Thursday, July 25, 2013

Posting Philosophy

Before I start with this post I just wanted to take some time to point to a recent post by Stede called Unprecedented.  In this article Stede advocates for stockpiling for 5.4, and if you're starting to think about 5.4 this is a great place to start.

Me personally, I won't be stockpiling persay.  My reasoning behind this is that I'm always stockpiling in excess when I can get good prices.  Just in time crafting is a terrible way to manage your mats, I'd rather have too many mats at a dirt cheap price, than not enough with high prices, makes sense right?  Right now for example I have 20 of each rare cut that I keep in stock, and I have 500+ stacks of Ghost Iron Ore waiting to be prospected.  The only time I'll really slow down on this will be at the tail end of the expansion.  Now back to your regularly scheduled post:

Gold Making Philosophy
I had the idea to write about this when GoblinRaset had been recently coming up with some crazy custom pricing schemes in TSM 2 to price Ghost Iron Ore, and I decided to give my mathematical perspective on what's my reasoning is here.  Now creating profitable thresholds and fallbacks in TSM is a necessary evil of playing the auction house, but in the end, I personally am not going to put as much thought into it as GoblinRaset did.

Why?  Simple.  When it comes down to it, TSM_Auctioning is really just making 1 decision for each item based on your threshold and fallback: "Do I undercut it by 1 copper or not?"  In the long run, no matter what your thresholds are, as long as they're profitable, you're going to end up posting the item 95% of the time or more.  This is why I don't think too much about my thresholds.  I pick some profitable numbers and run with them, because regardless, I'm just undercutting by 1 copper.

As time goes on, you're still going to make the same profits regardless, so why fuss.  Just one more thing in life that's not worth the worry!   Now I'm not saying that it is a bad thing to know your markets, quite the contrary, the better you know them the better it is for you.  I'm just saying don't sweat the small stuff in this case, it's really not worth the time.  That's my two cents.  Here's a TL;DR:



Cheers,

Phat Lewts

If you enjoy my blog follow me on twitter, @PhatLewtsGold!

2 comments:

  1. Just being a bit picky on wording but I view just in time crafting as the process of creating an item when you need it. It has nothing to do with how you buy your mats. I dont prestock more than a couple of anything I sell and never have. I keep lots of raw mats in supply as I only buy them based on my buying thresholds. Case in point I have been in the glyph market for a long time. I still only have 1-2 of most glyphs but I craft daily whatever has been sold. As to buying the mats, I am constantly buying when the price is right.

    Pricing really does depend on server size and activity. Being on a dieing server I control the prices in many markets. The sales dont happen if you price too high. You need to price at a reasonable level.

    As to my experience at this, long time player since vanilla. Current liquid gold nearing 5million. Still believe in pricing at reasonable prices and to be active each day on the AH.

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    1. No worries, I'm going to be a stickler right back. JIT is actually a concept in the real world: "The philosophy of JIT is simple: the storage of unused inventory is a waste of resources"

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