srsbusiness

Welcome to another addition of Business as Usual. If you’ve decided to go for the gold (cap), then the hardest part really is the setup. It can be quite daunting, the best way that I’ve found is to approach it like a business. You have cost, stock, and profit. One of the most important tools you have to gaining wealth is sitting on your shoulders right now. If you want the gold, you’re going to have to think (critically) and learn to observe the market, the best way to get started is research.

Forewarned is Forearmed
Do your homework. Whether you’re breaking into a new market, adding a new item to your stock, or just getting started; you need to really take a look at the AH. Familiarize yourself with what’s really selling. Look at the Glyphs and see, are there already several people with a choke-hold on the market? If so, can you break them? Should you? Anyone who really pushes for the cap is going to have competition at some point (so get accustomed to these questions now). So you really need to get a feel for how the AH functions on your server. I can’t stress this enough, check it periodically, keep notes. And take the time to compile the relevant data once you’ve concluded a healthy research period.

I would recommend anyone who’s just getting started take a minimum of a week of R&D time. MINIMUM!

WTF?
I know, you want your gold now. But one of the first lessons all Goblins must learn is the ability to temper patience, learn to delay gratification. As I’ve said before, there’s time enough for Mechano-Hogs and Mammoths once you reach the cap. My purpose is to show you how to MAKE money, not spend it. That being said, do yourself a favor and spend the time studying the AH. This initial research time is vital, it allows you the time to prepare your business strategy, of course this can and will be refined once you actually ARE open for business.

If you haven’t worked up the requisite professions, wait until you’ve finished your research period, unless you are absolutely positive that the professions are what you want. A weekend worth of development time is often enough to work up a crafting profession and it’s complimentary gathering profession. So, plan accordingly.

TAG, SALE, YOU’RE IT!
I maintain an excel spreadsheet of my stock, and I highly recomend it.
(If you do not have Microsoft Office or similar, you can download OpenOffice for free.)
I do not keep detailed lists of every single glyph I have for sale or anything like that. I DO however keep track of things like how many of item X sold today. This sheet also has a tab for research. When looking at a new market, I still adhere to my research time (though it might not be a whole week for a new item). Generally, I break the item down into it’s requisite materials (cost) and watch the price of materials and finished products periodically. In the case of Netherweave Bags for example, I followed the price of the Cloth and the Bags, detailing how much the lowest buyout/average was every hour and a half for several days. This gave a good indicator of the profitability, sustainabilty, and possible competition. I also began making a list of possible farmers, I have since made contact with two such farmers that keep my little mage supplied with heaps of NW Cloth at a bulk rate.
(Recomended reading: Chinese Phrases to Talk to Your Farmers from Sarainy).

Using a spreadsheet to organize your data (bookkeeping) can have a profound effect on your revenue stream, one way specifically that it’s helped me recently has been in spotting outliers. Outliers are statistical anomalies. In my case, I’ve been posting level 60 and 70 enchanting materials and scrolls on the AH to clear out a couple of tabs on my AH bank. These items sell, but not really fast. Then one day, I logged on to see all of my level 70 scrolls sold, along with the bulk of the enchanting mats I had posted. I went into BeanCounter in game and noticed a definite pattern, members of one guild were buying up all of the scrolls and materials. A little snooping led me to the conclusion that this was a guild that hard turned off XP at 70, and was raiding SSC, TK, etc. Learning to identify outliers can lead to profitable niche markets, these markets can sometimes prop you up when times are tough (say when an all out war between you and another glyph seller erupts). In the end though, it’s an opportunity to be exploited as you see fit. The point is, know where your money is going. The more you know, the more efficient you can be.

The Bloodscalp Report:
Sales of NW Bags remain steady, Glyph sales are up slightly. I’ve increased my assets by skilling up Alchemy on another alt, increasing my showing in the gem trade. Unfortunately, prices for gems appear to be down slightly this week. Similarly, Crusader Orbs are crashing. Many are anticipating the upcoming release of 3.3 tomorrow. So people are liquidating their inventory, dropping prices to get the orbs gone.

I’ve started selling some new items: Enchanting Scrolls, Runescrolls of Fortitude, and Eternal Belt Buckles. Neither of these are exactly fly off the shelves, but they have a good cost to sell rate, and people actually do buy them (eventually). As I am anticipating the upcoming release of 3.3 I’m preparing my stores, there are going to be a lot of people with new gear, and I plan to do my best to ensure they have the necessary item augments on hand (for a nominal fee of course).

See you next week!

Profit This Week: 19692g