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5-08-2010 @ 4:03PM
Great article. While I've not been in that situation, I've been expanding my markets and the competition is starting to build. This article and the wonderful comments have made me think about my own business plans. I haven't been auctioning long, so I also haven't been that aggressive before, but I do have one question. You mentioned noone looks at the sellers names, and that is partially true. While I don't look at the sellers name specifically, I do notice when someone posts a lot of stuff or is competing with me. I also have noticed some of the crazy price wars that happen. I tend to deal in low volume, high profit margin items (not necessarily high amounts of gold coming in, but steady income at a price to craft 2-3 of the item off the sell of one). In the past, I've had very small amounts of competition and it's usually people power leveling professions. I've had a couple times where my prices slowly inch up and suddenly there is competition until my prices come down. Still nothing aggressive.Now someone is grossly undercutting me and they have the smarts to make more if I buy them out. The undercutting has brought the average price way down. It's still profitable if one sells, but again, we are talking low volume sales. I don't want to give up this market, but now the price is down to 65g when it was 200g last week. I'm considering pulling out until prices go back up or I can keep undercutting until the price ends up at cost at ~40g. Actually at this point, I've profited enough off the item I could accept a loss if it means they go away. I also wonder if I will ever get prices back up or if I can expect more competition keeping the prices down to the smaller margins if it ever gets high again. I've never done this level of economics and have a lot of "feelings" and "intuition" on what I should do, but I don't like basing economic decisions on feelings, so I'm wondering what others think. (It's actually the first time I wish auctioneer did MORE than it does. I want more statistics!)
5-08-2010 @ 5:13PM
That was kind of my problem with the saronite ore situation: I was low-volume. I could circle Sholazar Basin for an hour or so and collect 2-4 stacks of saronite, depending on how many other people were mining at the same time. That was enough for me - farming any longer than an hour has always been mind-numbing boredom to me, so I was content to sell my 2-4 stacks/day and make 40-100/g a day. I was making enough gold for my modest needs in other ways, so this was just one part of my overall income. But then, out of nowhere, here came 3-4 people who were suddenly posting 30-50 stacks of saronite ore a day for 15g and less per stack. Considering these sellers had names like "Afjtyt" and "Jfbrofx", I really suspected botters/gold sellers. Of course, they may have been simply the kind of "disposable" bank alts mentioned in the article.In any case, I couldn't compete with sellers who had that much time on their hands to gather that much ore (or teams all funneling product to one bank alt, or botters, or whatever it was), and my time was worth more to me than what I was now able to get out of it, so I just quit mining. It was no longer worth it.
5-08-2010 @ 7:46PM
Except... when I say low volume I mean the market as a whole has maybe 3-6 of an item and can expect 1-5 of that to sell in any given day. I don't mean I produce low volume. I have 30 in the bank, but I know they won't sell so why waste the deposit? Most of my items have that "only" checkbox in Appraiser checked.Still, I do feel for those that make their daily bread on small farming sprees only to have the rug ripped out from under them by botters and pro farmers. Been there, done that. Now I gather every chance I get while questing, but don't farm like that. It sells eventually and I've found my niche in the market for reliable income elsewhere.
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