Difficulty level: difficult
Risky method
Pre-requisite: at least a 100k g in your account
In this unit, we are going to study a technique which complements the ones from module 2 and the Auction House, to earn even more gold.
If you want to use it wisely, you need to have a good command over the principles and methods from module 2, especially those related to manual purchase/resale via Auctionator. So, if you’re not there yet, I recommend you set this technique aside and come back to it later.
We will see what we call: shortage creation. This is a method for advanced users which requires you being a bit more careful than usual but which can really pay off. You will also need a strong cash flow, over 100k g.
What is the basic idea for this? Well, the everlasting rule of supply and demand.
Everything on the AH is based on this universal rule. If supply increases then prices fall and if the demand is high, then prices will rise.
So, you can get a bargain if you know the market price of a particular item and you buy it when supply for it is high then resell it once prices go up with demand.
In fact, you can even go further and take over a whole market by creating what is called a shortage.
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- First you need to focus on a particular resource you are familiar with and that you know is in regular demand. Avoid easily farmed resources otherwise bots can easily take away your profits.
- You need to know your market price and decide which price you want to impose. Double for example. More, less, it’s up to you but 50% more at least.
- You then purchase this resource until supply for it runs dry. It means you literally empty the AH. You do buy everything that is for sale. Be careful not to buy much higher than the target price you’ve just defined. 20% more is still O.K. if it allows you to completely empty the AH.
- Immediately after, you post for sale a small quantity of this resource. Not too much, to maintain a shortage. Of course, you post it for more, that is the price you set as your objective (double the price for instance).
A quick tip: remember to offer all sizes for stacks (1, 3, 5, 10, 20…). - From then on, you need to actively watch the AH. As soon as a new stack is posted, you buy it and store it at your bank. Because you need to keep control over your market.
You will find that many people are going to buy these resources at full price. Why?
First of all, because many players have no idea of the market price.
Some other players have enough money not to care about prices.
But also, because very few players are patient enough to wait. They want their enhancement, their profession leveling or their item right away and will be willing to pay even when they know the price is higher than usual.
If you pay attention and stay active on the AH, you can make a real fortune with this method. It can appear risky, but if you did decide to release control of your particular market, then all you need to do is slowly sell off your surplus at the average price and it will quickly disappear with a minimal loss in comparison to the benefits you will have reaped until then.
Choosing your resource is really crucial. This is the reason why I use the term resource. Since what has the higher and most regular demand is everything related to professions.
Many players create alternate characters or change professions. In this case, they already have gold at hand and can use it for faster leveling.
Here is a quick list: Linen Cloth, Netherweave Cloth, Frostweave Cloth, Embersilk Cloth, Wool Cloth, Heavenly Shard and Maelstrom Crystal, Cosmic, Eternal and Celestial Essences, Volatiles, Cobalt, Elementium, Obsidium and Pyrite Ores, some herbs like Whiptail, Twilight Jasmine, Savage Leather, and so forth.
As I already mentioned, the only thing dealing with minerals, herbs and leathers is to make sure that players using bots are not operating on your server. Otherwise, you will constantly buy their stock and never be able to make prices go up.
To tackle some markets, you will need to invest a lot, such as tens of thousands of gold. You also have to be ready to spend some time on it: envision paying a dozen visits to the AH every day for a while. So, this is something you can program during your vacations :).
That’s it, you now know this pro technique which can really pay off.
Heres my own personal example, of using this method.
I was setting out to tackle the Heavenly Shard market. At that time, one heavenly shard was negotiated in large quantities between 80g and 100g on my server.
I knew demand for it was regular since this resource was often used for high level enchanting, by players who can afford it and who cannot wait to use their latest acquired equipment.
I invested several thousand gold over one week to empty out the Auction House and take over this market. Not a single Heavenly Shard for sale and all major enchanters stocks had run out…. Then, I started posting them sparingly for prices ranging from 120g to 200g. Some even went for more than 300g!
I need to confess that this particular character had the added advantage of being an enchanter and that I had prepared for this by storing every heavenly shard I was getting.
Within two weeks, I was able to double my initial investment and reap a profit of nearly 30,000g… But I have to say those were two rather intense and stressful weeks.
This technique can also prove very efficient if you make gold by farming this particular resource.
Because you can store it and resell it for a higher price once you previously created a shortage. If you manage this correctly, you can sell off your crops at a much better price.
Actually, you can see this quite frequently at different levels. If you closely monitor the rates for Elementium or Obsidium, you’ll see what I’m talking about ;)…