high demand markets.

For markets with intangible prices, it's both easier and A LOT harder to change prices.  Items that are hard to obtain and have no competition allow you to charge whatever price you want, within reason;
However with items like transmog, if people see "Pimpin Purple Armor" up for 7500g they might be interested, until they shop around a bit and see "Shiny Shoes" and "Kitten Mace of the Fluff" up for 500g.  They'll opt to go with the less appealing, but significantly cheaper option in a case like that, but if they look at the other items and see a price of 6000g then the armor doesn't seem like such a big leap.

In this way I can use the transmog market on my own server as an example, with four major sellers present when I first entered the market.  Three people with a 50/25/25% share of the market selling almost every piece for 300-750g and one guy posting everything for 2000-4000 (we're talking hideous gear up for an arm and a leg).  I started posting items at slightly higher prices and slowly the rest of the sellers started to raise some of their prices, now the 300g or less price range is reserved only for the moth eaten transmog and the general price range for medium to high tier transmog is 500-1500g, with upper tier items priced for 2000+.  The prices aren't exactly ideal but this shows how over time pricing can slowly change the norm.


In conclusion
Keep in mind in your everyday activities that although each individual encounter may not make or break you, over time your actions can have a large impact on your business. Be the person that makes people go "Oh yaaa, that guy!" not "Ugh...that guy."

-Thairus

Friday, 24 May 2013

Weekly Gold Report 24/05/2013: Getting close

What else need I say about this week? 5.3 made my mailbox explode from the sheer amount of sales on Tuesday and sales have been up ever since.

Current Balances:
Bank Balance - 430,000g
Altoholic total gold - 41,150g
Incoming AH gold - 2370g

Grand Total: 473,520g

Getting close to the half mil mark.  A second week of a 100k+ increase in liquid gold isn't half bad, especially considering the amount of purchases I made this week.  According to TSM I've spent 30,000g in purchases, and that doesn't count the personal trades I did, which I mentioned in the previous post where I bought out most of a larger guilds gem supply for 29k.  A day later I had the GM of the guild ask if I'd be interested in going through their guild bank and buying anything else interesting, which I of course had no qualms about.  After getting an alt into the guild and getting full access to the bank, sans withdrawls, I went through and split all the items in every tab into 3 groups:  Interested in buying, keep/not interest, and vendor trash.  I ended up appraising everything very conservatively (taking the price I'd like pay and dropping 25-50%) and ending up with a price tag of 3200g, then told the GM "Well looking at it I'd like to pay 3200g for the lot, so lets say 3400g" I think he appreciated me going through and sorting the rest of the bank for him as he readily agreed to the price.  The items I got from the deal were mostly odds and ends that I don't usually sell but thought I could get a good price for or put to good use, additionally there was 2 uber blues and a few pieces of transmog.

Back to purchases / sales, seeing as I've bought 30k in items, + 32.4k in unrecorded trades that means I had around 162,400g in sales this week, that's a lot of merchandise.  Considering I've had such a good week I think it's time for another Flips of the Week! (And it's not just cause I feel guilty about forgetting it last week.)

Flips of the Week
Item - Buy Price / Sell Price
Lionheart Blade, Reborn - 120g/3750g
Tiny Green Carp - 75g/ 4275g
Recipe: Flask of the Titans - 3g/ 750g (tad low resale)
Grakl's Gleaming Talisman - 150g/ 3500g
Scalebreaker Axe x 2 - 100g/ 1750g ea
Porter's Tooth Marked Mace - 50g / 2250g
Silver-Thread Armor - 3g / 750g

Going to have a new post out tomorrow if I'm not dead after work, have a great weekend all.

-Thairus


Wednesday, 22 May 2013

O it's on....

Well my gem market competition (the twit that tries to wall me) showed up again, after thankfully being absent for the release day of 5.3, and once again immediately tried to wall me.  Usually I'd keep my mouth shut and let the him dick around, as he's none too bright and thinks he's getting one up on my even while he does exactly what I want him too.  Basically I keep my mouth shut so he doesn't realize what I'm doing to him. 

