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11-18-2010 @ 11:06AM
the economic argument is that a middleman (warehouser in this case) will smooth out the prices in the marketplace, by slurping up excess supply during the rich times and putting warehoused goods on the market during the lean times. Both consumers and manufacturers lose some of their POTENTIAL value/profit to a middleman but they GAIN the ability to run their business consistently with out having to close up shop based on swings in the ask/offer price of a commodity good. If they run their business consistently, they make more money due to increased volume of sales.of course, an astute farmer/crafter would read this argument and realize that warehouse space in wow is basically free and there is no reason not to be your own middleman. Everyone who farms or crafts should always be watching the price of mats to determine if they should be selling/using the mats or warehousing them until their potential value is increased.
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