Saturday, May 29, 2010

Undercutting Wars - How do you win

The basics of winning undercutting wars is building up a stock pile to compete with everyone else. So let's think about your strategy. You are about to go into a market where there is heavy competition, you are prepared to invest the time to make sure your items are the lowest price, but how do you handle the constant undercutting?

This is an area which is more of a kind of opinion that fact. If you are being heavily undercut what do you do? You have a couple of options at your disposal. You can just go as low as you can possibly go as you pray that the demand eventually hits your demand. OR you can go out and make friends with farmers and build one heck of a stock pile that can easily compete with your competition. If you can buy a product for much lower than you competitors then you will remain on top of making a profit. Your competitors will have to give up eventually because they can't make a profit.

Something I have done of late is that I undercut down to no profit or a negative loss. I feel that the competitive nature of me does not want my competitors to gain any gold which they could further gain as investment in stock against me. If I can slow or prevent that from happening I feel that I am in control of the economics of my realm.

Thanks for checking in!


Anonymous said...

I undercut the AH competition by advertising directly in trade with this, as well as using Frozen Orbs as a medium of exchange for Eternals and other crafting mats:

/2 Buying all frozen orbs (14g), Eternals (14g), Crusader orbs (90g) Epic gems (85) Netherweave Cloth (7g a stack)

And I was very surprised at the amount of people that are willing to C.o.D. stuff to me for those prices even if the Ah sells for a solid 10g more! I now have several contacts that regularly send me materials. 48 Frozen orbs for 14g apiece = 672. Buying 8 Crusader orbs at 120g each = 960. Yay large profit margin even in the face of competition.

NakedJay said...

@ Anon

I have great success as well with posting similar macros in chat. I usually have best luck with epic gems and cloth. I've tried posting, what I would consider ridiculous prices, in trade chat and I have got takers! I've had days where I have been able to buy epic gems for under 80g which makes for an amazing profit margin for me.

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