Anyway enough stroking my own ego, I whispered him something along the lines of "Do you really want to do something like trying to (ineffectively) wall me when demand is this high?".  After getting a few responses that would make Call of Duty chat and 4chan nod in approval, including the implication that I had a VERY healthy love of my dog, I decide to give him an ultimatum and present him with 2 choices.

1. Work things diplomatically.
2. Continue as is and find out how low I'll go.

Considering how he's reacted / messaged me in the past (including a constant stream of insulting me then logging off, logging on 10 minutes later and repeating) I assumed he was both unlikely to take option 2, and mostly likely and arrogant little bugger that didn't realize when he was digging himself a hole. 

After waiting 10 minutes with no response I went ahead and undercut him again, to which he dropped prices to 90g ea (As I said in my prior post I had everything at 150-350) which I undercut, and so forth until some of the gems hit 80g each, at which point he whispered me "LOL all undercut, now you godda watch the AH all night", well that's the family friendly version of the message anyway.

How to handle it:
I figured I'd take this opportunity to point out what all the possibilities of how things can play out are, and how I intend to deal with them. Hopefully anyone having the same problem will find this useful.

1. He continues undercutting me down to around 70g.  This is slightly above my crafting price so I'll quite happily buy him out and reset the market at this price.  Who cares if you're paying your competition, you're also getting cheap stock if they're stupid enough to go this low.

2. Before option one takes place I've pulled all of my stock after he logged, sales will either burn through his 2 deep wall with how demand is currently, and anyone that undercuts him I can buy out.  All I need to do is watch my posting scans and only post ones that he's sold out of.

3. In the eventuality that he logs back on, undercut him ASAP to make it seem like I'm playing along with his little game. He drops prices further and I get closer to being able to take option 1.

Now depending on how much time people have this may not be viable, but this covers all the bases pretty well.  He keeps undercutting me, I get cheap stock, I win.  He doesn't come back on, prices recover, I win.  He logs back on, continues to think that I'm an idiot, and continues the process, I win.

Even though buying out his stock is giving him cash, for him to restock he has to buy materials at the raw material prices that I personally inflated, meaning for every gem I buy out I get stock I'd buy / craft anyway, and he has to spend an additional 10g per gem on materials.

The trick to dealing with competition: Don't let them realize they're digging their grave until you're sitting at the edge of the hole with a load of concrete and smiling at them.

-Thairus

Gem Scare

Well like most people that were in the cloud market yesterday and today I was riding on cloud nine.  Prices had been sitting at around 70-100g each on gems and I took the liberty of resetting all the good, and even tangibly good, gems to 350g a pop, and proceeded to sell them like got cakes all day.

Priceline Negotiator (tell me someone gets that reference):
I've heard varied results but as of 10am going from 12pm when servers came back up yesterday I've had sales of 29,780g with most of that coming from the gem market.  This was well and good until about 11pm when I saw someone spamming "[Gem] in AH".  This started to worry me after about the 20th gem had been linked so I checked out a few of his prices.  Every single gem had been undercut by 30-50g, and I knew I had maybe 2-3 hours until the guy that does a blanket undercut at 2am popped on and locked in the prices.  Crap.  So I messaged the seller and suggested he repost at higher prices, as buying him out would have cost me a good 40k, to which he replied that he was transferring his guild to a different server in 2 weeks and was liquidating the guild bank contents to make some cash for when they hit the new server.  After chatting with him for a bit I decided to wait for TUJ to update and give him a quote to buy all of his gems in a package deal + 300g to reimburse his posting costs, to which he was interested but had no idea what TUJ was.  When I gave him the quick and dirty on what TUJ is and said it'd update in roughly 30 mins he said that unfortunately he had to get up for work in and wouldn't be able to stay on that long. Crap x 2.  After contemplating my options for a bit I looked over his auctions again and found that most of them were the same as the ones I was selling (aka the good ones) so I asked him exactly how many gems he had on the AH to which he responded 134.

