Thursday, October 4, 2012

Gold Guru - Corner Your Market

So you tried out the container strategy published by Josh last week, eh? (If not, view his video here.) We had some excellent feedback from you guys and I'm excited to address one of your biggest concerns.  Hopefully you've done alright and made yourself some gold after several hours of click click click click clicking, opening stacks upon stacks of bags. Well I'm Kyle, Josh's brother from the ShoddyCast, and I've got some more advanced tips on this strategy that can help you take control of your chosen bag market.

Now before going further, please know that there is some risk (always when dealing with the Trading Post) and it will take money to implement this. If you're okay with this, then please continue.

The #1 most voiced concern on last week's strategy was that prices were sometimes moving too fast on your chosen bag type.  You did your homework, found the perfect bag, and some jerk rains on your parade by submitting a higher buy order than you effectively killing your chance for profit.  I say it's time we protected ourselves.

As I'm sure you know, when purchasing an item on the Trading Post you have the option to purchase instantly at the lowest listed price or you can place an buy order at a lower price and as sellers fill that order. Most of the time items will have a large difference between these two prices. This is a good thing for other items that you want to flip, but with containers there is no need for this difference in price and thus we are given the unique ability to maintain or even lower the selling cost of these bags without hurting our profits in the long run. Why would we bother doing this? Well there's three reasons:
  1. It will keep other buyers from posting orders above yours.
  2. It will fill your orders faster.
  3. It gives you the option to buy instantly at a slightly higher cost.
So how do we do this? Simple! Just purchase some of the bags you wish to use, but instead of opening them, we resell them. As we resell them, we gradually lower the price to within one copper of the highest ordering price. And we do this gradually in case some numb-skulled buyer decides to buy them instantly, the price won't shoot up, but will go to the next price tier. So again this keeps other buyers from placing a higher priced order since there's no point in matching the lowest selling price. It will fill your order faster because sellers will be more prone to filling your order if there's only a one copper difference between the prices and they can get their money instantly. But if sellers still sell their bags at the lowest cost, it gives you the option to buy some of them at a slightly higher cost.

So that's how to maintain the bag pricing but I also mentioned how you could potentially lower the cost of the bags. This method starts the same way. Buy bags and lower the cost down by gradually reselling at a lower cost, but instead of placing your order, you will also fill other buyers' orders as well. Now of course there are some things to consider before doing this. How many orders are there and how big are they? If there's hundreds or thousands of orders, then filling those orders wouldn't be worth your time and money. But if there's only a few orders to fill, then it may be worth the effort. So as you fill those orders be sure to lower the selling price behind it to keep the gap tight.

And that's pretty much it. As mentioned, there is a risk in these methods. It's possible that other buyers will undo your work by selfishly buying the bags you resell because they are impatient and want their bags now or want to raise the highest ordering price. But if enough buyers are educated and follow this method, then we can all enjoy the rewards of lower bag prices and higher profit margins.

Be sure to watch the video above that goes over this information with examples.  Join us next Thursday for a fresh non-bag related strategy!  Also, if you like what we do here don't forget to 'Like' and Subscribe to show your support.  It is much appreciated!!!

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1 comment:

  1. Which bags? I've tried all of them, found thorned sack and large ritual bags to be the best, but you only make a few silver off of 250 orders, and sometimes you even make negative money.