Warcraft Economics – Auctions, Profiteering, and Helping Others
I love to play World of Warcraft. Questing, killing beasties, gaining achievements, and Player vs Player are just entertaining things to do on a nice relaxing evening. One of the great things about WoW, as it is known, is that there are so many different ways to play the game. One of my most enjoyable things to do, though, is profiteering. I farm expensive materials, gather sellable quest items, and pick up items from vendors in my travels for resale.
My favorite way to find things to sell, though, is to scan the auction house for items that are, frankly, being sold too cheaply. I buy them at the seller’s asking price, and immediately place them back up for sale at a higher price. The price I sell for more closely matches the price that the market will bear. Sometimes, I can multiply my investment several times on one item.
Not everyone looks at these tactics the same way I do. More than once, I’ve been criticized publicly for selling “vendor patterns” on the auction house. Vendor patterns can be purchased in stores around the Warcraft world by anyone, though some are fairly rare and may not always be available. Some of these patterns can be purchased for a fraction of what they will sell for on the auction house.
Personally, I see the sale of vendor patterns and items in a different light than some do. Some of these patterns are in areas that only high-level characters can visit. The only way a low-level character can get these items is on the auction house. Sometimes, you might travel a long distance to visit the vendor that sells an item, only to find that it is sold out. By purchasing these items when I can, and selling them on the auction house for a higher price, I am providing a service to others. They don’t have to travel. They don’t have to risk the effort, only to find the item is sold out. All they have to do is search the auction house, and buy.
When I choose to buy an item from a vendor, or on the auction house at a low price, I am accepting a certain amount of financial risk. One recent visit to the auction house, I spent over 1400 gold on low-priced items. I then paid deposit fees to list these items again at a higher price. The sellers of the items got their asking price with little effort on their part, even if the price was too low. I placed the purchase price, and the listing fees, at risk. If I can’t re-sell the items at the higher price, I lose that money. The seller got their asking price. No one is forced to buy from me at a higher price. I am the only one taking a risk in this situation. Some, though, consider me a bad guy for doing this.
There are other benefits to my actions. By removing items from the auction house at prices that are too low, I increase the likelihood of higher-priced items selling. Anyone else with those items for sale sees a better chance of making a sale, because the lower-priced competition is dissapearing at my cost. I will be competing with them for a sale, but I will compete at prices that are closer to the market prices. My actions benefit others who are selling the same items on the auction house, because they can get a better price.
There’s another great benefit. I don’t just buy things on the auction house to resell. I also buy things I need there as well. If I find an item that would require a lot of travel to find, or a lot of questing to hope that it drops from a mob, I may just buy it on the auction house myself. I can afford it, and don’t think twice about spending the gold, because I’ve taken steps to increase my available gold. I’ve purchased many vendor patterns and items at higher auction house prices, simply because it was much more convenient to do so.
I’ve placed thousands of gold in game-wealth at risk, and provided great benefits in the game. I’ve made items more easily available. I’ve propped-up the market price and increased profits for others. I’ve made many things conveniently available with little effort, and I’ve paid untold hundreds of others exactly what they asked for items I’ve purchased, making them happy for the sale.
Some consider me a bad guy. That’s all right. Some consider the oil companies bad guys for their profits. Some consider healthcare companies bad guys for saving lives while making money. Some consider McDonalds bad for selling food people want at affordable prices. I don’t mind being in that group.
Plus, I want the mammoth.
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