World Of Warcraft, WoW Hand Armor

Wednesday, February 23, 2011

A "How To" on Selling Goods - 4.0.6 Enchants Example

This post is once again directed from a reader email that I received yesterday. Mila asked about the new Enchant formulas and how to price the scrolls. Even though this post is geared toward them, the information contained here will work with any "rare or epix" item (you just might have to use your imagination a little).

Whether you are a blacksmith, tailor, leatherworker, or what-have-you, take the info below, and just "tailor" it to you and your prof. While reading, you will see how I set market prices for "new" items (after patches, after new BoE's come out into the AH). I will cover a few things here: pricing, AH comparison, estimating worth/value, and dealing with buyers in /tells. Without further ado, here's you's go!

So with the drop of 4.0.6 recently, we came across a few new enchants:

Enchant Bracer- Agility    +50 Agility
12 Hypnotic Dust
2 Maelstrom Crystal
15 Volatile Air

Enchant Bracer- Major Strength    +50 Strength
6 Hypnotic Dust
2 Maelstrom Crystal
25 Volatile Earth

Enchant Bracer- Mighty Intellect  +50 Intellect
4 Hypnotic Dust
4 Greater Celestial Essence
2 Maelstrom Crystal
15 Volatile Water

Now if you were one of the first to pick up these enchants, you are probably freaking out wondering if you are ever gonna get your "investment" back. Whether you paid 10K, 15K, or 25K for the "drop", the market is still pretty slim right now. When you factor in each one is 2 Malestroms, and those are probably sitting around 2-3K right now (on the low end), you are looking at a 6500g enchant. Crafter cost....

So now we have to decide a few things. One, what profit margin you are looking to get. First, you will need to check to see if anyone is selling the enchants in your AH. If you are on a US server, check The Undermine Journal to see what the traffic is on the 'chant.

"Alto, there are a few I see, and they are going for 7K"

Keep one constant at that price. A 500g profit (or 499g99s99c) is better than zero. In this case, I do not want you to buy out the 7K and list for 10K. Go all the way down to 200g profit. I would not recommend to go lower than that. Peace of mind.

"Alto, I haven't seen any yet. None. What prices do I sell them for?"

One and a half to twice the mats cost (remember, that's YOUR mats cost). So if you pay out of pocket 4.6K, then you should cut that in half (2.3) and add that to your inital investment, so you end up selling on the low end for 6.9K.  See where I am going with this? Pretty simple. If one sells quickly, then what we will do next is add 1K. If it sells, then add another. If it doesn't, drop it back down. Okie Dokie?

"Alto, after listing, I am getting tells with folks having mats, and will tip for it"

This is a great thing. I normally charge half my markup in the AH. So using the numbers above, you can safely charge 1K. Now here is the kicker. If you keep an eye out on your "popular" guilds, and see that they are one of them, do this....."I have been charging 1K to enchant this, but I will cut it in half if you holler at your buds. Anyone in your guild can get one for 500g if they supply the mats". Now "big money" might not tell his/her guild, but you put a bug in their ear, and it's still freebie profit. Feel me there?

"Here we go, I got another one for you....Someone isn't wanting the chant, they are wanting it on a scroll. They said that they are putting it on their "main", and offered a 500g tip.....they also mention that the one you have listed in the AH is too high, the mats only cost 4.6K."

Ugh. Bad situation. Before saying "yes" right away (I just told you to take 500g for a tip...didn't I?), you can assume that this guy is going to try to flip it (remember you have one in the AH for 2.3K more than the mats, right? If not, he just reminded you...). So you get 500g, he gets 1800g, and you lose a sale because he just undercut your auction.

In this scenario, I would tell him "I am sorry, but I am the only one with this chant that is selling the scrolls, and I hate doing this, but I can go 1K to put it on a scroll for you (that way if he does sell, at least you got 1K, and you can undercut the shit outta him for lying to you...), or if you log on your main, I can chant your bracers for 500g."

