Trying to Adapt


FourSpeed

 

Posted

Hello all, I am in need of some ebil help. I am trying to adapt to the increasing recipe costs due to the drop rate plummeting but I have notice that a lot of crafted enhancements are costing the same as uncrafted recipes. I am wondering how have you adjusted your sales in order to compensate for this lopsidedness...?


Virtue: @Santorican

Dark/Shield Build Thread

 

Posted

Due to the drop rate plummeting?


 

Posted

I am just leveling up lowbies in AE to get tickets and then I roll Bronzes until I get a valuable one and I sell it for mega bucks. I turned off xp at level 10 on the first one and 15 on another and am working on my one I will freeze at 20.


total kick to the gut

This is like having Ra's Al Ghul show up at your birthday party.

 

Posted

Nothing has changed about the drop rate, other than a lot of farmers moving back to PI and getting 'real' drops instead of tickets. From what they've said the drop rate bug has always been with us, so it's nothing new we just noticed it thanks to the changes in mission settings.


I haven't changed anything about my marketeering, other than laying off the purples while I wait for them to patch the bug.


The Nethergoat Archive: all my memories, all my characters, all my thoughts on CoH...eventually.

My City Was Gone

 

Posted

Quote:
Hello all, I am in need of some ebil help. I am trying to adapt to the
increasing recipe costs due to the drop rate plummeting but I have notice
that a lot of crafted enhancements are costing the same as uncrafted
recipes. I am wondering how have you adjusted your sales in order to
compensate for this lopsidedness...?
Hmmm... I a bit confused on this...

Sure, the devs have identified a bug they think is causing the drop rate
issues, but "plummeting" - nah, don't think so.

Further, the reduction in drops seems more than offset (so far, with the
stuff I dabble in) by increasing supply overall, resulting in a reduced
pricing trend.

Additionally, most salvage is pretty much back to the pre-merits, pre-AE days,
which again is a substantial decrease in costs.

So, to which "increasing recipe costs" are you referring to specifically?


Regards,
4

PS> I have adjusted my crafters somewhat for lowered pricing, and even
added some common IO flipping as well, but again, that's opposite of what
you seem to be implying.


I've been rich, and I've been poor. Rich is definitely better.
Light is faster than sound - that's why some people look smart until they speak.
For every seller who leaves the market dirty stinkin' rich,
there's a buyer who leaves the market dirty stinkin' IOed. - Obitus.

 

Posted

The issue that I'm running into is that recipes are increasing in prices and crafted enhancements are not so profit margin is either very small i.e. 10k influence or there is none to be had.

I might have to go back to AE farming until this issue is resolved as I have barely recieved any recipes out of the numerous times I've gone farming in PI.


Virtue: @Santorican

Dark/Shield Build Thread

 

Posted

I've seen some niches become less profitable (but still profitable), but i16 has opened up new opportunities. I've done a terrific business in "second tier" recipes - harmonized healing, triage, serendity, ruin, focused smite. Profit margins aren't high, but they sell pretty well. Sweet spot seems to be level 30-35. Thunderstrikes, level 30-40, seem to sell out as fast as I list them.

This will probably change when the folks that are buying these finally get to level 50, but I've also noticed that people are not leveling at the insane rates that occurred with AE. Sure, there's still PL'ing but no more level 50s in 6-8 hours. So, bargain hunting for stuff you can frankenslot your character may be profitable for marketeers for quite some time.


 

Posted

Prices on most of the recipes that I normally buy have gone up, but in many cases so has the sale price of the crafted IO, because there are fewer being sold.

Specific examples: Mako's Bite and Scirrocco's Dervish IOs. I used to be able to buy most of these recipes for 5,000 or 10,000 a piece. Now in most cases that's not possible, and I'm spending maybe 300,000 or 500,000 per recipe. Price is partly offset by cheaper salvage, of course. For the more useful IOs (damage/recharge, accuracy/damage) there are fewer being sold and where I might have sold for 3-4 million in the past, they may be going for 5-6 million or even 8-10 million now, depending on how limited the supply is.

In cases where recent prices have been as much as 10 million, and there are very few for sale (say, 10-15), I raise my sale price accordingly. ^_^

(I admit, it may take longer for them to sell, due to my price or just lower turnover. But I'm not losing money.)

I know there are probably IOs like you describe that the price of the recipe and the sell price of the IO are too close to make a profit (at least, within a reasonable wait time) but that's hardly true for all IO recipes.



my lil RWZ Challenge vid

 

Posted

Quote:
Originally Posted by Fury Flechette View Post
I've seen some niches become less profitable (but still profitable), but i16 has opened up new opportunities. I've done a terrific business in "second tier" recipes - harmonized healing, triage, serendity, ruin, focused smite. Profit margins aren't high, but they sell pretty well. Sweet spot seems to be level 30-35. Thunderstrikes, level 30-40, seem to sell out as fast as I list them.

