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Why do people sell tailored items for cheaper than mats???
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Post by
9766
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90737
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9766
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90737
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Post by
Fudge
You are right that supply and demand alters and effects prices but this doesnt apply in the case of WOW. People dont put things on the AH with (-) profit because demand is low and supply is high but because crafters that make 52 runecloth belts are only making them to skill up. That 30 blue overalls in the AH for 20% less the mat value is from a guy who dont care what he sells them since he was going to vendor them for 50% the value anyways.
Um, no. 53 Runcloth belts made to skill up equals "supply". Excessive supply. With no matching demand, the pricepoint the market will bear drops below the cost price.
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9766
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41236
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Post by
Fudge
I hope you dont do economics professionally because the laws and principals of economics apply whenever the behaviour of humans (or selfish agents) are being analysed in the face of limited resources.
Supply is supply - the amount of a resource shtat producers are willing to sell at a particular price. NONE of my economic text books have a graph of supply vs "market stability". What crap are you spouting?
The Wow AH and vendors together represent a market. There is a finite supply of resources (excluding items that can be cheaply purchased from vendors in unlimited quantity). And sellers act selfishly in an attempt to fulfill their self interests. Not their profit - just their self interests.
The bottom line is, the population of players that can benefit from an item is small. Hence demand is low. Supply on the other hand IS high. Many producers have an excess stock of the item that they wish to sell - for as much as possible - to fulfill their self interest (Getting as much gold as possible).
Now, Vendors DO represent a fixed demand - they will buy an infinite number of items at the vendor price. Some players will get a benefit from the item, enchanters for. eg could DE it and increase their self interest as a result. Depending on the items utility, these players might be willing to pay more than the vendor price. So there IS a corresponding demand curve.
There IS visible supply AND demand in Wow - its RIGHT THERE in the AH. You can SEE the quantities AND prices.
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102996
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Post by
Sgtown
It's impossible to maintain a price on any massively avaialbe item over the mat cost. Why? Cause if you could buy the mats, craft it, and sell it for a profit, everyone and their mom would do it, supply would outstrip demand, and prices would fall until you no longer made money buying mats and crafting it.
Thus, anything widely available for crafting will NEVER make a profit.
Post by
Fudge
It's impossible to maintain a price on any massively avaialbe item over the mat cost. Why? Cause if you could buy the mats, craft it, and sell it for a profit, everyone and their mom would do it, supply would outstrip demand, and prices would fall until you no longer made money buying mats and crafting it.
Thus, anything widely available for crafting will NEVER make a profit.
I know. I can never buy any bread. Anyone can buy and grind grain, bake bread and sell it for a profit. Everyone and their mom could do it - bread would be so abundant that prices would fall and we'd all starve.
Wait.
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111713
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117629
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Post by
steelpony
Getting back to the original question, because I don't think anybody has answered it properly..
"Why do people sell crafted items for cheaper than the materials?"
It's a simple case of supply versus demand.
After I craft something, NOBODY CARES what went into it. They care about the finished product, and how many products (and similar products) are available out there.
If there are a lot of cheap alternatives, or a lot of what you're crafting, the supply of the item will outweight demand, and the price will be low compared to materials,
Don't sleep in your econ class. You might learn something about the WoW economy.
I agree... Plus I'm glad that this is the way it is. I picked up my imbued netherweave bags (18 slot) for like 8g a piece... whereas a mooncloth bag (16 slot) was trying to sell for over 100g. Keep in mind that people do have alternate characters and probably don't pay out as much for mats as you'd think.
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111733
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