It’s easy to pile up thousands of gold as you level just by listing all your loot on the WoW auction house. But how exactly do you go about pricing your items to get the most gold? You can undercut your competition by a copper, hoping a buyer will pick your item since it’s the cheapest, but be prone to the same undercutting. You can undercut more deeply, in hopes of a quicker sale, at the cost of extra profit. Sometimes you can even buy out all the competition and reset the price of an item. Just like in chess, each situation will require its own plan of attack.
When to Undercut the Competition by Just a Copper
Most of the time, your WoW auction house selling will involve pricing your item lower than all your competitors. When the item you’re selling is near its market value, or appears regularly on the AH, a small undercut is usually the best way to go. A steady supply of an item will make it difficult to control the price, so your best bet is to go with the flow. Current tier herbs, leather, ore, and cloth are good candidates for pricing that is consistent with the competition, and it’s fairly safe to do a one-copper undercut to maximize profit.
When to Undercut the Competition Deeply
If you saw the cheapest Maelstrom Crystal was selling for 1000g (post-patch 4.3, that is!) you could list one for 999g 99s 99c and be the cheapest – but you’d be hard pressed to find a buyer. A better strategy would be to sell for a price that’s above normal, but not too much above average that you’ll discourage most buyers. Perhaps you’d list them for 250g or 300g each, but not 999g. Additionally, the more inflated the price, the more you will encourage competitors to participate in the undercutting. When an item is inflated in price, it’s easy to sell yours at a deep undercut to the competition while leaving yourself plenty of room for profit.
When to Buy Out the Competition and Reset the Price
Resetting the price of an item on the WoW AH is an art. It requires both knowledge of the market, and plenty of gold – depending on what you’re reselling. If you’ve ever gone to the AH to sell an item, only to see the price way lower than expected, it could be a good candidate for a price reset. Using The Undermine Journal to explore your server’s economy is a great way to familiarize yourself with item values. If an item is difficult to farm or rarely farmed, it can pay off big to buy out some or all of the competition and re-list for a higher price. Some examples include world drop recipes, armor and weapons for transmogrification, and previous tier crafting materials.
Start Out Small and Trust Your Gut Feeling
The less gold you have to shell out for an item, the lower your risk. Practice resetting the prices on inexpensive goods before you foray into more expensive markets. Sometimes you’ll buy out an item, only to have another seller list several more stacks. Learn to trust your gut feeling, and cut your losses when necessary. In order to successfully make gold resetting the price of items on the AH, there needs to be enough demand to keep up with the items you’re buying out. As you get better at spotting niche items to flip, you’ll be able to diversify your gold into several different markets, which will practically guarantee a steady cash flow of gold!