This will probably change when the folks that are buying these finally get to level 50, but I've also noticed that people are not leveling at the insane rates that occurred with AE. Sure, there's still PL'ing but no more level 50s in 6-8 hours. So, bargain hunting for stuff you can frankenslot your character may be profitable for marketeers for quite some time.
Can I blame you for the one character I have with a bunch of Focused Smith IOs that aren't selling?



my lil RWZ Challenge vid

 

Posted

Quote:
Originally Posted by Nethergoat View Post
Nothing has changed about the drop rate, other than a lot of farmers moving back to PI and getting 'real' drops instead of tickets. From what they've said the drop rate bug has always been with us, so it's nothing new we just noticed it thanks to the changes in mission settings.
We know that's not true. Just because the uninitialized variable has been here all along doesn't mean that it was being populated with the same (erroneous) data all along. There is significant circumstantial evidence suggesting it changed meaningfully for the first time in I16.

All you have to do is go back to TopDoc's purple farming thread, which pre-dated I16. In efforts to gather comparison data from live with test when I16 was still in Beta, TopDoc's numbers were found in adherence with predicted values.

I know that personally the whole reason I started investigating is that I noticed my own drop rates on test did not seem very good. It was in trying to gather data to confirm that feeling that I ended up part of a collective effort that, ultimately helped the devs find the actual problem. Yet there was no collective sense of issue before I16. While some people may have joined in after seeing the forum discussions, the beta effort to get to the bottom of things was spontaneous and simultaneous from several people. It's notable that such an effort never formed before. One obvious explanation is that this was the first time anything changed significantly.


Blue
American Steele: 50 BS/Inv
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Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
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Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
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Posted

Quote:
Originally Posted by Santorican View Post
The issue that I'm running into is that recipes are increasing in prices and crafted enhancements are not so profit margin is either very small i.e. 10k influence or there is none to be had.

I might have to go back to AE farming until this issue is resolved as I have barely recieved any recipes out of the numerous times I've gone farming in PI.

As an FYI this has been repaired on the build that was just loaded on test. It should be promoted within a week, 2 at the outside. So the phenomena you are observing should be eliminated again soon.


-Insanity is doing the same thing over and over again and expecting different results. - Albert Einstein.
-I do not feel obliged to believe that the same God who has endowed us with sense, reason, and intellect has intended us to forgo their use. - Galileo Galilei
-When injustice becomes law, resistance becomes duty. - Thomas Jefferson

 

Posted

Apparently it's going live on Wednesday.


Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA

 

Posted

Quote:
Originally Posted by Organica View Post
Can I blame you for the one character I have with a bunch of Focused Smith IOs that aren't selling?
Maybe. I'm selling them pretty cheap, but also getting them cheap, so it evens out.


 

Posted

Quote:
Originally Posted by Fulmens View Post
I took a quick look at a couple of my "old standards" (Numina level 50 healing for instance) and they still seemed to have a 5-10 million inf profit margin. This was heroside.
Santorican has a point in that there are some instances where the receipts are priced the same or actually higher than the crafted IO. I started seeing this when I got back from a short vacation, but i have not been playing all that much and did not think much of it


 

Posted

Yes, even without carefully looking over everything, I have seen a few items where the crafted IO sells for exactly the same as the recipe or the recipe costs millions MORE than the crafted IO...which I don't get. I'm trying to think of the names of the recipes...something in the Analyze Weakness set, maybe?

It's weird, and it could be caused by someone having a fit of frustration and paying some gigantic price for one or a few recipes, or it could be some new trend I haven't caught on to.


If we are to die, let us die like men. -- Patrick Cleburne
----------------------------------------------------------

The rule is that they must be loved. --Jayne Fynes-Clinton, Death of an Abandoned Dog

 

Posted

This sort of thing happens from time to time. I think the most common cause is because the rate of transactions in the recipe and crafted items do not match. Usually, the rate of transaction is higher in the recipes. When there is a price shift in recipes, it takes a while for that to propagate into the crafted item. Because the "last 5" produces a kind of price inertia (people tend to both list and bid based on it), sometimes the crafted item's price will even ride out a temporary surge or decline in recipe price.


Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA

 

Posted

Quote:
Originally Posted by UberGuy View Post
This sort of thing happens from time to time. I think the most common cause is because the rate of transactions in the recipe and crafted items do not match. Usually, the rate of transaction is higher in the recipes. When there is a price shift in recipes, it takes a while for that to propagate into the crafted item. Because the "last 5" produces a kind of price inertia (people tend to both list and bid based on it), sometimes the crafted item's price will even ride out a temporary surge or decline in recipe price.
Agreed. It seems to occur when there is a rarity in recipes, but an ample supply of crafted IO's. The recipe price will rise while the crafted IO will fall. It makes you wonder, though, whether whoever is buying/selling either of these is checking both prices.

