| I received this email regarding undercutting with | | | | Any advice on how to deal with this situation? I guess I |
| netherweave bags, my response is below it: | | | | could try buying out the cheap bags until the price was |
| "Hi Markco, hanks for your blog. I've been following it | | | | back up to 13G, then resell them. But thats a significant |
| for a few months now and managed to cross the 50k | | | | investment and the (dumb) competition could just start |
| gold threshold for the first time this week ;) | | | | another price war. Any ideas you have would be |
| I have a question for you regarding bidding wars. One | | | | welcome. |
| of the tips I picked up from JM2C was making | | | | Regards, |
| netherweave bags. The profit margin on these was | | | | Whiteleaf" |
| pretty good. Mats on my server usually come to | | | | Great question Whiteleaf and there are a few ways |
| around 5.5G per bag and on a good day they were | | | | to go about beating your competition when they do |
| selling for 13G. There were already a few people | | | | this. First off, never assume that someone is not |
| selling large numbers of bags on the AH, so, not | | | | making money or that everyone has the same |
| wanting to be seen as a threat, I would only post 3 or | | | | minimum profit range. It could be that the person |
| 4 bags at a time. This way, I figured, my bags would | | | | posting has a farmer selling them items cheaper than |
| definitely sell and some of the competitions probably | | | | you can get them. |
| would too. I would do this three or four times a day | | | | Here's what I would do because it is unlikely that |
| (don't have time to be on all day long) and was turning | | | | anyone farms the cloth for netherweave bags |
| a pretty nice profit. | | | | anymore (botters wouldn't anway): |
| Yesterday, however, disaster struck - a price war | | | | Realise that this is just two or more people attempting |
| erupted between the major manufacturers. Each of | | | | to control the market. Buy out the bags below |
| the three main players started undercutting each other. | | | | minimum profit and wait till after the weekend to sell |
| And not just with three or four bags, but dozens at a | | | | your bags again. Continue doing what you're doing with |
| time. This has meant that each time one guy got | | | | a few here or there to allow for competetition and |
| undercut he had no choice but to further undercut | | | | avoid price wars. Your competetition right now is too |
| because with 30 to 40 bags on the AH cheaper than | | | | dumb to think like you did, so until they give up you will |
| his there was no way they would sell out in 48 hours. | | | | just have to wait it out and be patient. |
| Today bags are on the AH for 7G a piece - next to | | | | Hope that helps! |
| no profit for anyone. I'm not posting any new bags right | | | | Check out Just My Two Copper for more great gold |
| now. | | | | tips and farming methods! |