Buy Low, Sell Normal

There are always one of those gold making tips, ideals really that get past down from one generation to the next. I find it rather almost insulting when the next generation of gold makers look down on old ideas, and try to claim that are either stupid, useless or just down right wrong.

For many people who read this blog, in your eyes, I’m rather new. I’m aware of this fact even know, I was a long time reader of JMTC from as far back as Wrath, back when it was worth reading and not just this plain boring nothing new full of ads and scams that it’s become together.

But this isn’t about the rise and fall of JMTC, this is about Buy Low, Sell Normal. For many gold makers, you’ll know this from Markco, a once high-end player in the Gold Community, today he’s found around his Daiblo 3 site putting out content as he did for JMTC. I get it, for someone like Markco it was about the business aspect of it then it was ever the community. This is clear in the sale he made of JMTC months after he basically stop playing the game, stop putting out his own post and outsourcing the site to other gold makers.

He became bored with the game, every one of us has had it happen, some of us leave and never come back and some just take a short little break. Whatever your reasons are, this has been an ideal that holds water if anything.

What is this Sell Normal?

Selling normal or what I like to call the Market Value of an idea, to how much it’s worth. This can change from server to server, it’s all base around the community and how much people are willing to pay. Here is an example of buying something low and selling it normal.

The normal price for a stack of Wool Cloth is 2g 50s, own to about 1g. This is for the whole stack, selling normal would be selling it at 2g 50s. Let’s say you see only one stack of Wool Cloth up for 85s a stack, that far below the market value, if you where to buy it (buying low) and turning around and flip it back to 2g 50s, you are making profit.

We in the gold community call this flipping, you’ll hear about it on many podcasts, forums and blogs in terms of BoE gear or epics as you could say. Flipping is taking anything at a lower price and selling it at a higher price.

In my example, many people will argue and say NO you sell HIGH why sell it for 2g 50s a stack when you could sell them on at a time at 6g. Well you could, and more than likely if no one else undercuts you, you’ll likely sell it at 6g per, making MASSIVE Profit. But this isn’t something you can keep doing.

I know some players will say that well you should try to make the most gold you can. True but the problem is that some times, players will see something going for a whole lot and they will do two things generally.

1) They go farm it and post it deep undercutting you.
2) They go farm it themselves as they refuse to pay your high mark up.

The point is chances are you’re not going to be able to keep the price at your HIGH price for ever long as you can’t control other players and what they do in the markets. You may get a few sales. Just like in the Transmogrification and 77-80 markets. Yeah you could buy the items cheap and sell them for massive profit, but that didn’t last long on most servers as new people came in a deep undercut you.

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7 thoughts on “Buy Low, Sell Normal”

    1. It’s not a matter of not rocking the boat. Generally speaking, if something is overpriced compared what the normal price is players will not buy. The problem with buying something low and selling it high is that doesn’t always work. If I where to buy an item that normally has been selling for say 4g is the market price. You see there is a stack of 4 up for 1g. So normally what I would do is buy it for 1g and put them up one at a time for 4g. Selling just one of them I made my gold back. If I where to post them say at 10g each, sure someone may buy them, but chances are and this depends on the item, I may get undercut to death.

      For some items this works, for example transmog. Yeah you buy a level 10 green for 5g and turn around and flip it for 10k. Someone buys it, etc. I know some people are still able to get away with selling items at really high market ups.

      You also need to remember that not everyone is well off in gold nor do then know how to just make it. I would say and I have no real data to back this up that 50% of the wow community only maybe has 50k gold between all their characters. I have a friend who is a big time PVPer and raider and he never has more then maybe 10-20k at one time and he has a bunch of alts.

      He finally reached 100k after reading my blog and just me talking and telling him on skype things I sell and he should try to do this. But not everyone can really make gold. Just watching Jim’s livestreams shows how many people really just don’t know.

      I remember when I was new to gold making back and wrath. People would say, the fastest way to make gold was to flip items. So I thought I try off small. I would find an item, buy it low and try to sell it for a massive amount, I’m talking I pick up a pet for 200 and try to sell it for 5k. It never sold and the next day when I log in there was 5 others up for 4k, 3k, 500, 200, you get the idea. because the item was easy to farm or someone just had it and saw it was high so they want some of the pie too.

      It’s really just depending on the market and the item, but a general rule of thumb is to buy low and sell normal and when I mean normal, sell it for the market value. I think too many people where all on this back when Markco ran JMTC but the moment he left now everyone is saying that’s not the way to do it. I don’t think I’m saying that its the 100% way to do it. I’ll agree some items you should sell at a higher price like Transmog and 77-80 greens and some other items here and there that can and should pull higher prices.

  1. You have to play by the market rules in some markets, but in many you are free to set your own prices. The actual value of an item is determined by the buyer of the item, not the seller.

    So sell items for what they are worth, not what the market is currently at. If the market price is too low or flooded, just wait until it isn’t and you can raise the prices back up to your standard of expectation.

    The main problem with the whole “but I sell so many more with a lower price” approach is that you are just creating more work for yourself instead of cherry picking the good days and right moments to seek out big profits.

