Register
Page 1 of 3 123 Last
Results 1 to 10 of 23
  1. #1

    To smash the cartel?

    First, hello, Consortium readers, first time poster, I've been reading the site for a few months now, and have been working to make so cash in WoW for about 6 months. Now onto my question.

    So, the jewelcrafters on my server have and continue to have a cartel on the burning shadowspirit meta cuts. They're all keeping them posted at 1000g bids with 1000g buyouts, so none have an advantage. Now, I have a friend who is a jewelcrafter, but has no interest in making money, he found the cut. Here's the fun part, he'll cut my gems for free, in bulk, and won't charge me anything for it.

    The question is, do I just undercut the cartel by a little, and break it up, but try to stay in the market longer? Or would it be wiser to smash it to bits with some serious undercuts, hoping they buy up my undercuts, while I keep feeding them cut gems? I tend to not stay in one market too long, which makes me lean towards the latter. Currently, uncut gems go for about 200g each, so posting at 632g or so is still a 200% ROI per gem, with such a starved market they should move pretty well, even if the cartel doesn't buy them up.

    Just looking for your thoughts, not sure how long I have to take advantage of this opportunity, before someone else beats me to it.

  2. #2
    Belzebutinov's Avatar
    Posts
    738
    Reputation
    52
    Tagged in
    140 Posts
    Add to this user's reputation
    Personally, I'd do a bit of 2 things:

    1/ Undercut them on the AH, but not necessarily by as much as you suggested. If they've been consistently selling at 1K, you should be able to sell at 900 with no problems.
    2/ Bark a bit in /2; let people know you have the cut and are selling it for less than they are. This way, you go undetected by the cartel as, unless they are in a capital at the time you're barking, they can't know you're undercutting them.

    Or you could just be lazy and ask to join the cartel :P
    Don't forget to hand out reputation to people whose posts enlightened you!

  3. #3
    Prancer's Avatar
    Posts
    175
    Reputation
    19
    Tagged in
    57 Posts
    Add to this user's reputation
    I'd undercut them, ruin their market. But that's just me, I don't like it when other people steal my profits!

  4. #4
    Namssob's Avatar
    Posts
    1,485
    Reputation
    123
    Blog Entries
    1
    Tagged in
    454 Posts
    Add to this user's reputation
    Quote Originally Posted by Belzebutinov View Post
    Personally, I'd do a bit of 2 things:

    1/ Undercut them on the AH, but not necessarily by as much as you suggested. If they've been consistently selling at 1K, you should be able to sell at 900 with no problems.
    2/ Bark a bit in /2; let people know you have the cut and are selling it for less than they are. This way, you go undetected by the cartel as, unless they are in a capital at the time you're barking, they can't know you're undercutting them.

    Or you could just be lazy and ask to join the cartel :P
    I agree with the above. Keep in mind over time, more drops will be found, and even your 900g undercuts will get undercut.
    How To: Create And Sell Profession Kits ---- MoP Shuffle Flowchart ---- Article: A Case For Dual Gathering
    "Never underestimate the sheer amount of derp the majority of WOW's playerbase possesses." -- Belrandir
    "They could have offered me free ERPing in Goldshire with real women over Skype for the next year and I would have passed." -- Zerohour
    "Scissors are OP. Rock is fine." --Paper

  5. #5
    Zoxy's Avatar
    Posts
    210
    Reputation
    26
    Tagged in
    6 Posts
    Add to this user's reputation
    This happened to me this week so I crashed the market down to 200g a cut and then after both my competition decided to stop listing i then reset the market to 500g a cut .

    Its risky what I did but I was still making profit and it paid off this time.