If you're in a niche long enough, you'll know what the generally stable going rate is for both the recipe and the crafted item and you can capitalize on this. Although I almost always buy the recipe, craft it and sell the IO, I picked up some crafted IO's that were going for well less normal rate and flipped them to sell a day or two later at a good margin, while just leaving low bids (unfilled for a day or a few days during this period) on the recipes. Although the rack turnover is lower this way, it's a lot safer and still quite profitable.


 

Posted

Quote:
Originally Posted by perwira View Post
Agreed. It seems to occur when there is a rarity in recipes, but an ample supply of crafted IO's. The recipe price will rise while the crafted IO will fall. It makes you wonder, though, whether whoever is buying/selling either of these is checking both prices.
I have come to the conclusion that only a small percentage of people must check the prices. If everyone checked them, the prices would be far more tightly coupled, even with the "lag" phenomenon I have described. I also suspect that this is related to the "buy it nao" effect that allows crafted IOs to be sold for so (sometimes vastly) much more than the recipes.

For a very long time, when the villain market was a lot slower than it is now (IMO it's been on the rise since around I11, with I14 being something of a peak), the users on the market seemed to be a lot more picky and careful. For a lot of items the crafted IO only sold for maybe a million more than recipe + salvage costs. Now you can make 3-5M minimum on an awful lot of chaff items. On the good stuff? Oh my.

Edit: Something to bear in mind about rarity in the recipes - it seem to me that this may often be cause by "craft-flippers" - people who buy the recipes specifically to craft and sell at a profit. I say this because you'll often see recipes with only a few for sale and lots of bidders, but the crafted item with lots for sale and few bidding.


Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA

 

Posted

Quote:
Originally Posted by UberGuy View Post
Edit: Something to bear in mind about rarity in the recipes - it seem to me that this may often be cause by "craft-flippers" - people who buy the recipes specifically to craft and sell at a profit. I say this because you'll often see recipes with only a few for sale and lots of bidders, but the crafted item with lots for sale and few bidding.
Good point and this can happen easily. I recall reading someone's guide here that mentioned market correction (and potentially overcorrection). Here's a possible scenario that incorporates your notion about craft-flippers as well as the lag effect that you were mentioning:

Before:
IO recipe drop: 10/day
IO recipe available: 20
IO recipe price: 8m
IO crafting+salvage+fees cost: Approx. 2m
IO crafted item demand: 10/day (that is, it is in sufficient demand to meet or exceed the drop rate at a generally stable demand price, i.e., not junk)
IO crafted item available: 10
IO crafted item price: 15m (assume this is the stable demand price)

Suppose craft-flippers(s) see this 5m margin opportunity and will even do with as little as 1m, picking up the recipes and selling the crafted items. Let's start with craft-flippers doing 15 recipes or so until they approach the minimum total profit margin of 1m.

After (a few minutes later after crafting activity):
IO recipe available: 5
IO recipe price: 12m, rising as craft-flipper bids and other bids creep up to pick up recipe inventory, halting at 12m which gives the decided minimum margin of 1m at 15m sales price and 2m crafting/sales costs. Note now that remaining 5 recipes still for sale now have sell prices *above* 12m.
IO crafted item available: 25
IO crafted price: Minutes later, still 15m, but now with potential to fall due to temporary oversupply.

After (hours later), with 5 recipes bought on-demand (nao at a premium, without looking, for more than the craft-flippers did) and 5 new drops placed on the market (looking only at current recipe price going rates already >12m):
IO recipe available: 5
IO recipe price: Typically 15m, even up to 18m-20m if only 1 or 2 or 3 are available. Recall the remaining 5 recipes after the craft-flippers bought their take were already priced above 12m and probably closer to 15m or more. New items placed on the market tend to follow the new price trend.
IO crafted item available: 20, with 5 bought (the normal turnover rate) and no new crafted items made or put on the market since the initial craft-flipping activity
IO crafted price: Likely <15m, perhaps 14m or even 13m+. The early bird craft-flipper who got recipes at 8m or 9m and will likely quote a lower sales price such as 13m+ to capture the sale at an acceptable margin still with the hope of getting the previous going rate of 15m. The other 10 crafted IO's (likely priced at 14m-15m) are still waiting to sell.

There we have it. Recipes selling for more than 15m. Crafted items selling for less than 15m (and notably, still at a reasonable profit for the early-bird craft-flipper!).

