A Perfect Circle Of Goblin Life

Mommar here (again,   someone else is going to be writing these things?   You've miss me too much)

About a week ago I entered an article called Profit Calculation 101 - GPH.   It was chuck full of math parts, digits,  symbols that only fed to the small math nerd in all of us.

But there was one thing that I hope you caught that was wrong with the calculations.   A couple of people wrote to me about them.   The math was correct,  but it was all dependent on a perfect circle between crafter and purchaser.

Think of this as the Gold Goblin version of the circle of life (No,  I will not be singing the song thank you).  A crafter obtains the raw materials. This is done via the auction house,   contacts with your own cartel or farming them yourself.   The crafter makes and prices the item for sale on the open market.   These are the only parts that are directly effected by the crafter.  

The problem with the GPH equation I offered and our perfect circle of life is the need for buyers.   Value is a subjected issue when it comes to crafting.  Any real life collector knowing what their doing will tell you that an item is only worth what someone is will to pay for it.   You can have a 100,000 dollar baseball card according to the Beckett's baseball card manual.  But unless someone writes you a check for the money,  it's worth nothing.

The same idea applies to everything that a Gold Goblin crafts.  A Gold Goblin producer can make neat items from all of the expansions.  From Mechano-Hogs to Copper Bars can be produced continually if the materials are available.  But the value is only worth what someone is willing to pay.  You have a minimum amount that a vendor is willing to pay for an item.  So that can be considered your base value for an item,  but do that too often and you will be a poor Gold Goblin.

So our perfect Circle of Gold Goblin life has to be developed with not just the production of items,  but the knowledge of who is going to purchase the item.   There are certain items that you can list over and over it's a relative guarantee they will ultimately sell.   But as an expansion continues,  the profit margins for each of those items become less and less.  Demand becomes less and less as players purchase vanity items and upgrades.  

That knowledge that we search for,  knowing the ebb and flow of people buying is what sets our standing on the food chain.   The idea that we can list the right items,  at the right price and continue to produce gold out of raw materials.  

Okay,  I admit it,  I started whistling the song as I was finishing the entry.  Ignore the writer,  he got a little dust in his eye.

Good Luck and Good Hunting

Want to get in contact with me? . Email me at Dragonbearjoe @ gmail. dOT com or find me on twitter at "@JMTCMommar" You can find me hanging out on the Shandris Server, chat me up and I will buy you a glass of juice. 

Previous Entries

Addon Abandonment Issues
The Guild: Striking Tone For Sales
Controlling Your Reputation
Are You Experienced
Farming Post Patch 5.1
The Hours of Power
Profit Calculation 101:  GPH
Prepping For Darkmoon Faire
Limited Item Is My Favorite Word
Patch Me Now
Old World Farming
Shake Off The Bad Days
Secret Of  My Success.html
Know Their Roles
Flipping Off The Competition
Kyparite: The New Pyrite
Pilgrim's Bounty For The Educated
Is Your Cartel Happy?
Brawlers Guild: Your Killing Us Here
Change of Scenery
Mists of Pandaria in 5 words

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