Friday, July 2, 2010

Killing the Competition

Sometimes I think I can just push out my competition with deep undercutting based on my own stock. But sometimes that just isn't enough. I know, I am becoming more and more cut throat as I play the auction house game but I want to be number one.

Depending on the market and how cheap I can get my materials from farmers I usually have very wide profit margins. That being said when I encounter an auction house camper that undercuts me every damn 10 minutes I pull out the guns and start doing some deep undercutting. I begin by cutting by 4 to 5g each undercut. Eventually they won't be able to make a profit and they will give up. It happens, they don't have the supply nor the profit margins to keep up. I find it hilarious when they continually cancel their existing auctions to undercut me all while I have a quick supply on hand to repost.

Sometimes it gets nasty. Yup, I start throwing uppercuts and roundhouses all over the place! I will undercut as far as taking a loss. I don't care. If it drives my competition out of the market I will remake those small losses. This is something I learned a while back from Stockpile and I was skeptical at first but then I tried it, it worked. Grant it you need to be competitive like myself to get your self into this mentality but it is quite invigorating when you pull it off.

Something I had to do recently was own the netherweave bag market. It started getting really competitive and it seemed like I could do nothing to kill the competition. It looked like they had ridiculously big profit margins to work with. I was selling bags at cost and still couldn't get rid of them. Then I had an idea, I will start farming the cloth my self since supply was low anyway. I can farm 640 cloth in one hour on my paladin running outside of black temple. That's 32 bags an hour. Now my time does not equal free gold, I'm not that dumb, but it does allow me to push these clowns out of my market.

I began posting bags at super low prices, prices that were impossible for them to make a profit on. After doing this for three days...they all quit posting. I then was the only person on the realm selling netherweave bags! I of course jumped the price way up and had my run of it for a while. Anytime my competition comes back for more I just post more up at super low prices again! Rinse and repeat. I know dirty right? It's what I really enjoy about gold making, competing and winning!

Thanks for checking in!


Anonymous said...

i could see that backfiring easily though, what if your competition bought out all your bags and sold them for their price?

NakedJay said...

@ Anon,
Good point, luckily my competition is not bright enough to do that. At least not yet. But this can easily be remedied. I bring the price back up and then slowly drop it again and see where that magic threshold is where they won't make a profit and where they won't bother buying my bags either.

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