Monday, November 29, 2010

Don’t get greedy…

While most markets are winding down in the final days before cata’s release, it seems like the Glyph market is really heating up on my server. There are 3-4 major contenders, with another 3-4 others trying to get in on the glyph market. While undercutting is fierce, it’s not too horrible as we all tend to stay within the same price ranges (except for the newer people, who sometimes sell their glyphs uber cheap, which get bought up by me or my competitors for resale).
The issue we seem to be facing is Overpricing, and I am not really sure it’s even overpricing – let me explain.

Prior to 4.0.3a if you were a serious goblin, you made sure you traded a bunch of Ink of the Sea for other inks, as you knew about the Ink Trading change. Prior to that, Major and Prime Glyph prices were around 25-35g per on average.  After that change, overnight glyph prices rose 30g and they keep getting higher. Right now a lot of glyph’s are being posted at 130-150g.
I am not posting at 150g. Part of me would love it if my Glyph stock sold at 150g a pop. But the other part of me is realistic.  While others post their Glyph’s for 150g, mine are being posted at 75-90g (depending on glyph).
You may ask why I am not charging huge prices. If all the major sellers agree to prices on my server (as they tend to do within a few silver) then everyone will have to buy at our insane price. Why am I not making that much more gold?
Because it feels greedy. Yes I play to make gold. Yes I believe in supply and demand, but marking up something 900% doesn’t seem like good practice to me.  At the end of the weekend, 80% of my glyphs sold and I post twice a day, every day. Since I stuck to my guns I think more of my stock sold than normal netting me around 22k since Friday in glyphs alone.  I also monitor my competitors and while some of their glyph’s sold, it didn’t seem like they were selling as fast as mine where.

What does that tell us? Don’t get Greedy!

Yes, there are people willing to pay 150g  or more a Glyph just because they want it now. However there are also a bunch of players who would rather wait for a lower price, or worse go make an alt and level inscription themselves, or go find a guildy. Personally I feel that if prices are too crazy, then you drive people away from your market – especially in one as competitive as glyphs. In my opinion its best to find a nice comfortable price, one that others are willing to pay and one that still nets you a decent profit.
With my 90g average that’s 70g profit per Glyph (average herb price 40g a stack, 1 stack = approx. 2 Glyphs). That’s a nice chunk of change for a single glyph. Some of the more rare glyphs I do increase the price, and obviously the common ones go for lower. But that’s a comfortable price for me that it seems like customers also agree with.

You may not agree, but I think that is one of the Keys to AH success in common markets.

Leveling Status update
Paladin is 67, mainly because I think I am part cat and had tons of naps over the weekend that seriously interfered with wow time. Or I would get distracted as I am attempting to enter the market on the horde side of my server. Hopefully with the holiday over I will find more focus and get the paladin to 80 before cata’s release.

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