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Thread: Brokering

  1. #1

    Brokering

    This idea came about because I'm never one to pass up a good deal on goods, but I find I don't have time to process all the goods I buy on a daily basis. Some might say that I should buy less if I can't use it all, but I hate to see the competition have the opportunity to get the deals I get. This mainly relates to ore shuffling, but I suppose it could extend to any similar process.

    Now, after getting into the shuffle I enjoy it, and I've found some good dealers for my ores, 30-40g per stack. I also try to keep the AH to at most 50g per stack by buying everything under that price. But what does a greedy goblin do with all the ore that is just backstock? I can let it rot (why buy it in the first place?), stop buying for a while (possibly lose my farming contacts), AH it with an alt (deal with competition and fluctuating prices and the AH cut etc and lose more time), or what I've recently started doing.

    I'm calling it brokering, it's similar to flipping or resetting a market, but I think it's different enough to earn it's own name. It shares the aspect of resale with flipping and shares resetting theme of keeping things priced high.

    Here's an example of how it works, take the obsidium shuffle, we know about how much 1 stack is worth on average, 54g if you were to just cut and vendor every gem. Alot of people know it, and offer to buy it below this price, I've seen people offering 36g-50g recently. I then turn around and make a deal with the person offering 50g a stack, I make between 0 and 20g per stack I sell to them. Most will earn me gold, just a few earn only a little, but overall it works out to about 10g profit per stack, a 25% ROI on average, and since I know they're shuffling, I know they'll be back for more, and so long as I can keep the AH price high enough that my price is still a deal, or at least convenient for them, when they come back, I'll pocket more dough

    My only conflict with this is that I end up fueling my competition, since I still shuffle myself to list on JC dailies and for enchanting mats. But, if I can find enough buyers for the ores that I get at good prices, maybe I'll move out of the shuffle altogether, or just cut/vendor.

    Brokering is far less time consuming than shuffling for sure. Since neither my suppliers or buyers deal with the same characters there should be no way for the two to cross paths, and neither should get suspicious. It's quick easy gold, just to be the middleman.

  2. #2
    Mugsley's Avatar
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    First off, if you use an addon such as TSM/APM/ZeroAuctions, you can quickly and easily list ore at market value and consider it a passive income stream.

    If you want to process the ore without shuffling, use a Blacksmith. If you don't have one, start looking to recruit one. For example, you can make Skeleton Keys with Obsidium, or just sell the Folded Obsidium itself.

    Similar for Elementium, where you cam move the ore into bars and, for example, belt buckles.

  3. #3
    I can and do use such addons, but with the plummeting price of ore if I don't buy it cheaply, it will just continue to tank, and/or the results of the shuffle will tank as people buy cheap ore and shuffle it. Why list it at 40g per stack, when I can buy 100 stacks, making the new lowest 50g per stack, and resell it all and more to a lined up buyer for 50g per stack? I'm not undercutting the AH, I'm artificially driving up the price so that my arrangements are still a deal to those I sell to.

    It's not that I'm having trouble finding a use for the ores, it's a time constraint issue, with the time I also devote to other markets, it leaves me with less time than I would like to shuffle, and while I could add on more venues for ore to be processed through, it would ultimately take more time.

    This is more a GPH view, if I can make 10g on a stack of ore by simply buying it and mailing it and I can do that with 300-400 stacks a day, that's 3000g-4000g for something like 9-11 mins of work (1min per page of mail, and 2 to remail, 1min random overhead). Works out to like 20k-22k GPH. It's not a sustainable GPH, but the profit to effort ratio is very very high.

    If a person doesn't have alot of time, but has connections, it's pretty lucrative.

  4. #4
    Obsidium Ore -> Obsidium Bar ->


    As you can see, Obsidium Ore can be used for more than the shuffle, if you feel you cant output more because the market is full atm, use some of it to make other goods that sell well.

    How much time do you spend looking in trade channel for someone who wants to buy that ore for 50g a stack? Isn't it better to sell a stack @ ah for 50g, take that 47.5g you get from it, and leave it at that? If you buy out all the ore for 30-40g a stack, you sell it for 7.5g profit minimum, instead of 10g, but you dont have to keep that watchful eye on trade, and you dont have to spend those minutes actually doing the trade and whispering back and forth. I would just funnel some ores into other goods, and/or flip it @ ah. But maybe thats just me..

    Edit: I see its a matter of GPH thing for you. If you already got the connections, and the guys you are selling to view you as a farmer, it seems like a nice deal, just C.O.D. to them all the ore you buy cheap. I would still call it flipping though.
    Last edited by Sponsor; March 28th, 2011 at 03:49 PM.
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  5. #5
    I agree it has lots of uses, and I have used most of them.

    It's similar flipping, but usually flipping is buying a rarer item cheaply to hopefully resell it higher so some unknown person. This is connecting a known buyer to a supply and taking out a cut, brokering.

    Also, I just wanted to name something, and I thought it was kind of unique.
    Last edited by Pheonix; March 28th, 2011 at 04:14 PM.

  6. #6
    Mugsley's Avatar
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    I get your point and it's actually quite an original one. I think you misunderstood me. In your original post, you stated you could buy directly from suppliers for 40g/stack and the AH has the ore at 50g/stack, but it "takes too much time to post it" [paraphrased]. I was pointing out you could use TSM/APM to post it faster.

    Again, that is a very original idea. My personal issue (on my server/faction) would be the time I would have to invest to find a volume buyer to take the ore. After that it is most definitely turnkey. The question is what will you do if you ever lose that buyer?

  7. #7
    Ah, yea, I see the misunderstanding, it frequently tanks to ~36g/stack every morning. Lots of posts from few posters, with small price gaps in between.

    If I shift away from the shuffle and lose the buyer, I can always go back, since I'm still buying ore below floor price. I certainly don't intend to ramp up purchasing unless I can acquire another buyer or two. Given the situation I'm in, if I didn't have a buyer, I'd probably stockpile it for a rainy day when my suppliers get banned.

  8. #8
    Yes even if something terrible would happen and the price would dramatically drop(which isn't very likely), you could still cut that ore into green gems, vendor them and have profit if you really have bought them at 36g/stack.