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  1. #1

    Why the massive price cut?

    I've been a serious glyph maker on a high -volume US-PVE server for about 2 years. I just transferred my operation to a medium volume US-PVP. When I got here the glyph prices were what I consider normal 50-200g depending and in constant flux give or take 50g. When I transferred I bought out the market in herbs milled for a day and made 3 of every glyph. Volumes were low but looked normal for a couple days. i cancel/repost 7-12 times a day. Yesterday two of main competitors dropped almost every glyph to 30g. This was almost a 100g undercut in some cases. I don;t understand why you would rob your self of so much profit so i figured it had to be a tactic designed to drive me out. I am curious as to what this tactic is called, what they are trying to do, and how I combat it. Any advice would be welcomed.

    Thanks,
    Koramoor

  2. #2
    Xsinthis's Avatar
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    We were just discussing this in IRC and there are several reasons ranging from trying to piss someone off, to trying to move glyphs faster to focus on DMC production to being the white knight and doing it for the "good of the server"

  3. #3
    DiscordDave's Avatar
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    Same thing on my med pop server. Glyphs had been that way for a good LONG while, then one moron cut everything to 50g, and then the mindless undercutters drove prices way below that. I cut my losses and moved on to another focus for now. I'm hoping the prices can rebound and I'll start on them again.

  4. #4
    The way you've described it makes it sound like a tactic intended to drive you out. Most scribes these days know what they're doing, so I suspect that's the most likely scenario. Maybe keep going for a little and see if anyone changes behavior. If not, you might abandon the market until prices go back up, then resume posting. This tactic would frustrate them the most because they would have to keep adjusting their approaches; if they're trying to drive you out with low prices what they want is for you to simply give up.

  5. #5
    zenga's Avatar
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    Well if you re-list up to 12 times a day people can see you as a camper which is a threat all in a sudden for their business. Both from a time consuming point of view as from an earnings pov. A way to beat campers is to use the 'deep undercutting' strategy: you just list them at a fixed price, way below market price. Rather than gaining 75g per glyph, they are happy with 20g as well. One motivation can be that the seasoned scribes on your new server have a deal/know eachother and they don't want to share the market with a new aggressive player, hoping to knock you out of business. It's very possible they speculate that you - after a server transfer - have limited funds, and they hope you buy the cheap glyphs out, after which they just keep listing for low prices, hoping you eventually get a huge stock and a cash flow problem.

    I've used this tactic on several occasions, and it worked sometimes. I stopped micro managing the glyph market months ago, I just have 2 toons who each have 140 (I believe) different glyphs in their bags, for each glyph a stack of 20. I just list 1-2 times a day with 1c undercut, with the obvious bottom and fallback price, and that is the same for each glyph. Once every 1-2 weeks I check what sells well with mysales and make new glyphs, mainly based on what stacks are low (if I have 17 left of glyph A, I don't craft any new ones, but if I have 3 left f glyph B, it means they sold well and thus craft 17 new ones).
    Now that is a very comfortable situation for me, with 2 main non agrressive competing scribes.

    If the new guy in town starts to undercut me (us) after each list, whole day long, I'll just list each and every glyph for the same low price. I still make a profit, all be it less. And the guy will eventually realize that keep undercutting for such small margins ain't worth the trouble. He runs out of cash if he is new, or he will just give up.

  6. #6
    I agree, they are most likely trying to drive you out of the market, hell, I know I would if someone were camping all day. For me the glyph market is just one strategy to offload my extra blackfallow ink from the DMF. Because I get most of my herbs from farmers at set prices, I can drop every glyph on my server to 19g and post a wall of 20 of each glyph. I have enough ink that I could keep this up for about a month without even having to look for additional resources, just what comes in normally.

    My best suggestion is drop out for a week until they reset, then start reposting single stacks no more than 3-5 times per day and they are more likely to leave you alone. If you come out swinging, they'll swing back, and they have the benefit of being established on your server. If you don't make waves, they probably won't waste time and you can all co-exist, especially if you can vary your times from theirs.

  7. #7
    I'm actually new to the glyph business, but I've been doing DMF since the second faire in Cata. I started outsourcing my milling and ended up with 8k Blackfallow inks - normally I'd just run those into inferno's but the the BF/Inerno market doesn't justify a 10:1 ratio, so after some prodding from people here I decided to try entering the glyph business. I made 20 of each northern research and book of glyph mastery glyph and listed 2 of each with a 1c undercut. I sold about 7 glyphs from the first posting and was undercut on everything. At 27g / glyph it's equivalent to inferno ink, so I listed 4 of every glyph at 30g each. I got a lot more sales and a lot of people didn't undercut me. After a few days I started walking my price from 30 to 40 then 50 then up to 100g. One of the larger glyph sellers contacted me and proposed whitelisting at 300g with one of the other big glyph sellers onboard. Since then I'm enjoying about 3k/ day in sales.

    So, it sounds like people are trying to run you out. If you have the patience, you can just wall slightly above mats until they decide to cut you in. The key is persistence though. You can just vary your strategy, but stick with it till they stop trying to drive you out.

  8. #8
    Quote Originally Posted by Astraeus View Post
    If you have the patience, you can just wall slightly above mats until they decide to cut you in. The key is persistence though. You can just vary your strategy, but stick with it till they stop trying to drive you out.
    He's coming from the weak position of being new from a server transfer, so he doesn't have a network of farmers yet. If he tries going head-to-head, if the competition is even half way competent, he'll lose until he can establish himself better IMO.

  9. #9
    Depends on the server and the bankroll of course, but setup some TUJ notifications and you can probably get plenty of cheap herbs to supply yourself with glyphs. You don't need to replenish unless they sell and you're posting above your cost, so you'll slowly make money. If your resources are limited, restrict the glyphs you produce. 200 glyphs x 10 of each @ 30g each is 60k. Sounds reasonable to me, but you're right, that might not be for everyone.

  10. #10
    @Koramoor - they do it to frustrate you and push you out of the market. 70% of AH PvP is psychological.
    Retired - I blame Kathroman for everything.

    (that's a joke, eh)

 

 

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