Me: "Well for 134 I can do....lets say 10k, for the lot of them"
*5 mins of no response*
Me: "Actually considering the effort you'd put in to cancel em, lets go 12k"
Seller immediately responds: "Ok 12k sounds good."

So hoping I hadn't just shot myself in the foot I emptied my bags and made my way to Stormwind while he cancelled all the auctions and traded him 6k up front 6k after.  He inquired as to whether I bought raws, which I was of course interested in for the right price.  He presented me with:

River's Heart (booo) x 51
Primordial Ruby x 51
Sunstone x 75
Wild Jade x 36
Imperial Amethyst x 14
Vermilion Onyx x 14
+160 green gems, 90 of which were mixed colours

Make or Break:
Although the blues aren't my cup of tea they would sell....eventually, and the rest were always in high demand.  Though mixed colours are my favourite buys they made up the minority of the transaction, but I offered him 14k for the lot.  Unfortunately he's good at math and realized he wasn't exactly getting screwed, but that he might be sore for a few days anyway, and offered 18k, to which I got him to agree to meet me in the middle at 16k.  After trading most of the gems he tossed in 2 cut vermilion onyx, that he said he'd forgot in the first sale, I'm always one to appreciate honesty even if I'd likely never buy from him again so I tacked an extra grand onto the second sale and wished him luck with the transfer.

Aftermath:
Long story short after chatting for a bit I found out he was an old acquaintance and we ended up talking for another half hour (of which I admit I spent half of nervously glancing at the variety of cut, perfect cut, and raw gems in my bags just waiting to be audited) before he logged off.  Looking at the gems afterwards I found that he must have vendored all the crap cuts and only sold the relatively good ones, as the lowest selling gem I  could find was going for 120g,  considering I'd paid an average of 89g for them it wasn't half bad.  On reviewing the blue quality gems I found an average buy price (including my tip) of 70g, which is about my crafting price if I  don't count transmute proc's, plus around 1600g in green quality gems.

Overall I stand to double or triple my cash invested, although it'll take a while.  I anticipate that this gamble will pay off as demand should spike within the next 4 days as people who'd held off on leveling their 85 characters till 5.3 will start hitting 90, raising demand on enchants, crafted dreadful and gems.  Considering I kept prices from falling 30-50g across the board, and the point that I sold around 80 gems on the first day, if sales hold I just saved myself an additional 4000g.

I'll call it a win, although I might take a leaf out of GoblinRaset's book and go make myself a drink.

-Thairus


Saturday, 18 May 2013

Competition at it's finest...

Recently an on again off again gem market poster had been showing up again, one of my friends that used to work the gem market before I started gold making had told me horror stories about what she'd whispered him on occasion.  About a half hour ago she whispered me and I got to have the first hand experience.  I'm not one to spread hate against people so the person in question will be referred to as "Bubbles".

I'm too tired to screenshot / blot out all the names at the moment but I just find this too hilarious to believe, so I'll copy / paste the conversation.

*posting auctions*


Bubbles: Really, have you been a jcer for long… rule # 1 Never under cut the biggest bitch on the server while they are still in AH and online

Me: not sure whether to chuckle or facepalm at that one

Bubbles: well sweetie I have been around since the dawn of time

Bubbles: I am one of the Orig jcers

Me: mannerisms imply the dawn of time is closer to early 2000's, but carry on

Bubbles: DIVA was my former name

*ignored bubbles before she gets on a rant*

*5 mins pass till i get wsp'd by an alt*

Bubbles2: OMG Seriously you place me on Ignore lol this should be a blast now a gold capped toon who has been around since noha built the arc versus well you lol happy hunger games, may the odds forever be in your favour

Me: you really logged over for that -.-?

