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  1. #1
    Belsbank's Avatar
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    AH Manipulation Question

    Not sure if I am posting this under the right section or not. Debated posting it under Auction House discussion. If it is wrong place please let me know and I will move it.

    Anyway I have a quick question for you. I noticed another seller on my server who had 2 of several of the new meta gem recipes for sale on the AH. He was selling them for 40k each, while the new cuts are only selling for 600g each. So i whispered him to see if he was interested in selling either of the recipes for less and he said no. He than told me I will let you in on a little secret : "the way to make money is not only about selling the cut gems but also keeping the recipes out of the hands of your competitors." So this in turn led to a rather lengthy discussion where I found out he was advertising in trade and buying every recipe for 10k and than relisting them for 40k. He was not interested in selling the recipe as he just wanted to make it extremely hard to justify anyone else buying the recipe and becoming his competiton in the cut meta market. Right now he has all 3 of the new cuts and I only see 1 other person listing any of the cuts at all. As for the recipes he thinks the price will stay high for quite some time since they are world drops and than any time later he will be able to get his 10k back out of each one.

    I am curious what the more experienced AH people think about this technique. On the surface it seems like a good strategy, but I am not entirely sold on it.

    (additional side note : uncut shadowspirit diamonds are only selling for 100g each right now)
    We live by the Golden Rule. Those who have the gold make the rules.

  2. #2
    Zoxy's Avatar
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    That Is very traditional a market control

    It will work for a few weeks I would expect and if he is buying at 10k each then he only need to cut abou 15 gems to make his gold back

    If you can do it then go for it but it can be a big investment
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  3. #3
    Aeg's Avatar
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    Not just gold, but time investment also. It requires you to be in trade all the time, making me wonder what his gph is doing that.
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  4. #4
    Belsbank's Avatar
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    Quote Originally Posted by Aeg View Post
    Not just gold, but time investment also. It requires you to be in trade all the time, making me wonder what his gph is doing that.
    The time investment would be my problem. I just can not devote that much time to contantly monitoring a market.
    We live by the Golden Rule. Those who have the gold make the rules.

  5. #5
    In my experience getting market control like this can be VERY profitable but the key is to have an exit strategy. He is not going to be able to keep this up forever as eventually there will be too many recipes on the market and paying 10,000 for each one just won't be profitable (not to mention Aeg's point above regarding the time investment as well). If you make a lot of money doing this the first few days it can be very tempting to want to continue on as long as possible. This can lead you to continue to buy recipes even when your sales of gems drop (you just think to yourself that sales will pick up tomorrow). If you do attempt something like this I would assign yourself a date when you know that you will relinquish market control so that you don't end up spending most of your profit trying to retain control of the market.

  6. #6
    Namssob's Avatar
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    This is risky business if you ask me. It is classic market control, but I think people don't do the math on it the way they should. If you look at JUST the gems at 600g each, you have to remember the RAW gems were not free. if they cost 100g for a RAW gem, then the profit on each cut is 500g.

    10k / 400g = 20 Gems to BREAK EVEN on buying ONE Recipe. 40 Gems for 2, 60 gems for 3, etc. This should be easy to do really, but the question will be how long will it last, and can he get a return before the prices fall. He cannot control the market forever, because OTHER PEOPLE will get the dropped recipes and start selling gems, and then post the recipes up for 15k, or 20k, etc. if he buys those, then he cuts into his profits a great deal.
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  7. #7
    Mugsley's Avatar
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    Cold does this currently for Rich Purple Silk Shirt.

  8. #8
    I think the guy has poor math skills. He'd need to sell 20 gems for each recipe he buys at 10k. And that's presuming the uncut metas are sustainable at 100g each. Without access to cheap Obsidium, they're not. I'm on a small server with a casual raiding population, so it's not a smart move to me. Let him have his monopoly for now. A key rule of market control is that you never attempt to reset or control markets of farmable goods. Now, the recipes are not easily farmable, so it will take awhile for the other shoe to drop. When it does, those recipes will crash hard in price.

    This is the kind of guy that I would deep-undercut on the cut gems as soon as I got the recipe. To send a clear message to think before trying to monopolize a market again.
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  9. #9
    Sterling's Avatar
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    Sounds to me like he's just an idiot. The math makes no sense no matter how you approach it, and you can't sit in trade 24 hours a day. You can't keep all recipes off the market either.
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  10. #10
    Aeg's Avatar
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    The recipe may crash hard, but I would bet the buyer of the 10k recipes could easily sell them at 1k each (probably more). A small amount yes, but this makes his need for meta sales a bit smaller then you are all stating. He needs to make up 9k loss as opposed to 10k.
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