A SELLER'S GUIDE (well, buyers too, but mostly sellers) TO THE AUCTION HOUSE
written (slowly) by Leeah (aka Roger Wong)
updated: 1/12/2005
DRAFT and OUTLINE
ObDisclaimer: Leeah makes no warranty as to the fitness of this information for any purpose. The information in this guide is subject to change and obsolescence without notice.
CHAPTER 1. THE AUCTION HOUSE AND YOU.
The auction house in Blizzard's World of Warcraft presents players with a method for selling items to others. Most of these items fall into two broad categories:
- equipment: stuff you can wear or wield
- trade goods: stuff you use to manufacture equipment
Effective auction techniques differ slightly for these two categories, and we thus describe them in separate sections of this guide.
CHAPTER 2. THE IRONFORGE/OGRIMMAR AUCTION HOUSE IS ONLY A MAILBOX AWAY
It is essential that anyone intending to use the auction house regularly create at least one "alt" to keep in the city that houses the auction house. Postage is only 30 copper, and with most of your items selling for 30s or more, this equates to 1% overhead. In exchange for this 1% overhead, your benefits include (1) spending more time playing the game and wasting less time in travel, (2) extra bank space, (3) amusing conversations such as this:
[Alyiah]: Kind sir, would ye take 1g50 for that firearm?
[Dstryerd00d]: k. at bridge
... Trade Complete.
[Dstryerd00d]: wtf? ur level 2! what you gonna do w that?
[Alyiah]: It's to protect myself from the unwanted attention of men. I have a conceal/carry license.
CHAPTER 2. PSYCHOLOGY: CONFESSIONS OF A USED-TRAM SALESMAN.
Social-engineering your pitch to get discounts from individuals advertising WTS or WTB ads on the trade channel.
How to bargain, and why bargaining is essential to the feel-good factor.
CHAPTER 3. TRADE GOOD AUCTIONS
3.1. BUY LOW, SELL HIGH
Obtaining commodities on the cheap from players who don't know any better (their trash is your treasure).
3.2. SCHOOL CHILDREN ARE POOR AT MATH, HAVE LITTLE PATIENCE, AND HAVE SHORT-MEMORIES
Understanding some driving principles behind WoW trade good economics: the U.S. public education system, opportunity cost, and the lack of price history data.
3.3. WHY CORNERING A MARKET IS A BAD IDEA, AND HOW TO GET AWAY WITH IT ANYWAY
Identifying soft markets where you can make money on a regular basis.
Keeping the trade alive without smothering it.
What to do if someone starts imitating you.
3.4. SUPPLY AND DEMAND
Coping with uncertainty and fluctuating prices. Hint: When in doubt, do nothing.
CHAPTER 4. EQUIPMENT AUCTIONS
4.1 PRICING TO SELL
Auction deposits on equipment is a function of their vendor sales price, and is thus much higher than for trade goods. To avoid having your profits eaten into by relisting expired auction items, you should price your item to sell on the first go.
Determining the ideal selling price for an item depends on its enchantments and who the item is intended for. For example, you can price a dagger with a spirit/intellect enchantment at a higher point than a dagger with a strength/stamina enchantment, because daggers are attractive to spell-casters who value mana more than attack power. (Always roll for items with bonuses to Agility, as Agility-bonused items always sell well.)
To establish your base price, search the auction house for similar items. Remember, the auction house is a bit like poker, and you are competing against the other auctioneers for other players money:
- If your item has more desirable magic bonuses than the other items, you can price it more.
- If the item has less-desirable traits, you may have to price it for somewhat less.
Exactly how much less is a matter for debate. If the only other Boondoggle Sword of the Monkey is SHORT and is set to expire, you have more upwards-mobility in your pricing options. If there are five other similar swords, all on LONG or VERY LONG timers, you'll have to stay within 20% of the average price for Boondoggle Swords
4.2 HOW TO BUY
Unless you're familiar enough with prices to know when someone has posted a buynow price under market value, you'll have to win the item in a good 'ol auction. The keys here are Patience and SHORT auctions out of prime-time: If you have the patience to wait for an item to go SHORT while no one is looking, you have a very good chance of acquiring it for the auction price. Go shopping for your equipment 3 or 4 levels before you need it. This gives most players at least a week to obtain equipment at cheap prices.
written (slowly) by Leeah (aka Roger Wong)
updated: 1/12/2005
DRAFT and OUTLINE
ObDisclaimer: Leeah makes no warranty as to the fitness of this information for any purpose. The information in this guide is subject to change and obsolescence without notice.