Bubbles2: IGNORED

*Bubbles2 logs off*



Sometimes there's competition that's fun to talk too or match wits with, other times they're a pleasure to work with or compete against.   Then there's competition that makes you wonder if humanity will last past the next generation or two...


-Thairus

Friday, 17 May 2013

Weekly Gold Report 17/05/2013: Busy Busy Busy

This week's been a busy one for me, both in life and in Auction Housing, but we'll get to that later. Without further ado here's the weekly gold total:

Current Balances:
Bank Balance - 330,000g
Altoholic total gold - 42,500g
Incoming AH gold - 1250g

Grand Total: 373,750g

Up 110k gold in one week, around a 42% increase, not half bad if I do say so myself.  I've had a lot of fun on the AH this week, with 3 little side stories to share.

Firstly I got around to heavily leaning on the gem market, crafting a starter stock of 8 of every high demand gem and 5 of all the tangible demand ones. The story here is that around Sunday morning I was sitting on my main bank alt half consciously feasting on a box of Mini Wheats when I noticed my main gem market competition get on.  There's only 3 people besides myself I'd count as major players in the gem market, the guy I mentioned, who's on around 18 hours of the day who I've never seen go more than an hour without running a cancel / posting scan, a second person that only posts once or twice a day late at night, and a part timer that posts 10-12 types of gems every once in a while.  Anyway back to my escapades, seeing my main competition just logging in to repost and having just fully entered the market myself I decided to test his mentality / patience and immediately undercut him every time he posted (for 1c undercut each time). After posting I waited a minute or two and ran a cancel scan, seeing that he'd almost immediately cancelled and undercut me.  Fun Time.  I proceeded to have a undercutting war for the next 20 minutes until he snapped and posted a 2-5 deep wall at 120g across the board (most of the gems being priced at 130-280g each), I was feeling playful so I undercut him once more, at which point he whispered me a condescending insult along the lines of me not knowing what I was doing and logged out.  At this point I would have been perfectly happy to negotiate with the guy after I'd had my fun, however every time he logged on for the rest of the day he'd whisper me another insult or condescending remark.  Continuing on to Wednesday market prices had semi-recovered so I started heavily posting again, although not as aggressively.  My competition seemed like he'd learned his lesson till he pulled the same stunt again a few hours in.  I'm a cautious man but I don't take well to idiots, and so since Wednesday evening have reduced all my posting minimums to my average costs and began relentlessly undercutting whenever he logged on, and plan to continue doing so until I've ridden prices into the ground enough that it's viable to reset the markets.
Among his comments was "Lol, i'm killing you, you can't make any profit!" that was at prices 40g above the current average, hopefully this will be a lesson in caution and tact for him.

My second project for the week was to take the Noah route and craft two of every Crafted Dreadful cloth item after finally learning all the patterns on my tailor. After setting up the TSM groups I tossed everything on the AH and was pleasantly surprised to make 3k in profit the first day.  I was feeling pretty good about it, and it was what was keeping me from taking a shot at the gem market guy until someone popped on and tried to wall me at 125g for every piece.  This proved to be the straw that broke the camels back and, simultaneously with the gem market, I once again lowered all my prices to cost of materials and began undercutting the new target of my ire with the same plans in mind that I had for the gem market.

Last but not least, I FINALLY got my transmog groups set up (as juggling 300 transmog items by hand was getting a bit tedious) and started posting en-mass.  Unfortunately the transmog markets' demand is fairly low on my server so items sell slow and low, but I hope with enough hocking and price hikes I can bolster demand and the generally accepted prices.

Anyway that's all I got for this week, enjoy the May long weekend all.

-Thairus

Monday, 13 May 2013

Easy Sha Crystals

Well I'd been feeling guilty that I hadn't put up a post in a while when I realized I should talk about one of my favourite ways to get easy Sha Crystals, and in turn high end weapon / bracer enchants.