    For those of us with the ability to play in all profession markets, we can dip and jump around into the best markets at that moment and can leave the fighting over scraps to all the wallers and heavy undercutters.

  2. No offense, but following this mantra will in no way maximize your profits, no matter what the market. If you’re really that afraid of “deep undercuts” then you’re not flipping properly (especially with the pets). Referencing JMTC at all in general shows a general lack of knowledge of where the gold making is at this point in time, and you should try a different method before bashing it.

    1. I think you’re totally missing the point I was trying to make here. I think it was either a lack of oversight in choosing my words or the fact people have it in their heads that this is how it is. While I’ll agree that that gold making is not the same as it was. I was in no shape or form was I bashing anyone’s ideals.

      There is no where in my article did I say. If you sell higher then you’re wrong. Again, posting something at the market value of the time is more ideal then trying to post something at a rather high price. Just because an item could sell for a set price doesn’t mean at all that it will.

      I’m not afraid of deep undercutting, not at all. If someone wants to take the time, to craft 100 of an item and undercut me down to crafting cost, by all means go ahead. Let me tell you something, people who do that have no understanding of how to make gold and simply wont last too long.

      AS Cold said, it’s the buyers who control the market, not you, not I. Sure I can look on the AH and see an item and know I can get say 150g for it. There are a few up for 50g. I buy them out, I then post up one for 155g. You may turn around and post it for 1500g (lets just say it’s gear) as as such, hoping to make bank on it.

      The problem with doing that is you are taking a big risk. Someone could come into the market and see that a item is price rather high. They could have the understanding that “Hey I can farm that or make that, and get a quick 400 or so gold” They then post it at 400g under you. What do you do? Do you leave it there hoping that someone will buy them out, leaving yours there and then yours will hopefully sell, or do you sell it at a lower price.

      Either way you could say I’m wrong and I should sell an item for the most I can get, well no offense and you can make a bold statement saying I have no general understanding of the market all you want. At the end of the day, you by all means post your items at max profit you can get, and watch yourself be undercut where I’ll keep making gold.

      There is something to be said about having a steady stream of gold coming in daily then waiting.. and waiting for that big ticket item of yours to finally sell. It doesn’t mean that you’re wrong at all nor that I’m right. Every market is different. The Gem Market is NOT The same as the glyph Market nor is the 77-80 cata green market the same as the transmog market. The buyer decided what they want to spend and some times, I’ve seen people get into a market because the market is high and the market crashes. That’s when it’s time to move to another market. It’s not about being scared of posting and getting the most it’s about keeping your stock moving.

      If you post 3000 auction in one day and you post each of them for 1000k each, at the end of the day you make 3k selling only 3 items, posting everything back up (on 48 hours), resulting in repost fees and you gold take is say 1500k. The same person posts 3000 auctions and only post them for half your price 500g, he sells 40 items, making 20k gold. Do you see what I’m getting at? Now that’s a very extreme example, but the point is some times it’s better to keep your stock moving then it is to simple try to get the most out of everything, it may not be worth it to you only make 200g profit when you could make 4000k profit. It’s a matter of moving the items and getting people in there to buy. If the price is too high or people feel that it’s not worth the price, they DO not buy. Simple logic.

      Maybe you’ve been a player in the Auction House much longer then I have, how long or how much gold you have doesn’t really matter in a discussion of how to post an item. And no offense but the gold maker to day is pretty damn lazy or do I need to remind you on how many people got their first 500k by doing the lazy shuffle. Which isn’t the players fault, its Blizzards and as a result now people need to WORK to make gold.

      Good discussion however :D

  3. He’s actually on to something here guys… It however has some limited application… I use this approach all the time, in markets with long established trends of supply vs demand, and have pretty consistent market prices across all the servers. Trade goods.. You should never expect this to work with pets, or other limited supply items, patterns, xmog gear etc… 2 completely different market dynamics…

    What he’s talking about doing, or at least as best as i figure and relate to my own sales, is like resetting a gem or glyph market back towards normal. Only you flip herbs. ore, leather, etc. Sure you should take advantage of the possibility of resetting a market to 200-300% of market average, but here is the BIG BIG BUT, you shouldn’t attempt to buy large amounts of stuff above ~75% market value… you can’t guarantee holding the market price above that point and ensuring a profit.

    In essence you are buying low, and reselling for normal. My personal example using the above criteria and some tsm/auctioneer trickery. I buy everything (well not everything but i use my experience to filter out the crap) below 75% market value, and re-list for 75%+ (whatever it may be, in this market it doesn’t really matter as long as you’re listing for a profit). Using this method I have ~2500 auctions at any point in time, sell 30-50% of that every 2 days, and make 15-20k per day… JUST by buying low and selling normal… In massive quantities of course…

    1. I think what some are getting at that while, in order to keep a market going, buying when it’s low and selling normal, you tend to as you said have 2500+ auctions up at any given time. Sure you may sell 30-50% of that stock every 2 days, but that 3rd day you have to re-post all of those items. I think some gold makers would rather sell fewer items for more gold then lots of items for less gold, either way on that front it comes down to how much time you have to play.

      If you for example only have a few hours a week to play, you want to get the most out of what you post and the less time you spend crafting or emptying out your mail box and re-posting expired auctions the better.

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