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  1. #1

    Asking For Advice on competition

    I've been visiting here for quite awhile to get tips on gold making but this is my first post. I don't consider myself a 'goblin' and only really work in one market, Gems.

    I'm on a high pop server with a several competitors but for the most part it's a pretty friendly market. I have 7 steady competitors but we all seem to work together quite well. There are several other 'part timers' in the market, too many to count, but they only post occasionally and don't effect things too much. The 'steadies' and I will do complete buyouts when the part-timers get things too low, usually on the weekends, and reset the market on certain cuts to keep a high profit margin.

    The problem is a recent entry into the market. As soon as someone resets the market on a cut he immediately reposts with 5-10 gems 50-80g below where we've set the market. Now I understand prices are going to gradually go back to the normal range, it's expected, but this guy immediately pulls it back down to rock bottom. He posts all day and night and is involved in several markets.

    I don't mind getting undercut, it's expected, and up until now the Gem market has worked quite well. I just don't understand this guys thinking. If he's involved in as many markets as TUJ makes it appear, you'd think he'd understand the concept of resetting a market.

    Any advice/thoughts?

    Edit: It's been going on for about 2 weeks. My first thought was fire-sale, but it's gone on too long. I'm also amazed at the amount of cuts he seems to have, he's had to been JC'ing for quite awhile but only recently entered the market?
    Last edited by Cariessa; May 13th, 2011 at 03:41 PM.

  2. #2
    Kathroman's Avatar
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    Find a second market, for starters. I'm sure you now see the difficulty in limiting yourself to just one source of income. 80/20 rule, right? Gotta have other options.

    That said, what does he do when someone undercuts him? Will he continue to drive the price down, or is he content to just keep you all out of your profits? You need to try and figure out who he is trying to work - is he fighting for sales, or is he trying to get you guys to buy him out? Different strategies will apply, depending on what his goals seem to be.
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  3. #3
    He is probably dealing in very high volume. As far as being a recent entry to the market, he could be a server transfer.

  4. #4
    Kathroman, I guess I technically am involved in more than one market since I shuffle. I only have one other 85 and she's my herb/miner (druid of course), my 82 does my DE'ing and a few scrolls, but my main market is gems. I have alch/jc on my main for xmutes. My point is this isn't killing my income outright, just my main market. I'll try undercutting him this evening and see what he does.

    Calianna, server transfer actualy makes a lot of sense now that I think about it. It's possible he brought over a heavy stockpile and is trying to deplete it but that's gotta be one huge stockpile.

  5. #5
    Drrwho's Avatar
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    He could honestly also have a mining bot, that mines during the night, then another bot of sorts to prospect the ore... results? Huge stock of gems and really "no cost" to him. The bot did most of the work. While this kind of thing makes me mad too (there are a few on my server that do that with enchant scrolls... it's totally idiotic if you ask me), it could be a definite possibility.

    If that is the case, how do you combat it? Tough one to answer there. I tried various things on my server with the enchant scrolls and no luck. The person did finally just disappear though, haven't seen any scroll postings since, which makes me think they might have gotten the ban hammer.


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  6. #6
    Kathroman's Avatar
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    JC is tough, since it doesn't really take a lot of effort to get a decent stockpile going. If you have other options, I would at least take a closer look at them for the time being, let some of your other competitors deal with him for now . You also mentioned he was in some other markets, how do those look? What seems to be his strategy there? Could be that since he sees most of his own income elsewhere, he's viewing this as a sort of bonus opportunity and doesn't feel the need to get too invested in it. If that's the case, you might just need to get him out of the market by going underneath him for a bit. If he seems to be serious about getting into this one, look for opportunities in his other markets, as they might see some neglect with his time being more focused on gems.
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  7. #7
    Vince's Avatar
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    How expensive is ore on your server? And at what prices is he posting? If his gems are selling above the cost of a stack of Elementium Ore, he's still making good profit. He could be deep undercutting you simply to scare you out of the market. Is it working? If so, he's winning. This guy could have a contract going where he buys stacks upon stacks of ore from farmers and just prospects absurd amounts to keep his stockpile up. Depending on his commitment, your best bet is to just undercut him until it's no longer profitable to do so. See what he does when you undercut him. And if you have the capital, see what he does when you buy him out. My guess is the guy just has a steady supply, lots of time to prospect, and is going for high volume sales with low competition if he's successful in scaring everyone else away.
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  8. #8
    I just reset a cut, watched him repost 48g under so I undercut him by 2s... he's still online but has left my undercuts, along with other undercuts by other players, alone.

    Seems pretty involved in the BS and LW armor market, mostly BS, lots of 339 pvp pieces, neither of which are markets I can currently touch. Might go see how flasks are doing....

    Thanks for the replies guys, I appreciate it

    Vince: ore runs right at shuffle prices here... 27-34g depending on the time of day.
    Last edited by Cariessa; May 13th, 2011 at 05:25 PM.

 

 

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