"Alright, you are doing good covering scenarios Alto. Now I got one for you.....You get a tell saying "why would I pay 6.9K for that when i can get XXX for a couple hundred gold? You aren't gonna sell that, how low can you go on it?"

This is probably the worst situation for a sale. How good of a salesman/woman are you? I would have to respond with "The reason the lesser chant is XXX is due to that's an old enchant. If you want me to sell you that one, I have one I can sell you for XXX (cheaper than AH). The reason that scroll is so expensive is that it's the best. Have you seen the materials to make it? I am barely making profit. So if you want to heal/dps/tank/ at Wrath level, by all means, it's up to you. But you have to pay for the best, and these are the best. Welcome to Cata bud!"

Now thats a long tell, but you get my point. You want to let them know that if that is too rich for their blood, you can sell them the "lesser" scroll (more sales). Then you want to tell them mats cost (they might not know). Then you want to tell them that there is little profit (you aren't lying. you are still at a loss from the 15K you paid for it....).

Now I want to reiterate a few things here:

One, you NEED to have one of all your major "crafts" in the AH at ALL times (as you can afford). You should know your market to see what is selling, if not, you can check around (The Undermine- even if you are on a EU server, just to check the "going rates" and the average sales per day).

Two, DO NOT sell for a loss, unless in dire need. I would hope that you have listened to me about investing in anything, no matter what it is, that you should NOT put more than a third of your bankroll into a "quick flip" (herbs, ores, volatiles- at a "farmer rate" or CHEAP...), and if there is a chance that it won't sell fast (epix crafted, the rare scrolls above, etc), don't invest more than 10%. This way, if it doesn't sell right away, or the price fluctuates, you aren't freaking out. You still have your "stockpile" of gold to invest in other areas. Feel me?

I hope this helps clear up a few things about newer items and how to go about selling them. Pricing, AH comparison, estimating worth/value, and dealing with buyers in /tells.

For my seasoned (no, not with salt or pepper, the "pro") readers, do you see anything I left out here? Did you actually get through the whole post? If you did (haha), I bet you are thinking about something right now. How about tossing a comment for the folks out there? Thanks ahead of time for the support!


Anonymous said... Reply To This Comment

While not specific to the enchants, I made a lot of gold in the first couple days of 4.06 flipping the cut metas cross faction even though initially I did not have access to the cuts. I found the sellers on one faction and cut a bulk deal with them on the basis that I was moving them all cross faction and would be no competition. So keep an eye out for those opportunities as well or do it yourself if you have the capital to make 2 enchants, 1 on each faction.

Stede said... Reply To This Comment

Seems like you're getting some cool questions, Alto.

"You aren't gonna sell that, how low can you go on it?"

When this happens to me, I link the mats needed to craft and maybe say what I had to d to get the recipe. I might think of explaining to them that this is the Cata BiS enchant - there's people who are buying it because they're serious about min-max'ing their gear.

If I'm not feeling nice, I'd just say, "Dude - I'm the only person selling this enchant. I'm not about to start giving it away."

The Gold Queen said... Reply To This Comment

When we see very expensive items for sale, and the opportunity to make a lot of money, it is all too easy to get really excited and lose our business heads. To charge enormously stupid prices that just won't sell, or to spam the AH with millions of these expensive, sell one or two, and pay a fortune in AH fees.

The advice I would offer is to keep your cool, to remember that the business strategies you use with lower price items apply with larger ones, and to use your common sense.

Anonymous said... Reply To This Comment

All it true if you have low or no competition. On our realm, we got 3-4 heavy competitors on any crystal made enchants. On current ah prices you can craft crystals around upto 1100-1300g per. Crystals in ah are around 1500g. Above example enchant go around 4000g with fast undercutters.

If you are lazy and not undercut nonstop, that means you wont sell any enchant on ah. And if you dont hear anything from trade chat, that means you gont get any sales from those things. Its reason why i skip crystal market for now. Demand is low, supply is high, too risky to buyout sources.

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