Market Value VS Crafting Cost VS Combination

[Deleted]

How do you value [edit: i.e. price] your products? I noticed it's convenient to value products based on the current or mid-term cost of crafting them, but that might be more convenient for very highly priced crafts. What do you think? Should market value be used directly on the end products, should the end products be a factor of their crafting mats in price, or a combination? And, is the type of the product itself important?

[Zeglo]

I'm not even close to an expert nor do I play the market too often, but I try to use common sense. For rare items, I check material prices and then consider demand or the "coolness" factor (such as transmogrification). If it's a common item, like a gem, I simply undercut unless the prices are extremely low (in which case I hold the item for a day or two).

When I buying or selling, I also take into consideration my experience with past prices of the item and/or the premium from buying it finished as opposed to the reagents for creation.

I think the only items in which it's always overpriced for materials are glyphs, but it makes sense I suppose due to scribes currently having few money-makers and pseduo-cartels on most servers.

[Deleted]

An item is worth what someone is willing to pau for it ay any given time.
Know your material cost and then ensure you are the cheapest.
Where the profit margin is satisfactory continue selling
Where the profit margin is low, then consider whether its worth the effort to persevere.
Where the selling price is less than material costs then consider why you are prepared to lose money and how long for.
Where the market is below or above what you think it should be then you will have to consider a reset.
bear in mind many items are about to take a serious plunge in value, so a small loss now might be preferable to a larger attack later on.

[Z-Man]

An item is worth what someone is willing to pay for it ay any given time.

This message has been brought to you by the associates at Dewey, Gougem, and Howe. The market price is what the customer will pay for the item. Everything below that is just sellers willing to leave money on the table. Crafting cost sets a hard floor on the lowest a price can go (sometimes), but there is often no connection between mats cost and the rolling market price.

[Windfury]

I tend to check the undermine journal and go a bit higher than average to account for being on an expensive (relatively) server. Otherwise market price unless I have some reason to drop lower.

[thsoern]

Items i am reselling are priced based on data from TUJ (2weeks avg price). For selling crafted items, i just undercut to a fixed price which is ~200% of material costs (so I make 100% of crafting costs profit).

[Peepo]

This message has been brought to you by the associates at Dewey, Gougem, and Howe. The market price is what the customer will pay for the item. Everything below that is just sellers willing to leave money on the table. Crafting cost sets a hard floor on the lowest a price can go (sometimes), but there is often no connection between mats cost and the rolling market price.

^^ this... the only connection between mat costs and selling price is that the following must always be true...

total cost of mats < selling price

as long as that statement is true, the selling price is set by the market... once it is no longer true, it is no longer worth crafting/selling... at that point, just sell the mats to maximize profit...

[Deleted]

"Buy for a dollar sell for two."

It made many drug dealers rich in "The Wire."

Works for me.

[Deleted]

^^ this... the only connection between mat costs and selling price is that the following must always be true...

total cost of mats < selling price

as long as that statement is true, the selling price is set by the market... once it is no longer true, it is no longer worth crafting/selling... at that point, just sell the mats to maximize profit...

It is not always as clear as that since the value of mats can fluctuate. In certain circumstances a person may decide to continue selling below the cost of purchase.

1. Where a person has farmed the mats themselves, then they can decide what to seel them at notwithstanding the opportunity cost.
2. There may be no market to sell the mats.
3. Its possible you will be willing to sell at a loss to keep market share and to discourage other sellers.
4. When the end of an expansion comes then you may be forced to get whatever you can for items because the price of certain items will only fall further.

So there are often situations where a person may decide to sell at a loss, becayse not to sell may result in even bigger losses.

[Worgena]

The type of product is the most important. Does someone want it or not??? Use the undermine journal and see if it is worth selling. It shows average prices of that product you want to sell. You can see how many have been put on market. I generally sell it for lower to get rid of it fast. Post it on the weekend and see if it sells. If it does keep it at that price. If you have to constantly re-put it up and you are paying more AH fees than what your selling it for, time to lower the price!!

[Deleted]

It is not always as clear as that since the value of mats can fluctuate. In certain circumstances a person may decide to continue selling below the cost of purchase.

1. Where a person has farmed the mats themselves, then they can decide what to seel them at notwithstanding the opportunity cost.
2. There may be no market to sell the mats.
3. Its possible you will be willing to sell at a loss to keep market share and to discourage other sellers.
4. When the end of an expansion comes then you may be forced to get whatever you can for items because the price of certain items will only fall further.

You missed a big one:
5. When a person crafts an item to level his profession, he may not expect to turn a profit.

[Deleted]

You missed a big one:
5. When a person crafts an item to level his profession, he may not expect to turn a profit.

Mea culpa.
6. Where a person is bored or has little interest in the ah fight then they can go postal beyond the realms of logic.

[Deleted]

Mea culpa.
6. Where a person is bored or has little interest in the ah fight then they can go postal beyond the realms of logic.

Oh, good one. Especially when the person in question has deep pockets.