One of our team members is a real pack rat. He stocks up on anything that might potentially have value whenever he can get it inexpensively. He’s got bags, bank tabs and his own guild bank filled to the brim with eternals of all flavors, BoE epic items, various consumables, and -get this- a guild bank tab filled entirely with stacks of Runic Mana Potions. Yes, that’s a total of 490 mana potions. We were blown away when this came up in a recent meeting between the WoWenomics team members. The rest of the team were kind of giving him a hard time about hoarding so many items as though he were planning for doomsday. We asked him if, when Blizzard finally allows player housing, he plans to build an underground bunker. He took our teasing in stride and said it’s all part of his personal gold-making strategy. He is not ‘stock piling’ anything. He likes to buy items at their cheapest and simply resell them when the value is higher than whatever he paid. In his words, he collects these items and is thus poised when the market goes up to “drop it like it’s hot”.
He makes thousands of gold per week just selling items at the height of their value. He never crashes a market by over-posting his sales- he simply bleeds them back into the economy no more than five at a time and reaps the profits. For this strategy to work he has to follow a strict bid/ask policy and adjust his buy and sell levels almost daily. Even items that he ‘needs’ are subject to his buy and sell policy. For example, as a tailor he stocks vast quantities of Moonshroud, Ebonweave and Spellweave for his crafting needs but is more than happy to sell them, even if he might need them later, when the price is right. See, he understands that the WoW market, like almost all markets, is cyclic and thus prone to ups and downs. Why stockpile any item if you can simply sell it when it’s high and buy it again later at a lower price. In this sense, let the AH be your bank and make a few gold on the items that you would otherwise keep. So, as he explains it, he’s not actually hoarding anything- everything is up for sale. He’s simply waiting for the right ‘ask’ level and he’ll begin selling off.
To enhance his success he understands the entire value chain of his investments. To go back to his tab full of Runic Mana Potions, he says that the market hasn’t been right to sell them off yet in raw form. But he’s been watching the markets for Lichbloom and Goldclover on his server and, as those markets are up, he expects to see a rise in the price of the mana potions soon. But he doesn’t stop there. At all times he makes sure there’s at least one mana injector up for sale in the AH and even these items are subject to the buy low/sell high or ‘drop it like it’s hot’ philosophy.
Every WoW gold maker out there knows to sell his or her items when the market is right. However, the unique lessons we took away from the discussion with our team member were:
- Invest even in markets that you may not have any profession-based interest in provide there is a cycle that can be exploited.
- Sell your own profession materials when the price is high enough, buy them back not ‘when needed’ but when the price is right.
Follow these tips and you’ll be living like a king in no time. Or, to put it in the fine words of the ever-articulate Snoop Dogg:
“So don’t change the dizzle, turn it up a little
I got a living room full of fine dime brizzles
Waiting on the Pizzle, the Dizzle and the Shizzle
G’s to the bizzack, now ladies here we gizzo…
…Drop it Like it’s Hot”