    It allowed my to have full market control over the weekend but i expect them to appear again shortly

    Zoxy
    http://tradingwithzoxy.com/ Offering the Latest Gold making Tips and Addon Guides

    Check out My Addon Guides - Trade Skill Master Complete Guide - MySales

  6. #6
    Belzebutinov's Avatar
    Posts
    738
    Reputation
    52
    Tagged in
    140 Posts
    Add to this user's reputation
    Then again, in order to do that, you need to have the stocks and funds to take out your opponents, and that's assuming they have shallow pockets. If you have a small stock and they have a lot of cash waiting, they can buy out any of your low-priced auctions. I certainly agree that it's a method that can work extremely well, but for it work you need to be sure that the odds are not stacked to heavily in their favour - which judging by how Pheonix described his situation, seems to be the case, so I'd be careful trying that
    Don't forget to hand out reputation to people whose posts enlightened you!

  7. #7
    Zoxy's Avatar
    Posts
    210
    Reputation
    26
    Tagged in
    6 Posts
    Add to this user's reputation
    Yea it should come as a big warning as I have over 300 meta gems and a good stock of cash ,also i was willing to sell at a loss to push them out
    http://tradingwithzoxy.com/ Offering the Latest Gold making Tips and Addon Guides

    Check out My Addon Guides - Trade Skill Master Complete Guide - MySales

  8. #8
    Yea, the cartel was about 5-8 people posting, so, I knew as soon as someone broke it, there'd be a pretty hefty price war, and all of them had more cut then they were bothering to post, no way I had an opportunity to drive them out.

    But, it doesn't matter now, the cartel ate itself, one of em posted a copper under, and now it's down to 740g per gem, and I suspect it will tank further as most of them don't know about it yet.

    Half my goal was just to break it up, bring back the regular AH trends to the cut, I was really hoping to make some profit out of it tho...

    Thanks for the response tho guys, I do post in AH then bark in trade in things I'm in for the long run, was just hoping to do a little smash and grab on the market.
    Last edited by Pheonix; February 14th, 2011 at 11:00 AM.

  9. #9
    Could you recruit some of your friends to help you monitor the market and break their oligopoly? You would in essence be creating 'fake' competition but it could give the appearance to them that their game is up.

    Just seeing 3-5 new names in a market over a period of a few days may cause them to do something drastic (possibly buy out the market to try and maintain control) - except all of the other sellers would be linked to you, which would just mean a higher sales volume / profit for you?
    The guild is not composed of heroes. Heroes are what the guild kills.

    100k - 3/3/12

  10. #10
    jchurch5566's Avatar
    Posts
    46
    Reputation
    0
    Tagged in
    4 Posts
    Add to this user's reputation
    Hi guys,

    Most RL companies work under the pricing idea of 'whatever the market will bear'. That is how we should all approach marketing in WoW, ... 'whatever the market will bear'. Also, our WoW market operates with few rules. That makes it hard to control a market. It is very hard to control one item, except for short term (a few days). If you have significantly lower costs you can lower the market price. But why would you want too? You should only think about your bottom line. You shouldn't care about anyone elses. So, you should always price your goods at 'what the market will bear'. This is a very nice situation for you. You can undersell the compitition while still maintaining a nice profit margin. Of course your compitition will react. Just as you are now reacting to their marketing stategy.

    You cannot take their goods from them, they will still have goods to sell, no matter what you price yours for. I would undercut your competition's prices by a moderate amount. Then, when they react, undercut by a moderate amount again, etc. You will evertually get to a 'balancing point' where you all have a market share, but your profit margin will not be as high as it is now and neither will theirs. In the end, you will find that by undercutting your competition's pricing you are really taking a portion of their market share (a good goal).

    Also, if you are planning to sell your goods short term and then move on to other things, you will just be giving back the market share that you 'won'. Even less reason for severe undercuts. When you leave, your competitors will go back to their current pricing policy with the same market share that they have now. Your severe undercutting idea will have accomplished two things. Lower profit margins for you and lower profit margins for your competitors while you are 'in the market'.

    This implies that 'severe undercutting' should only be done when you are trying to gain a larger market share.
    Last edited by jchurch5566; February 14th, 2011 at 11:35 AM.
    Women and cats will do what they want. Men and dogs should just relax and get used to it.