Friday, September 17, 2010

Reset Markets After A Crash

If you've been working jewelcrafting you probably know all to well about market crashes, especially this close to Cataclysm. I've talked to several players that have quit jewelcrafting all together till the expansion hits. On my realm I've seen some fairly large swings in jewelcrafting markets where my most profitable cuts are just about worthless. Luckily for me I was able to sell off most of my gem stockpile so I didn't take any losses. Now I work with small piles of gems to meet the low demands without taking a huge risk.

Reset Markets to Raise Profit Margins
Now there is always a risk that this could backfire on you so I'm giving everyone fair warning, but normally this will not be the case so I still consider it a low risk option if it is on the table. Because the competition has been bailing I've noticed that supply for certain cuts run fairly low, enough to reset a market. For example, Bold Cardinal Rubies may have crashed down to 83g each but there may only be 5 or 6 left on the auction house at or near that price. You buy them all up and repost a couple at 179g. By invoking this method you have essentially manipulated a market, created scarcity, and widened your profit margins.

By resetting the market it will take a while for prices to drop back down to where they were so it gives you plenty of time to make some great profits. Players are still willing to buy cut gems for 179g as I sell them all the time after a reset. This may cause a feeding frenzy with your competition but as I said earlier there should be less competition to deal with as many have left the market.

Questions for Comments
Do you currently reset markets? Have you been using this method with the recent market crashes?


Anonymous said...

I see many do what you do. I don't do this but I take advatage of resets like this. I find after a reset like you explained I would post at say 120-140g. For some reason I find they sell more consistently with this approach then just slightly undercutting you. I think in part the person that did the reset ends up often buying me out. Nice quick profit for me.

Anonymous said...

Agree. It can work with high-volume items, but with sales slowing the others have plenty of time to reset prices. And at that point they never undercut by 1g, it's usually by a lot like the above poster said. Oh well, some sales and profit are better than none at all, I guess.

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