Items that often get overlooked are the level 87, 440 ilvl epic leggings that drop off a few MOP rares, these include:

Spriggin's Sproggin' Leggin'
Qu'nas' Apocryphal Legplates
Go-Kan's Golden Trousers
Silent Leggings of the Ghostpaw
Cournith Waterstrider's Silken Finery
Torik-Ethis Gilded Legplates
Arness's Scaled Leggings
Gaarn's Leggings of Infestation

The thing about these leggings is they will never sell to anyone except morons, the rarely seen level 89 twink, and the knowledgeable goldmaker.  Usually people list them for 1000g or more when they're the only ones posting, to which people who are levelling will offer a slight chuckle before moving on, and anyone at level 90 can buy 458 gear to get more bang for their buck, therefore it'll stay right on the auction house till it either gets undercut or reposted into the ground at lower and lower prices.

The unsellability (hey I made a new word) of it means that eventually you'll end up with a half dozen or more of the same item on the auction house, and people being the "brilliant" entrepreneurs they are will keep undercutting each other till you see all of them at a 200g per, with the occasional ones being posted below 100g when people just want to get rid of them,  but can't D/E them and don't want to vendor them.

The trick here is to watch for cheap ones (Wowuction notifications, Undermine great deals page, staring half crazed at the screen and hitting "search" every 5 seconds) I usually pick up the leggings for 200g or less on my server (in one case buying out 8 at a time, big surprise for some people) and immediately send them off for disenchanting. With the price of Sha Crystals being 400g on average I've just doubled my money, and if I save the crystals I can turn them into the high tier enchants for an even bigger profit.

This being just one example, I hope this'll help people keep in mind to always be on the look out for items that can be used in the enchanting/disenchanting shuffle.

-Thairus

P.S. Also the whole Crafted Dreadful -> Ethereal Shards -> Sha Crystal strategy that's been beaten through the ground and won't be covered here for anyone who hasn't realized it's a thing yet.

Edit: Apparently this's already been mentioned a few times around (I only seem to find these posts right after I talk about an item / strategy, such as with the white bandit mask.....eh well it's still a good one.)

Friday, 10 May 2013

Weekly Gold Report 10/05/2013

Well this week's been a little slow, in addition to me having to babysit my niece for the better part of the week, additionally the market prices have been down so I've been embodying the "shut up and take my money" meme when it comes to materials (got 25 Golden Lotus at about 1/2 of the usual market price), anyway gold total time.

Current Balances:
Bank Balance - 220,000g
Altoholic total gold - 37,500g
Incoming AH gold - 6850g

Grand total: 264,3550g

Only up 59k this week but seeing as I've had a weak week and apparently everyones sales have been down I'll call it an ok.

I'd also like to add a little section to this for my best flips of the week:

Flips of the Week

Tiny Crimson Whelpling - Purchased 500g / Sold 5000g
Dorian's Necklace of Burgeoning Dreams - Purchased 50g / Sold 2500g
Ghost Shard - Purchased 26g / Sold 575g
Masterwork Ghost-Forged Blade - Purchased 255g / Sold 3325g
Bloodrazor - Purchased 6g / Sold 750g (shoulda gone more...)


Once again I'll try to have another tidbit to read out tomorrow, as soon as I think of a topic I can bang more than 3 sentences out on.

-Thairus

Saturday, 4 May 2013

Capital Utilization and Niche Markets

One of the simplest ways to increase your revenues is to add to the amount of items you're selling.  If you have TradeSkillMaster (And if you don't go download it. Yes, right now.) it will display a current total value of the buyout price of all your auctions.  As a rule of thumb, until you hit gold cap the first time I'd try to keep your total auction value (TAV) at around 30-40% of your total liquid gold, unless you're only in markets with a high turnover rate and don't carry very much inventory.

