Slow money ain’t money
I’m not trying to assert that your methodology isn’t earning gold. It clearly earns you plenty. It’s possible that the guy I referenced that’s crafting thousands of glyphs for 50 silver auction price is turning some profit. He’s just making gold very very slowly.
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So 3% or 50Silver is “too slow” to make money?
let’s do some very very simple math:
I’m making it so simple I’m using a median price and set demand.
TOTAL glyphs sold a day: let’s say 100
normal profit: 10%
competitors: 5
asuming that 15G is the sellers price.
I’m selling for normal price (with other words: undercutting for one copper) 15gx100 : 5 = 1500: 5 = 300G sold
300G x 0.1 = 30G profit.
I’m selling at my profit (3%) – selling price stays the same, cost of making = higher – 15Gx100= 1500G x 0.03 = 45G
Since I’m the only one selling for such a low price, I’ll make more profit then selling at the normal price and competing.
Ofcourse the example herebove, can be flawed since I pulled up the costs in stead of lowering the price, but this gives a you all a good idea of what I mean.
If someone is selling ten pieces for 10G profit yes they make 50G. But I sell 100 pieces of 1G profit, which means I make 100G and the other guys is not going to sell anything.
A lower price and lower profit margin does NOT mean that my overal profit is lower, by having only a 3% profit margin I’m the only one selling and there by I’m raking in the money.
Why do you think that Colruyt fe. is making more money then a GB/Carrefour etc? since they sell the same stuff (exactly the same brands etc) for less money… which means more customers which means more profit…
I hope I made my point. And that you can see that having a lower margin of profit can give you better results in the end of the run.
