Perusing the auction house about a week ago, I saw the type of opportunity Accumulation can best capitalize on. About 2000g worth of Volatile Waters were for sale for 25G or less. After that, there was a big jump in price, up to 37g. The idea was to buy up all that inventory on the lower end, and relist for just under 37g.
Accumulation had about 4400g at the time, so she would still have 2400g to buy out anyone who undercut her listings, increasing the odds that her listings would sell.
It worked… sort-of. Like all of these auction house excercises, I learned a lot of valuable lessons:
1) At certain prices there is heavy reluctance to buy. My 37g listings were the cheapest on he AH for quite a while. The better part of an afternoon. But being the cheapest doesn’t guarantee a sale. The price was about 150% the normal price, so they sold slowly. People only bought them if they really needed to. Others undoubtedly decided to come back in a day or so.
2) The window of opportunity is small. Once the price of Volatile Water climbed into the 37g range, seemingly all 10,000+ people on my server that had any in their bags decided it was time to unload their inventory. In almost no time at all, over 300 new Volatile Water listings popped up, all cheaper than mine.
3) You need far more G than you probably think. I spent less than half of Accumulation’s initial bankroll buying up the initial Volatile Waters. But the rest of the 2400g evaporated very quickly, trying to snap up any listing that appeared to undercut me. I was soon out of money, and no longer able to control the market.
So… did the experiment work? It is still too early to say. The Volatile Water situation remained fluid (har har) for several days. I did sell over 120 of them at over 35g. But I was using those proceeds to buy up more, to strengthen my position. Some on the cheap, for 15-19g. Some for nearly 30g, depending on the situation.
The end result? Accumulation now has 1100g and 258 Volatile Waters. This means, after all that buying and selling, she has effectively acquired 258 V. Waters for 3300g. The question now is, can she sell them for more?
If she unloads them all as the CHEAPEST current listing (14g), she will earn 3,612g.
If she unloads them at the current stable-ish “going rate” (24g), she will earn 6,192g.
If she manages to unload them at her original asking price (35g), she will earn 9,030g.
It’s tough to gauge how well an activity like this is going, when you’re in the middle of it. If you sell 20 overpriced Volatile Waters, but use the proceeds to buy 30 cheaper ones, has anything truly been gained? So it is helpful to look at the situation in the above terms.
Unloading her ENTIRE supply, in the low teens, still results in a net profit of 300g, thanks to all the high-priced auctions Accumulation has already completed. A very disappointing result to be sure. But it is encouraging to know that the worst-case scenario still results in a profit.
So now Accumulation just has to determine the right time and right method to unload her 258 V. Waters to maximize profit.