Monday, March 7, 2011

Volume Over Margin

I recently have been playing in the glyph market in addition to my usual gem areas of crafting. A principle that all craftsmen should take in to consideration when manufacturing goods from materials in the auction house is the volume of sales you expect to get on a set of items compared to the ROI you anticipate. (ROI == return on investment)

Within a 24 hour period I may sell 4 austere shadowspirit diamond and 1 Effulgent Shadowspirit Diamond

My ROI on the Austere is about 50g, my margin on the effulgent is 150g

Selling the 4 Austere's provides me with more profit then selling 1 Effulgent, likewise if I could sell two Effulgent SDs a day it would be like selling 6 Austere (I wish I could sell 2 eff's a day, they just don't appeal to my server)

Knowing the average of volume of a certain good per day is a great way to maximize your profits when deciding what to make and how much to make how often. Let me be clear that I do not choose to make one of these cuts over the other, I make them both. I use my knowledge of volume trends to know how much I am making, what I expect to get back and how many to list at a time to avoid over spending in deposits from returned auctions.

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