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Is the auction house suppoused to be this risky?

11 replies [Last post]
Tue, 05/24/2011 - 05:51
Sacrontine's picture
Sacrontine

I've been trying to sell 4-star recipes for the reasonable price of 12k crowns at the auction house and I'm finding profit impossible. If you buy a recipe at 10k and try to sell at 12k but there's no bids at your first attempt, then you lose 1200 crowns to the listing fee, resulting in a whopping 800 crown profit if you succeed the second time. Fail any further, and you are now losing money. I'm having these problems even when trying to sell what I thought was popular recipes (ash tail, faust).

Is the AH really supposed to be such a gamble? Won't this scare away potential auctioneers back to the risk-free trade chat, which is what we wanted to prevent in the first place?

Tue, 05/24/2011 - 06:02
#1
Shoebox's picture
Shoebox
It's primarily designed to be

It's primarily designed to be a crown sink, so I imagine so.

Tue, 05/24/2011 - 06:34
#2
Gigafreak
Legacy Username
1: Try Trade chat as a first

1: Try Trade chat as a first resort. No auction house listing fee or cut. You can markup your items less and still make make more profit vs the Auction House if you find a buyer directly.
2: Check how much competition you have before you list your auctions. There might be someone who didn't notice the 10% cut that's selling the items at a loss (or is sick of holding onto the item and is trying to "clearance" it). You won't be able to sell your item until that person's auction ends.
3: For starting bids higher than 2,000 Crowns, there's little to no benefit in setting up an auction for anything less than the maximum duration.
4: When you'd otherwise be just idly hanging about Haven (Spinning Around Haven is the new Jumping Around Orgrimmar!), you can advertise the items you have on the AH in Trade chat again.
5: You can try buy-low/sell-high, but this is simpler on the Energy Market due to the ability to make offers on both sides of the equation and the lower cut.

Tue, 05/24/2011 - 06:47
#3
Ethrx's picture
Ethrx
Did you know that sometimes,

Did you know that sometimes, if you're lucky, you don't get charged for using AH. Bug or whatever, it happens.

SS:

http://a8.sphotos.ak.fbcdn.net/hphotos-ak-ash4/231028_10150193361573279_...

Tue, 05/24/2011 - 06:52
#4
Bigindian
Yes, OP. There's a message

Yes, OP.

There's a message in-game where it says: "only sell your shinies at AH" or something. Since there's a list fee, there's a risk of losing money if you don't sell the item. So, only sell your best items, the popular stuff.

Tue, 05/24/2011 - 06:59
#5
Bigindian
@buckaawk that's not a bug,

@buckaawk that's not a bug, it's a "math illusion", if you will...

in that case the 10% tax coincides with the list fee refund... you were charged 2700 when you added the item to AH... when the item was sold they returned you the list fee of 2700, then charged the 10% which happens to be 2700 too... yeah, it's confusing...

Tue, 05/24/2011 - 06:56
#6
Senshi
Legacy Username
Recipes and recipes...

There are only four 5* recipes that you have to sell at a loss (or as an alternative to paying your fine, you can serve out your sentence in trade chat... ),
Justifier set and Skolver set.

On the other hand, there are probably only four 4* recipes that sell at a profit - Ashtail set, Avenger, Faust. Maybe, if they didn't go down in price overnight. You have to be very picky about which 4* recipes you get and I've more or less given up on them.

As more and more people discover the auction house, the market is starting to stabilize - some mats are showing a steady upward trend in price and some a steady downward trend as more and more people get into auctioning. (Having price trends is stabilizing compared to prices wildly jumping around every few hours, but not stable, of course.) Recipes are very different though... even mass crafters only need one. And anyone with crowns is a potential recipe seller... sooner or later supply will outstrip demand and all recipes will sell at or near cost.

Tue, 05/24/2011 - 09:17
#7
Ethrx's picture
Ethrx
@Iamah Oh really? gosh, thx

@Iamah

Oh really? gosh, thx for the explanation, still confused though. I guess I get it. *herp derp*

Tue, 05/24/2011 - 09:30
#8
Splinter's picture
Splinter
Buckhaawk its works basically

Buckhaawk its works basically this way. Listing price fee is 10% of whatever the listing prices is - so if you put up a recipe for 25k crowns and have a buyout of 50k crowns. The AH charges you 2500 crowns to place that auction up. Then upon sale - lets say it goes for the full 50k buyout you get your listing fee back. However they take a 10% sales fee out of the total selling price of your item.

So 50k + 2500 = 52,500 - 5000 (10%) = 47,500 so you make 47500 overall, not bad, but obviously not the full 50k.

This is worse if say you don't sell, they take the Listing fee so if you don't sell the first time you are out 2.5k.

Basically you want to put up stuff you know will sell the first time, and at a decent price. so you can make a bit of a profit. The AH taking 10% is a bit harsh if you ask me. Especially off the selling price.

Tue, 05/24/2011 - 10:37
#9
Renesis
I can still sell 2* and to a

I can still sell 2* and to a lesser extent 3* items reliably. The low initial cost makes a large markup easy for big spenders to swallow.

As far as higher star recipies go, I ALWAYS have to check to make sure the market will bear another one (ie: there must be demand, without an overabundance of supply) at a profit of course. I usually have a guildie or a friend check the prices on the AH when I get to a good looking Basil (usually if they're not on a run they're looking at the AH anyway, so it's not too much trouble)

I've never failed to sell a recipe in this manner. And I've never sold at a loss.

Tue, 05/24/2011 - 13:12
#10
Gyre-Of-Guile's picture
Gyre-Of-Guile
Developer
discounted listing fees for lower-value items

I'm going to make a change that will allow low-value items to have a cheaper listing fee.

http://forums.spiralknights.com/en/node/9397

Tue, 05/24/2011 - 15:37
#11
Eeks's picture
Eeks
Define "low-value" items.

Define "low-value" items. Does this cover a 4* recipe? otherwise there is still risk involved with listing recipes.

My suggestion is don't sell recipes on the AH for profit. If you sell a 4* recipe for 13k on AH you make 1700. If you don't sell it then you lose 1.1k listing fee (who would start the bidding UNDER break even?). Oh and don't forget about the energy market. If you bought a recipe 2 days ago and didn't sell, you don't just lose your 1.1k cr listing fee but you essentually lost 400cr on top of it since the cr/ce exchange rate went up 200 crowns. OUCH!

The alternative is to sell your recipe on good old trade chat where there is no risk and you keep all the profit. If you sell at a 2k markup you make more money than AH and save the buyer 1k with zero risk. Win-win. OR if you don't like risk in general, don't sell recipes.

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