Milling around the Auction House

My first weeks profit and report from playing the WOW economy

A week into my playing the auction house experiment and I can report I’m in profit!  Not just a couple of bronze either, with no more than 2 hours total effort (To quickly recap, I’m buying items on the auction house and reselling them either as they are, or using trade skills of my alts only, no questing or grinding is involved.). I’ve made a 300% return on my initial 1000g stake, and that’s without taking into account the stuff I’ve still listed on the AH and in my inventory which are still to sell.  In addition to my 3000g profit I reckon I’ve another 5000g worth of ‘stock’. 
In my week of playing the market, I’ve primarily stuck to buying Cinderbloom, converting it into ink, and relisting it.  I’ve had a little foray into prospecting ore, and whilst there's a profit to be made there, its more time consuming and I’m not quite sure I’ve fully ‘got’ the most profitable means yet.  I (just last night) had a look at buying herbs to make potions, but as yet haven’t sold any so that’ll be one for the next update, I’m also going to look at enchanting in the near future.

So, for the results; we’ll concentrate on the main trade first up, inks.  In total I bought 2598 Cinderbloom at an average price of 96s 80b, which I milled and turned into ink.  On average (ish) one stack of 20 Cinderbloom will produce materials for half an Inferno Ink and 5 Blackfallow Ink.  In total I’ve sold 33 Inferno Inks at a little over 43g each and 75 Blackfallow Inks at just over 10g each on average.  I’ll also point out that I ‘bought’ quite a lot of the Blackfallow Ink with my mage as I was dry which could be considered as artificially skewing my results – in total I purchased 300 of them at 7.5g each (I chose a value under the average selling price so as not to artificially inflate my profits.
Even when I ignore the stock of ink that is still on the AH unsold from the herbs I bought, I’ve made a healthy profit of just short of 2000g which is a mark up of 77%, a good return for a weeks work in anyone's money.  To put this into context, in the ‘real world’ an economist could reasonably expect a return of around 100% per year on an investment for a commercial venture.  I’ve pasted a breakdown of my P&L table below (note there are a couple of omissions of purchases I made before I installed Beancounter).

With the prospecting, I chose to sell some uncut gems, generally the ones that are used for dailies.  Cut some of the larger gems into various types which were going for a decent price on the AH and then create rings and necks out of the rest, selling the blue ones and disenchanting the green.  As you can see from the table below I haven’t sold that many of the glyphs which I bought, there were a couple of additional sales before the Beancounter install, but for some reason the glyph sales have been quite slow in the past week, and I’ve been careful not to compete with my glyph factory alt, as that would be silly, which has restricted my options.

Selling
Item name	total	number	average price
Inferno Ink	1424g 70s 00c	33	43g 17s 27c
Zephyrite	89g 70s 00c	13	6g 90s 00c
Hypnotic Dust	102g 08s 00c	38	2g 68s 63c
Blackfallow Ink	778g 75s 00c	75	10g 38s 33c
Sovereign Demonseye	94g 00s 00c	1	94g 00s 00c
Brilliant Inferno Ruby	94g 60s 00c	1	94g 60s 00c
Sparkling Ocean Sapphire	38g 70s 00c	1	38g 70s 00c
Glyph of Blade Flurry	475g 00s 00c	3	158g 33s 33c
Carnelian	296g 65s 00c	17	17g 45s 00c
Glinting Demonseye	176g 50s 00c	3	58g 83s 33c
Hessonite	5g 95s 00c	1	5g 95s 00c
				5826g 63s 00c
Purchasing
Item Name	total	number	average price
Whiptail	35g 00s 00c	20	1g 75s 00c
Cinderbloom	2514g 92s 02c	2598	0g 96s 80c
Goldclover	38g 66s 00c	40	0g 96s 65c
Bladefist Sword of the Mercenary	60g 00s 00c	1	60g 00s 00c
Glyph of Death Coil	56g 96s 99c	3	18g 99s 00c
Glyph of Death Grip	18g 99s 00c	1	18g 99s 00c
Elementium Ore	578g 10s 00c	335	1g 72s 57c
Glyph of Stormstrike	17g 95s 00c	1	17g 95s 00c
Glyph of Scourge Strike	20g 00s 00c	1	20g 00s 00c
Glyph of Gouge	40g 00s 00c	4	10g 00s 00c
Glyph of Pounce	36g 60s 00c	2	18g 30s 00c
Glyph of Voidwalker	0g 85s 00c	1	0g 85s 00c
				3418g 04s 01c
	profit with ink purchase			2408g 58s 99c

So what have I learnt with my exploits?  Well quite a lot actually, firstly, automation is key to removing the tedium from making a profit, using the Advanced Trade Skills Window to bulk craft inks is key, unfortunately milling cannot be automated, however if you’re making one type of ink then you can set it off and go do something else.  This means buying in bulk is key I’d recommend creating 300+ Blackfallow inks in one shot and then the associated Inferno Inks.  I’ve used dead time to mill stuff, so waiting in the dungeon queue or while people are afk in dungeons where possible.