CHAPTER 1. THE AUCTION HOUSE AND YOU.
The auction house in Blizzard's World of Warcraft presents players with a method for selling items to others. Most of these items fall into two broad categories:
- equipment: stuff you can wear or wield
- trade goods: stuff you use to manufacture equipment
Effective auction techniques differ slightly for these two categories, and we thus describe them in separate sections of this guide.
CHAPTER 2. THE IRONFORGE/OGRIMMAR AUCTION HOUSE IS ONLY A MAILBOX AWAY
It is essential that anyone intending to use the auction house regularly create at least one "alt" to keep in the city that houses the auction house. Postage is only 30 copper, and with most of your items selling for 30s or more, this equates to 1% overhead. In exchange for this 1% overhead, your benefits include (1) spending more time playing the game and wasting less time in travel, (2) extra bank space, (3) amusing conversations such as this:
[Alyiah]: Kind sir, would ye take 1g50 for that firearm?
[Dstryerd00d]: k. at bridge
... Trade Complete.
[Dstryerd00d]: wtf? ur level 2! what you gonna do w that?
[Alyiah]: It's to protect myself from the unwanted attention of men. I have a conceal/carry license.
CHAPTER 2. PSYCHOLOGY: CONFESSIONS OF A USED-TRAM SALESMAN.
Social-engineering your pitch to get discounts from individuals advertising WTS or WTB ads on the trade channel.
How to bargain, and why bargaining is essential to the feel-good factor.
CHAPTER 3. TRADE GOOD AUCTIONS
3.1. BUY LOW, SELL HIGH
Obtaining commodities on the cheap from players who don't know any better (their trash is your treasure).
3.2. SCHOOL CHILDREN ARE POOR AT MATH, HAVE LITTLE PATIENCE, AND HAVE SHORT-MEMORIES
Understanding some driving principles behind WoW trade good economics: the U.S. public education system, opportunity cost, and the lack of price history data.
3.3. WHY CORNERING A MARKET IS A BAD IDEA, AND HOW TO GET AWAY WITH IT ANYWAY
Identifying soft markets where you can make money on a regular basis.
Keeping the trade alive without smothering it.
What to do if someone starts imitating you.
3.4. SUPPLY AND DEMAND
Coping with uncertainty and fluctuating prices. Hint: When in doubt, do nothing.
CHAPTER 4. EQUIPMENT AUCTIONS
4.1 PRICING TO SELL
Auction deposits on equipment is a function of their vendor sales price, and is thus much higher than for trade goods. To avoid having your profits eaten into by relisting expired auction items, you should price your item to sell on the first go.
Determining the ideal selling price for an item depends on its enchantments and who the item is intended for. For example, you can price a dagger with a spirit/intellect enchantment at a higher point than a dagger with a strength/stamina enchantment, because daggers are attractive to spell-casters who value mana more than attack power. (Always roll for items with bonuses to Agility, as Agility-bonused items always sell well.)
To establish your base price, search the auction house for similar items. Remember, the auction house is a bit like poker, and you are competing against the other auctioneers for other players money:
- If your item has more desirable magic bonuses than the other items, you can price it more.
- If the item has less-desirable traits, you may have to price it for somewhat less.
Exactly how much less is a matter for debate. If the only other Boondoggle Sword of the Monkey is SHORT and is set to expire, you have more upwards-mobility in your pricing options. If there are five other similar swords, all on LONG or VERY LONG timers, you'll have to stay within 20% of the average price for Boondoggle Swords
4.2 HOW TO BUY
Unless you're familiar enough with prices to know when someone has posted a buynow price under market value, you'll have to win the item in a good 'ol auction. The keys here are Patience and SHORT auctions out of prime-time: If you have the patience to wait for an item to go SHORT while no one is looking, you have a very good chance of acquiring it for the auction price. Go shopping for your equipment 3 or 4 levels before you need it. This gives most players at least a week to obtain equipment at cheap prices.