What will eventually happen here is that craft-flippers (or straight recipe flippers) will exit the recipe market (or just leave their low bids sitting) while the over-priced market recipe inventory grows again and prices stabilize at the original lower price. Concurrently, as no new IO's are being crafted for the market, the market IO inventory will shrink with an increase in prices as the lowest priced IO's get sold off.


 

Posted

Yep. The whole thing will oscillate in kind of oddly shaped patterns of price difference, cycling back and forth between those initial and end states. That would be in the absence of any other influences, of course, which means it won't really do that. But it will may tend towards that.


Blue
American Steele: 50 BS/Inv
Nightfall: 50 DDD
Sable Slayer: 50 DM/Rgn
Fortune's Shadow: 50 Dark/Psi
WinterStrike: 47 Ice/Dev
Quantum Well: 43 Inv/EM
Twilit Destiny: 43 MA/DA
Red
Shadowslip: 50 DDC
Final Rest: 50 MA/Rgn
Abyssal Frost: 50 Ice/Dark
Golden Ember: 50 SM/FA

 

Posted

Quote:
Originally Posted by UberGuy View Post
Yep. The whole thing will oscillate in kind of oddly shaped patterns of price difference, cycling back and forth between those initial and end states. That would be in the absence of any other influences, of course, which means it won't really do that. But it will may tend towards that.
True this, especially so for the weekend cycle and special events like DXP. Then there are other considerations such as new issues affecting increased/decreased power set usage and the increased recipe drop rate since the drop rate bug got fixed.

Marketeering is kind of like surfing, riding with the wave, not too far ahead, not too far behind, making it almost as much an art form as an economics exercise.


 

Posted

I'm not even sure it's that rational. I've been able to bid on a block of ten salvage items at 1 inf and place a block of ten of the same item up for sale at 10,000 inf at the same time. Then I sat back and watched as every few minutes I bought one for 1 and every few minutes or tens of minutes someone bought one of mine for 50,000 or 100,000 -- five to ten times the inflated price I'd set for myself (which was itself marked up ten thousand times the price I'd paid).

Any one of my sales could have been had for 1/5 to 1/10 the price just by bidding carefully, and anyone willing to let a bid sit could have trumped my 1-bids by bidding, well, two inf. Instead they pay fifty thousand times what they have to.

Man, I wish real life worked like that.


If we are to die, let us die like men. -- Patrick Cleburne
----------------------------------------------------------

The rule is that they must be loved. --Jayne Fynes-Clinton, Death of an Abandoned Dog

 

Posted

Quote:
Originally Posted by Sailboat View Post
I'm not even sure it's that rational. I've been able to bid on a block of ten salvage items at 1 inf and place a block of ten of the same item up for sale at 10,000 inf at the same time. Then I sat back and watched as every few minutes I bought one for 1 and every few minutes or tens of minutes someone bought one of mine for 50,000 or 100,000 -- five to ten times the inflated price I'd set for myself (which was itself marked up ten thousand times the price I'd paid).

Any one of my sales could have been had for 1/5 to 1/10 the price just by bidding carefully, and anyone willing to let a bid sit could have trumped my 1-bids by bidding, well, two inf. Instead they pay fifty thousand times what they have to.

Man, I wish real life worked like that.
I have to confess that as a 'craft-flipper' dealing in the tens of millions, it makes very little difference whether I pay 1 inf or 10,000 inf for a piece of salvage to craft an item selling at 15m or 50m. Still, as a matter of habit, I'll bid a very low price like 101 (then 202, 303, 505, 1010...) to pick it up. I figure if someone's making an effort to sell cheap salvage on the market for me to use and create an item sought after by others, I'll give them more than a single inf for their efforts. Plus, I'm cycling through several characters' market positions and I don't want to wait all day for cheap salvage to fill so that I can put highly sought after items for sale. Call it positive reinforcement if you want.


 

Posted

Quote:
Originally Posted by Sailboat View Post
I'm not even sure it's that rational. I've been able to bid on a block of ten salvage items at 1 inf and place a block of ten of the same item up for sale at 10,000 inf at the same time. Then I sat back and watched as every few minutes I bought one for 1 and every few minutes or tens of minutes someone bought one of mine for 50,000 or 100,000 -- five to ten times the inflated price I'd set for myself (which was itself marked up ten thousand times the price I'd paid).
It's rational if you consider that for some people the most important factor is time. Either they can creep bid up to get salvage they want, or they can put in a bid which they know will guarantee buying what they want on the first bid. If you have more inf that you know what to do with, and limited playing time, or you're in a hurry to make up a recipe and get back to a mission, then putting in the bid you know will fill immdiately is the rational choice. Inf is play money, but time is a real-world cost.


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