Explain me merchanting,just a second

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SoulRequiem - Sanctuary
SoulRequiem - Sanctuary Posts: 403 Arc User
edited May 2012 in General Discussion
Sooo,long(not)story short,I've been watching a certain fashion in auction house for a few weeks,the initial price was kinda too high (15m),so I waited and keep watching AH day after day,hoping the owner will lower the price.

Now,after almost 3 weeks that Fashion has been in AH for every day,the price from 15M went to 18M and today to 20M.

What in the heck makes people think that raising the price will make you sell something that apparently no one its buying to a lower one?
WTB>More Fash
Currently Want-to-buy list>>(W=White;B=Black;A=Any color)
((W. Steampunk Top \\ W. Aegan Dress \\ W. Road Warrior Vest and Shorts \\ W. Cougar Top \\ W. Barfighter Top \\B. Chipao \\ Trading B. Shinobi Set to White \\ B. Bowknot Top \\ W. Porcelian Dress \\ B. Leopard Boots \\W. Corsair Dress \\ B. Debutante Dress \\ W. Sunshine Blouse \\ W. Tiger Lily Dress \\ W. Stardust Dress \\ \\ Red Bikini Bottom \\ W. Crown Princess Dress))
Post edited by SoulRequiem - Sanctuary on

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  • Nowitsawn - Heavens Tear
    Nowitsawn - Heavens Tear Posts: 4,864 Arc User
    edited May 2012
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    Other people bought it and put it up for a higher price?

    Was it Eternal Love fashion, by any chance?
    [SIGPIC][/SIGPIC]
  • SoulRequiem - Sanctuary
    SoulRequiem - Sanctuary Posts: 403 Arc User
    edited May 2012
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    Nope,a Frosty Top

    Its hilarious how merchants only buy things to sell it higher,so the cool part of this story is,no one that really like that fashion will ever wear it,because of some people greediness"I'd prefer to leave in my bank forever rather to sell at a lower price QQ"
    WTB>More Fash
    Currently Want-to-buy list>>(W=White;B=Black;A=Any color)
    ((W. Steampunk Top \\ W. Aegan Dress \\ W. Road Warrior Vest and Shorts \\ W. Cougar Top \\ W. Barfighter Top \\B. Chipao \\ Trading B. Shinobi Set to White \\ B. Bowknot Top \\ W. Porcelian Dress \\ B. Leopard Boots \\W. Corsair Dress \\ B. Debutante Dress \\ W. Sunshine Blouse \\ W. Tiger Lily Dress \\ W. Stardust Dress \\ \\ Red Bikini Bottom \\ W. Crown Princess Dress))
  • Euthymius - Heavens Tear
    Euthymius - Heavens Tear Posts: 3,162 Arc User
    edited May 2012
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    They're just being silly.
    You could try to contact the seller and negotiate with them. If they really want to sell it off, they'll have to drop its price one way or another...
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  • SoulRequiem - Sanctuary
    SoulRequiem - Sanctuary Posts: 403 Arc User
    edited May 2012
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    Well if they really raised the price from 15 to 20 I doubt that they will lower to like 10M-ish(That was the "right" price in my opinion).

    No way Im gonna spend 20M for a White Fashion that's its not in my"OMFG buy it NOW list"(a.k.a. 1st Priority want-to-buy list),its actually in my 3rd priority list(lowest one). b:avoid
    WTB>More Fash
    Currently Want-to-buy list>>(W=White;B=Black;A=Any color)
    ((W. Steampunk Top \\ W. Aegan Dress \\ W. Road Warrior Vest and Shorts \\ W. Cougar Top \\ W. Barfighter Top \\B. Chipao \\ Trading B. Shinobi Set to White \\ B. Bowknot Top \\ W. Porcelian Dress \\ B. Leopard Boots \\W. Corsair Dress \\ B. Debutante Dress \\ W. Sunshine Blouse \\ W. Tiger Lily Dress \\ W. Stardust Dress \\ \\ Red Bikini Bottom \\ W. Crown Princess Dress))
  • jabq
    jabq Posts: 821 Arc User
    edited May 2012
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    Merchanting 101 - Put item for sale, check 5 minutes later.Option 1: Item sold, hmmm, price too low, must increase price b:bye. Option 2: Item not sold, b:angry, silly buyers, they don't want to buy, i must raise price so if someone buys i get more money.

    Go afk, and check back again, option 1: same result with more agro. Option 2: Dramatically increase price and target noob market.

    Sad part is, sellers look at catshops for selling prices and mark that up to sell to others. Catshop owners see the marked up price, so they raise their price to sell to others. What happens, things that were worth 1m, now become 3~20m, and people buy it because they don't know any better.
  • HardToFind - Raging Tide
    HardToFind - Raging Tide Posts: 57 Arc User
    edited May 2012
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    jabq wrote: »
    Merchanting 101 - Put item for sale, check 5 minutes later.Option 1: Item sold, hmmm, price too low, must increase price b:bye. Option 2: Item not sold, b:angry, silly buyers, they don't want to buy, i must raise price so if someone buys i get more money.

