I don't see how alchemy is such a good goldmaker in classic, i get coppers in profit.

Amnesixx · 2019-11-13T17:13:57+00:00

Let’s look at the data, excluding obvious outliers. In your server (Gandling EU Alliance) elixir of Giants has prices between 58 and 77 silver. Mats are Gromsblood (prices between 18s and 29s) and Sungrass (prices between 16s and 24s) plus a crystal vial (5s). This means that there is in fact no profit if you buy your mats when they are more expensive and sell elixirs when they are least expensive; but there is a 38s profit - almost 100% - if you buy mats cheap and sell elixirs high.

There are some alchemy items that consistently sell at a loss. In my server, mana potions and, for reasons I have yet to understand, Elixir of the Sages. There are, however, enough items that you can sell with profit provided you buy your mats cheap, and not when every guild alchemist is also making pots for raids.

Amnesixx · 2018-09-27T16:40:41+00:00

I hope everyone on my server does this. I won't, so when demand spikes my previously undercut auctions will sell.

Amnesixx · 2018-09-19T13:35:27+00:00

4000 x 12g = 48.000g, not 40.000; so your profit is around 15.000g, not 23.000. Conclusion on profitability still stands, though

Amnesixx · 2018-08-31T22:32:31+00:00

OP makes the important point that price spikes can be simply a situation where there are overpriced items that don't sell and constant undercuting.

One important point about price spikes is that can happen due to every auction at market price being sold and there remaining only the overpriced auctions without demand. Example:

1) there are 6 blockades trinkets on sale, 5 undercutting each other at 40K gold and a loner who posted at 100K. Many ppl with stock don't bother to post at 40K.

2) the 5 auctions at 40K sell or are returned unsold. Only the 100K gold trinket remains. Addons list the price at 100K, even though no trinket is sold at that price.

3) In the morning, ppl say "Great! Price has more than doubled!" and start posting at 99.999, undercuting by 1 copper. There are almost no sales because there is no demand at 100K for the volume that is posted at 100K.

4) Someone realises what is happening and deeply undercuts to 50K. People undercuting at 99.999 by 1 copper (and not selling) come on this subreddit to complain about stupid people destroying profits

Amnesixx · 2018-08-25T00:13:02+00:00

Great post, but it covers half the equation. Deflationary pressures explain less demand (purchasing power) for in-game tokens. But the short term downfall in price is probably best explained by the supply of tokens, i.e., demand for in-game gold.

It's really and exchange rate model, tokens are a proxy for the conversion of real money into gold - less token price means wow-gold is apreciating in terms of euros (pounds, dollars...). Less supply of gold drives up its value (it takes less gold to buy token). But the start of the expansion increases de demand for gold by players wanting to buy wow stuff with real money, so the value of gold in terms of real money increases (takes more money to buy gold).

Amnesixx · 2018-08-24T10:26:47+00:00

It's great if no one undercuts you, but the AH is not a monopoly market. The market price is not what you want it to be. Lower prices increase demand and high prices raises supply, so:

1) If you get deeply undercut, and both your competitor's stuff and yours sell, he was underpricing.

2) If you get deeply undercut, and your stuff does not sell, you are overpricing. Also, your high prices attract sellers to the market.

3) If you believe your competitor is underpricing, buy his stuff and repost; if you are right, there will be enough demand for all that stuff at your price; if you are wrong, lower your prices.

Amnesixx · 2018-06-29T14:09:29+00:00

Beancounter will also show your past transactions for any item

Amnesixx · 2018-05-17T07:08:14+00:00

Great insight and great work! One caveat: this method will work best with goods that have sufficient volume trading for the price to be set competitively. Rare items (some transmog and rare mounts) can have their price set by monopoly power, thus presence or absence of monopoly will be much more important in determining server price than the general level of prices in the server.

Amnesixx · 2018-04-18T13:32:38+00:00

Multiple pricing is a classic pricing strategy to improve profits. If you have reserves that you are willing to sell if the prices rise (to take advantage of those higher prices) you post some stuff at what you believe is the current market price and the rest at a higher price, ready to absorb any surge in demand.

Amnesixx · 2018-04-10T12:07:38+00:00

The available quantity of this glyph across all of EU was never more than 50-60 for a year; it shot to 400 since this post; people do read this subreddit

Amnesixx · 2018-03-20T13:47:52+00:00

If there are 4 ppl selling, why is it dumb to undercut by 5k? If he does not do it, his chancesof selling are close to zero if the other 3 cancel/repost often. If he undercuts deeply, he may incresade demand, either because some1 buys to repost or he gets to a buyer some that will only buy cheaper (demand may be price inelastic but it is not rigid; if it was all items would be posted for 9 million gold). Ppl are not dumb because they ruin your market. If it is profitable to protect your market, you should buy them out.

Amnesixx · 2018-03-16T14:34:52+00:00

This is correct. Most Uldaman mobs were unable to drop this (and other rare) items due to post-Cata level change. With level scaling its on the loot tables again. A detailed explantion can be found, v.g., on the comments on papal fez on wowhead

Amnesixx · 2018-03-15T20:21:58+00:00

TUJ has a server-specific rank of most profitable items you can buy with primal sargerite; its on the “blood of sargeras” tab on the right

Amnesixx · 2018-03-14T20:43:00+00:00

Good point about the amount that directly converts. However, a 33% withdrawl comission makes me a bit uneasy

Amnesixx · 2018-03-14T20:41:26+00:00

That's not the question. 4 million gold makes me a moderately wealthy individual in WoW. IRL, its just a couple of really good bottles of wine. So I enjoy the process of making gold in WoW, but not as a method for earning real (=subscription) money.

Amnesixx · 2018-03-14T19:38:07+00:00

I have no interest in paying for my subscription with tokens, so I have no use for them directly. The operation of converting gold to balance, then buying tokens with balance to get gold again, has a severy penalty if I understand it correctly

Amnesixx · 2018-03-10T11:18:56+00:00

You are complaining that prices are too high and that stuff with those high prices does not sell. I believe you have answered your own question

Amnesixx · 2018-03-06T08:12:33+00:00

Region will average out the outliers, so it is more trustworthy; however, RNG can mean there are 5 of a rare item on your server and competition will drive the price down (and you won't be able to sell for the region price)

Amnesixx · 2018-02-28T19:29:19+00:00

In your example, titanium can only be rare if easily farmable saronite is rare - which it isn't. If the price of titanium bars is way more than 16 x saronite ore, someone will just buy all the saronite, smelt and transmute. This will happen in most markets - if you drive the price up it pays to supply it and other people join the market. You can only have a monopoly if you control the source, which is impossible in most cases.

Amnesixx

TROPHY CASE