Flooding the Auction House - How to Use/Avoid

Time for some quick economics for you wow auction house nuts.

Flooding is when you post too many items in any one market and cause the supply to rise above the demand for a commodity.

Just like in the real world, in world of warcraft when you flood the market the end result will always be a sharp decrease in price as supply surpasses demand. Forcing a flood on the market can be used as a tool to get your fellow auctioneers to dump items on the auction house for less gold than they normally would.

For instance, you put up thirty items for ten gold each when the normal price is six gold each and usually there are 4-8 of the item on the auction house at any one time. Many players see what you are doing and dump their items onto the AH for cheaper than you. Eventually, these players will get into an undercutting frenzy and you will have the same commodity which normally goes for six gold selling at a rate maybe as low as three gold in this example. You could then buy out the under cutters and sell again at a more normal price.

Flooding is never a good idea when you see the opportunity to sell items.

Remember that the fewer items you post, the better price you can demand for your items (supply vs demand). There’s nothing wrong with selling items over the course of several days in short, controlled bursts vs. dumping stockpiled goods and flooding the market.

The perfect market to practice flooding is greater cosmic essence. They are free to post and in low supply on most servers. I would advise testing flooding with this first.

There are other uses for flooding such as effecting other players' addons (Auctioneer for instance). I'll get into this subject more in a future post.

7 comments: on "Flooding the Auction House - How to Use/Avoid"

  1. completly random question...

    do u use a bank alt? is it worth all the mailing?

  2. Hey, I like your Blog a lot, but it would be very nice if you can list good items to resale(Items most ppl want) such as Trade goods. Because as a noob...Beginner :) at AH. I'm a little confused about what some crafting materials are used for and a list would be very awesome.

    also is it possible to make SearchUI only show trade goods?



    Thanks keep updating this place :)


    OT: can't login to me google acc :P

  3. Bank alts will be discussed in an upcoming post and yes I use 4 with guild banks each. I like your idea for a post on 'good sellers,' I'll try to write a list and maybe stick it on the front page.

  4. So like I bought 500 dream shards for 9-12g each this past week in anticipation of the patch. At the start of patch day, one of the major guild banks bought all the dream shards at 19g and lower. He then tried to set the price at 19g. But he flooded the market with around 40 shards. Should I undercut him slightly with only a few shards? Or did what I did and undercut his starting and buyout value by 1 silver and posted 80 shards... (LOL this drove the price back down to 15g)

  5. I did that because I'm going to work for 6 hrs and didnt want him out selling me while i was out. (i'm out during peak times aka 3-9pm pst) In retrospect, I guess just putting a couple would have raised the price to setup for tomorrow, but he would have out sold me while i was gone. What do you think is the right play?

  6. Relax and let the market settle, the demand for shards is going up and although there will be a high supply at first, hopefully demand will drop the supply and quickly raise the price. It might take a week but they will go up in value eventually.

  7. If theres one thing I hate the most, its a flooder destroying my market for the week.

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