    Go afk, and check back again, option 1: same result with more agro. Option 2: Dramatically increase price and target noob market.

    Sad part is, sellers look at catshops for selling prices and mark that up to sell to others. Catshop owners see the marked up price, so they raise their price to sell to others. What happens, things that were worth 1m, now become 3~20m, and people buy it because they don't know any better.

    That is not how merchanting works you know.
    Raising your price when you can't sell an item in the first place does not work.
    Unless you run in to some complete idiot anyway.
    When people check the price of others for the same goods they aren't gonna sell it higher then the people already selling them.
    Instead they are likely to offer the same price or undercut them.
    Which can open up a competitive market war that is actually good for buyers as the prices go down.

    When only one or very limited amount of people are selling an item that is when prices are likely to rise.
    Since they don't have worry about others reducing the amount of sales they have.

    as for the OP
    Seems this guy selling that piece of fash is just an idiot
  • Xainou - Sanctuary
    Xainou - Sanctuary Posts: 5,369 Arc User
    edited May 2012
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    That's the same as this catshop always selling white or black fashion above 20mil. It never sells.

    Idiots that don't follow any kind of economics. Just greedy people. lol
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  • laloner
    laloner Posts: 0 Arc User
    edited May 2012
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    SoulRequiem - Sanctuary wrote: »
    Sooo,long(not)story short,I've been watching a certain fashion in auction house for a few weeks,the initial price was kinda too high (15m),so I waited and keep watching AH day after day,hoping the owner will lower the price.

    Now,after almost 3 weeks that Fashion has been in AH for every day,the price from 15M went to 18M and today to 20M.

    What in the heck makes people think that raising the price will make you sell something that apparently no one its buying to a lower one?

    The auction fees for fash are really low. I always just relist on fash cuz the fees don't bother me.
    AKA PermaSpark, Heartshatter
  • Sagek - Sanctuary
    Sagek - Sanctuary Posts: 1,156 Arc User
    edited May 2012
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    jabq wrote: »
    Sad part is, sellers look at catshops for selling prices and mark that up to sell to others. Catshop owners see the marked up price, so they raise their price to sell to others. What happens, things that were worth 1m, now become 3~20m, and people buy it because they don't know any better.

    God bless the free market.

    It's funny though a few months back there was a group of merchants who actually tried to justify and defend these tactics.
  • Olbaze - Sanctuary
    Olbaze - Sanctuary Posts: 4,242 Arc User
    edited May 2012
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    Sagek - Sanctuary wrote: »
    God bless the free market.

    It's funny though a few months back there was a group of merchants who actually tried to justify and defend these tactics.

    Well, if your specific market is made of scarce supply, fierce competitors and your main tactic is buying and selling the same stuff, that can result in a nasty price hike. A pretty good example of this would be endgame shards such as Citrine Gems, Garnet Gems, DoT, DoD, Primevals and Savants.

    Since the supply is scarce, competition for the best buying price is fierce and since you're also going to sell the same stuff, raising your buy price cuts into your already small profits and you have to raise your sell price as well.

    That would lead to the potential buyers going away, except that the demand for the shards is high and the supply is scarce, as they are rare items from packs.
    I am Olba. Not Ol, not Baze nor Blaze. And even less would I go by Olblaze. Please, take a second to read a person's username.
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  • EtherbIade - Harshlands
    EtherbIade - Harshlands Posts: 68 Arc User
    edited May 2012
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    Some people are just crazy. (tbh a frosty top nvm the color at 20m is way too much)
    But i saw some people buy price at crazy price.
    As some people sell crazy cheap.
    I remember the week the pack with the unicorn mount was released, i saw a shop in south sell the mount for 10m i bought and less than 5 minutes after resell for 25m. :)
    So ye can be someone who bought and sell higher. (i saw someone buy the nurse top black 20m so..)
    [SIGPIC][/SIGPIC]
  • SylenThunder - Twilight Temple
    SylenThunder - Twilight Temple Posts: 7,908
    edited May 2012
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    I recently saw someone trying to sell a black helmsley for 20m in WC. I LOL'ed at him and told him about the one I had just bought last week for 4m and pointed one out in west that was merely 4.5m.
    Kid was like, "do you have any idea how much I spent on these pigments?!?!?!" I just LOL'ed again and told him he should have picked something that was much more in demand to waste his dye on.
    Personally, I mostly stick to skill books and wedding wine. It's a much more balanced market that doesn't fluctuate a lot.
    [SIGPIC][/SIGPIC]

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