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Thread: Competition?

  1. #1
    Kathroman's Avatar
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    Competition?

    This has been my first expansion experience, but I have really been surprised by the lack of competition on my server. I would have expected that more people would have been interested in taking advantage of this time-sensitive opportunity, and was really hoping for more AH PvP action.

    What has been your experience? I don't know if it has just been me, but I haven't run into very many obstacles so far.

  2. #2
    What markets are you in?

    On my server we've got idiots selling rare cut gems for 80 apiece.

  3. #3
    Kathroman's Avatar
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    My main markets are Inscription, Leatherworking and Enchanting. I suppose part of it could be that I'm on a low-mid population server, but I guess I was just expecting things to be a bit crazier...

    Just wondering if this has been different from previous expansions or if the best is yet to come. Don't get me wrong, I'm perfectly fine to be bringing in competition-free profits, but come on, who doesn't enjoy a good AH battle - accompanied by some well-thought-out hate mail?

  4. #4
    Valdron's Avatar
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    but come on, who doesn't enjoy a good AH battle - accompanied by some well-thought-out hate mail?
    <---This guy doesn't.

  5. #5
    Zenit's Avatar
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    Quote Originally Posted by Kathroman View Post
    who doesn't enjoy a good AH battle - accompanied by some well-thought-out hate mail?
    I got to run heroics, raid to attend, rep to grind, work a IRL career, kids to raise, wife to pamper....no I rather not spend time engaging in a artificial price war.
    Suspended for now - Zenith's Round Table.)

  6. #6
    Athkatla's Avatar
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    Quote Originally Posted by upfromtheashes View Post
    What markets are you in?

    On my server we've got idiots selling rare cut gems for 80 apiece.
    Not too surprising. Ore pays for itself off the green gems; blue gems are pure profit.

  7. #7
    Belzebutinov's Avatar
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    Quote Originally Posted by Kathroman View Post
    Who doesn't enjoy a good AH battle - accompanied by some well-thought-out hate mail?
    I'm with Valdron and Zenit on this one: there are few things I hate more than "a good AH battle". Let me expand on a few reasons I really hate being involved in one:

    • I finished WotLK with 6 level 80 chars, proffs maxed out on each; I'd very much like to get them (and my lower-level alts) to 85/525, and that means spending 2 elements heavily: a) Time - you don't just wake up to a full account of maxed-out chars, it takes quite some work; b) money: they all already have 280 flyers (except for my main and my favourite reroll, both on 310s), but you can bet I'll be paying for craftables one one side, and for whatever it takes to max out their proffs on the other. It's not just stupid spending, it's an investment - but regardless, that means I need cash, and I'm not making the best out of my gold-making time if I'm stuck in a war.
    • An AH war is plain bad business. Which would you prefer? Situation A: you sell your stuff at a 500% mark-up, with little to no competition. Situation B: you spend hours un-listing, re-listing and undercutting because some $*%@! is undercutting you every other hour. I'll have situation A personally
    • I can hardly think of an AH war situation you can't deal with better by making a deal with the other guy. Unless you really have some beef with that specific person, why not just set boundaries and agree to share the market? If you can't have a monopoly, a cartel is the next best thing, really.
    • The hassle. Oooooh God, the hassle. Having to check the AH every hour. Having to make sure you're not being baited. All that for one tithe of the profit you'd have made alone.



    So yeah, all in all, I'd rather either find my own niches, either have an entente with my competitors, but fighting is just not a profitable use of my limited time

  8. #8
    Quote Originally Posted by Athkatla View Post
    Not too surprising. Ore pays for itself off the green gems; blue gems are pure profit.
    So that makes it good business to screw yourself and everyone else out of profit? Buyers will pay 200-300g for rare gems without batting an eye, but the idiots let them off the hook by slashing prices. They may as well hand out freebies in Org and be done with it. I wish they would.

  9. #9
    Quote Originally Posted by upfromtheashes View Post
    So that makes it good business to screw yourself and everyone else out of profit? Buyers will pay 200-300g for rare gems without batting an eye, but the idiots let them off the hook by slashing prices. They may as well hand out freebies in Org and be done with it. I wish they would.
    Yes. It does.

    It's just about impossible to form a long-term cartel to keep prices high. Basic economics dictates that artificially high prices won't last forever, except in genuine monopoly situations (and even then, rarely).

    Even if buyers WILL pay 300g for a gem, it may be more profitable for me to sell 200 gems at 80g than 10 at 300g. It's all about marginal demand.

    Currently I'm selling some cut gems for under 50g each, and I'm still making a killing because the green gems cover my ore costs. The lower I go, the more I convince my competitors that this Jewelcrafting thing is more effort than its worth and the more they drop out. I've already pushed competitors out of two of my cuts, and those are back up to 200g each and selling well.

    I buy a LOT of ore every day (Average is 25k worth per day) and I need to get rid of all my gems. It's worth it to me to be the "idiot" selling for 80g since I'm an idiot with piles of cash and the piles are getting bigger daily.

  10. #10
    Zerohour's Avatar
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    AH PvP is again, bad business. It only results in having to actually watch your auctions and takes me away from being able to actually play the game. AH PvP is typically between Baddie1 and Baddie2, neither of which can hold my jockstrap in a raid. These people will have more time and less sense about actually making a real profit, they are simply into their scripts which is mindless and madness. Once they figure out that I'm happy with 25% profit margins (which means they don't get to make extreme markups) they tend to go away. I'm the worst to compete with - I've been doing it since Vanilla, I'm patient, and worst of all I'm consistent.

    But yeah, there's lots of competition here, I'm on a high pop server. Competing in this market means that I have to watch the pennies and then the pounds will take care of themselves. I still manually post my gem cuts because I usually will undercut by wide margins just to get rid of the things. I specialize in other markets where competition is less fierce and margins are much fatter.

 

 

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