My method for gold making, without getting into the specifics, is to find a new market, toss a bit of money its way to explore its profitability and then work on fully developing it if it shows promise.  For instance let's take one of my favourite niche markets, the White Bandit Mask.  For reasons I can't remember I was looking for a good item to disenchant for Vision Dust and decided to check the comments on Wowhead, there I saw the mask suggested and conveniently already had the pattern on my tailor.  After buying half a stack of mageweave cloth and getting almost a stack of dust from the 4 masks it produced I got thinking that this could be a nice revenue stream if demand was high enough.  To test the market I tossed a mask on the AH for 150g and made another 50 for disenchant, all of this costing maybe 200g.  Though the materials didn't exactly fly off the shelf they did sell fairly quickly for a good price and the rough results were: 200 dust for 2.5g ea, about 15 lesser nether essence for 10-15g each and the 4 small radiant shards which I turned into a Fiery enchant and sold for 250g.

Total investment: 160g~ after additional materials
Total revenue: Give or take 800g after AH cut
Total profit: 640g

In the grand scheme of things this is mere pennies in both costs and sales, however three things stood out for me.  Firstly I had essentially no competition, secondly all the materials were readily available and processing didn't take much time, and thirdly a 400% profit.  A week later I'd added mageweave cloth to my regular materials searches, and it's been a nice revenue source ever since.

Now I'm not saying we shouldn't pay close attention to the main markets such as flasks, inscription, gems, armour, uber blues, etc. However it's always a good idea to try and find ways you can expand your inventory.  Try looking for markets that are unfilled on your server.  Markets with medium to high demand, or with items that are absolutely necessary when leveling a profession.  After finding one of these markets try to see if there's a way that you can easily obtain or produce these items with minimal effort on your side.

Generally the lower competition will mean you can let TSM do all your selling work for you on the side while you focus on keeping a stranglehold on the bigger markets. Though these little markets may seem like they're not worth the time, with the minimal maintenance required to sell in them, you can add as many as you like to your posting / cancelling scans, and eventually all those little revenue streams will add up to a river of gold (niche markets like these make up about 15-20% of my sales).

In summary my point is this: Put as much of your gold to work as you're comfortable with, and then toss another 20% in on top of that. Money that isn't working for you is just sitting there doing nothing, and so long as there's a reasonable chance it will sell, even flipping bulk materials for a measly 5-10% profit is better than nothing.  Now of course this all comes down to the amount of time you're willing to put in, but I'd say the best way is to maximize your profit is to make cash wherever possible rather than focusing on squeezing every last copper out of what you have. If I can take the same materials and make and item that'll make 1000% profit and sell once a week or make a different item that only nets 400% profit but that I can sell 5 times a week I'm not going to save my materials for the higher return, I'm going to produce as many of both as I can sell.

To close with keep this in mind, letting things stagnate is never a good idea and you should always be on the look out for new opportunities, and there's an old economics rule: Keep producing until Marginal Revenue = Marginal Cost, so long as you aren't losing money, you're making money.

-Thairus

Friday, 3 May 2013

Weekly Gold Report 03/05/2013

Yes day-month-year to some peoples disgruntlement, on to the gold total for the week!
Current Balances:
Bank Balance - 180,000g
Altoholic total gold - 24,400g
Incoming AH gold - 1260g

Grand total: 205,660g

Now this may seem like it's not a whole lot of an increase on last week, however some of you may have heard in the round table that I purchased a Big Battle Bear for 58k in the hopes that I would be able to flip it for a 10-40k profit, or at the very least get a nice rare TCG mount extra cheap for my personal collection. The 58k dropped on the bear plus various other large inventory purchases add up to around 70k on just from the big items, which means total sales for the week are around 75,000g. For a 33% return on total liquid assets I'm fairly happy, and hope to bite and claw my way farther into the green next week.

On a side note I finally came up with another topic to write about after having a run of writers block, so hopefully I'll have something interesting up for you all within the next day.

-Thairus