Rep Sale Explanation Please

rgog
rgog Posts: 0 Arc User
edited June 2011 in General Discussion
Can someone explain how the rep sale cause badges to be so cheap? I saw them down at 12k at some point.

Please show me the math on how people profited from this sale?
Post edited by rgog on

Comments

  • Yamchayama - Sanctuary
    Yamchayama - Sanctuary Posts: 26 Arc User
    edited June 2011
    At one point, early in the sale, you could get gold for 1.25 mil, and the badges were .009 gold each in the boutique. So 1.25m * .009 * 1.02 (for the AH fee) gives a breakeven price of 11.25k (give or take a few).

    Gold didn't stay down there for that long though...
  • Innamorata - Harshlands
    Innamorata - Harshlands Posts: 129 Arc User
    edited June 2011
    45 silver per 50 badges

    0,9 silver per badge

    12,000 x 110 = 13200000

    The merchant would of had to buy the gold at a lower price than the number~ above to make a profit.

    ~ auction house fee
  • LenieClarke - Heavens Tear
    LenieClarke - Heavens Tear Posts: 3,275 Arc User
    edited June 2011
    good merchants are very, very skilled at buying gold when it's really cheap. that lets them get lower break-even prices, and thus lower overall prices. they're also often willing to settle for stupidly slim profit margins, again meaning lower prices.

    work their prices backwards, see how low gold would have to be before a 12k rep badge would just barely break even. track the gold market to see how often it gets cheaper than that. that's when those merchants bought their gold.
    [SIGPIC][/SIGPIC] Heaven's Tear alts: KenLubin, Sou_Hon, JudyCaraco --- level 5x chars.
  • Pyrostormz - Raging Tide
    Pyrostormz - Raging Tide Posts: 956 Arc User
    edited June 2011
    LenieClarke - Heavens Tear wrote: »
    good merchants are very, very skilled at buying gold when it's really cheap. that lets them get lower break-even prices, and thus lower overall prices. they're also often willing to settle for stupidly slim profit margins, again meaning lower prices.

    work their prices backwards, see how low gold would have to be before a 12k rep badge would just barely break even. track the gold market to see how often it gets cheaper than that. that's when those merchants bought their gold.

    on something that moves as fast as rep badges, and with the amount you can sell in a short time period, a 5% profit margin can still make you a decent profit, you can realistically move thousands a day
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