The key for me to making profit is to understand the item, its rarity, its uses and its demand.  This will vary from server to server and day to day.  I tend to list items for 48 hours, but ideally you want to aim for 24 hours, or even 12 if you log on daily to ensure you’re always the most competitive.  On the supply and demand front, don’t flood the market, if you’ve just made 300 Blackfallow Ink there's little point listing the lot, this will only serve to give the impression of high supply and you’re almost guaranteed not to sell them.  I tend to list a few stacks of 20 and then another 20 or so singles at a time.  For the Inferno Ink, because of it’s price and relative rarity I tend to only list singles in auction.  On the glyph front they’re pretty slow shifting so I only ever have one of each type listed, the gems often go in spurts, i.e. when someone gets a new item or items with multiple slots and need to gem up.  For the items used for dailies like the lesser gems, I list a few singles and the rest in triples (as you need 3 for the daily).  If the price is crap, don’t list your item, this is especially pertinent for Glyphs on my server, there seems to be a glut of people who level inscription with no idea of the glyphs worth listing them for silly money just to get rid of them; I’ve made several hundred g (pre Beancounter) buying up Glyphs for ~10g and relisting them in the 100s.

I’ve been using Auctionator to help me buy and list items, this has been invaluable in saving me time and making me the most competitively priced vendor of my items.  I can’t stress highly enough how vital the addons have been to my efficiency, without them, I simple wouldn’t bother.

My feeling is the ink is the most profitable, and my figures would back that up, even on the time front, simply due to the variation of items created from jewel crafting ink wins.  That said, I’m kind of hitting my limit for the amount of ink I can sell so if I want to make more money per week then I’m going to be forced to diversify.  I’ve had a brief foray into the gem and jewel crafting markets, but due to the variety involved it’s impossible to automate properly as each time you create a new item type it requires a manual interaction (this is a Blizzard constraint on trade skills).  I suspect Enchanting might be very profitable, however it seems to be extremely difficult to tell how much an item will sell for prior to crafting it as the tooltip addon doesn’t work with enchants (this is because you’re hovering over the enchant, however you sell vellums).

So in summary, I think a very successful week playing the market, I’ve made a few mistakes which have cost me money, but even with the mistakes I’ve made a healthy profit at a far greater rate of return than I could generally expect through grinding or questing.  I’ll aim to stick an update up on my progress as I expand my operations this week however work has gone crazymadbusy so it might be a while.

Becoming a wheeler-dealer

My little auction house experiment
You may have noticed my posts over the last few weeks have become more focussed on the economics of the game, this is partly in that nothing much has changed for my primary focus of the priest on the holy healing front or shadow DPS, and partly because I’ve had less ‘session’ time to actually do much in one shot rather than just pottering around and levelling alts.  I’m even struggling to find the time to get 5 man heroics in.

My regular reader will also know that I’ve been making a fair bit of cash from my auction house adventures, primarily as a result of selling glyphs on my mage.  So I’ve decided to have a look at what a true wheeler dealer could do on the Auction House.  I’m not really setting myself any rules for this, other than I’m using an alt that I haven’t played since TBC, I’ve cleared out it’s bags and bank and deposited the sum of 1000g with it.  I considered starting off with a smaller sum of 1g or less, but that's already been done; 1000g strikes me as a reasonable amount you’d have ‘spare’ after levelling to 85 so why not.

I will be allowing myself to use alts trade skills, so for instance, I might buy a job lot of herbs, send them to my priest and convert them into potions (whilst paying for the glass vials of course).  But I wont be using any collection skills, questing or grinding; all the materials will be bought from the auction house or from vendors.  All of my sales will be made on the Auction House, I won’t be ‘advertising’ stuff in trade, though I’ll reserve the right to sell stuff who happen to post a WTB advert in trade while I’m online.
I’ll be posting my results over the coming weeks, I’ll be concentrating on one or two areas at a time, slowly expanding my horizons as I get more familiar.  I’ll also be using this opportunity to investigate the addons available to aid a trader.

I currently use auctionator rather than auctioneer, as it’s simply easier to get to grips with and use.  I’ve just installed bean counter to help me keep track of what’s going on and I’ve got a couple of tooltip type addons to help me assess the value of items quickly, more details in my post here.

So first up, I’m going to stick with what I know, herbs and glyphs.  Glyphs are my normal business, I’m making a steady 2-5k in gold per week depending on how much time I spend messing around making them and playing the AH.  I’ve occasionally ‘gone aggressive’ and bought out glyphs that have been listed for stupidly low values and relisted them, but I haven’t made a habit of it.  My first course of action was to use auctionator to run through all of the glyphs on the auction house, any which I spotted for less than 20g that were either the only one on, or the next lowest was over 100g I promptly bought and relisted, I’ll be doing this from time to time whilst being careful not to ‘eat my own dinner’ and compete with my mage.  I’ll be looking to expand into the other areas of gems enchants and so on once I get a better idea of what sells and what doesn’t.  200g later and I’ve bought myself about 15 glyphs and relisted about 8 (some are duplicates and I figure there’s no point listing them yet).

Next up its herbs; I’ve noticed for sometime that, due to its abundance and relative lack of use to alchemists, Cinderbloom is dirt cheap on my server, often down as low as 50s each generally more around the 75s – 1g25s level.  Now ink goes for a lot more, per stack of 20 (including the guild level procs) I’d expect to get around one pot of Inferno ink and up to 6 pots of Blackfallowink plus any guild level ‘perk’ procs.  Inferno ink is going at 45g or there abouts per pot, and Blackfallowink is listed at 14g (which I think is a bit high to shift in volume, I’ll give it a go undercutting it but I suspect I’ll need to drop it to sub 10g per pot).

After spending around 500g on herbs, mailing them of to my miller and listing them I’ve got a few hundred gold left and payment waiting in my mail box for two of the glyphs that I listed earlier waiting for me.  Not a bad start.  Check back in the next few days and I’ll post my first set of results.