Flipping more expensive recipes?
By
Camper,
Posted on: 2011-01-05 16:01 in The Market and Inventions
It can be.
However, do be careful about the fees...
For instance, let's say a recipe is "typically" going for 500M, and I'm lucky
enough to get it for say 400M.
If I turn around, and successfully flip it for 500M, I'll shell out 50M in fees,
and pull down 50M in profits... Not too bad.
However, let's say I listed it for 450M (because I'd like it to sell ahead of
the other ones out there currently). If a careful bid creeper comes along
and manages to snag it for 450000111, I'll shell out 45M in fees, and only
make a measly 5M in profit... Major Suckage - I could have made 5M more
quickly by vendoring L50 Common IO recipes. 
On the other hand, if you list it at 500M to avoid that little issue, and the
price trends down, it could be sitting in your transaction slots for weeks,
once again creating a case where you could probably have made a
comparable profit as quickly by crafting and selling some nice set IO's.
So, on the surface, that 100-150M gap looks pretty good, and can actually
pan out well, but do be aware of the risks entailed in that end of the
market.
Regards,
4
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.
Quote:
Thank you for the information, i'm sure ill be able to use it later. |
Originally Posted by FourSpeed
It can be.
However, do be careful about the fees... For instance, let's say a recipe is "typically" going for 500M, and I'm lucky enough to get it for say 400M. If I turn around, and successfully flip it for 500M, I'll shell out 50M in fees, and pull down 50M in profits... Not too bad. However, let's say I listed it for 450M (because I'd like it to sell ahead of the other ones out there currently). If a careful bid creeper comes along and manages to snag it for 450000111, I'll shell out 45M in fees, and only make a measly 5M in profit... Major Suckage - I could have made 5M more quickly by vendoring L50 Common IO recipes. On the other hand, if you list it at 500M to avoid that little issue, and the price trends down, it could be sitting in your transaction slots for weeks, once again creating a case where you could probably have made a comparable profit as quickly by crafting and selling some nice set IO's. So, on the surface, that 100-150M gap looks pretty good, and can actually pan out well, but do be aware of the risks entailed in that end of the market. Regards, 4 |
I generally advise against such an investment if it's a large amount of your total influence. Take a week or two and work a high volume niche that can earn you another few hundred million ( Positron's Blast for example).
This way you don't sink your battleship before it gets out of port.
I am an ebil markeeter and will steal your moneiz ...correction stole your moneiz. I support keeping the poor down because it is impossible to make moneiz in this game.
That being said - the real inf is in the high end goodies. You have to get it right though as the stakes are so much higher.
Over the hills and through the woods.
the lazy influence is in the big cost items. You can earn just as much, if not more, doing high volume niches.
I am an ebil markeeter and will steal your moneiz ...correction stole your moneiz. I support keeping the poor down because it is impossible to make moneiz in this game.
I have a high-end and a low-end marketeer: the low end guy mostly buys for under 10 million and sells for 10 to 30 million. The high end guy does some big and risky stuff. On a good week I do better on the high end guy, but on a slow week the low end guy wins. Also, if I pour several billion inf into a Crazy [88] project the low end guy doesn't slow down at all, but the high end guy gets slammed.
Mini-guides: Force Field Defenders, Blasters, Market Self-Defense, Frankenslotting.
So you think you're a hero, huh.
@Boltcutter in game.
All of what FourSpeed said was good, but I wanted to add one more: Make sure the prices you're seeing are typical when you buy. Last time I bought a purple to craft and relist, I watched the prices all day, snagged a recipe for about 80% of what most of them were going for, and relisted the crafted IO for significantly lower than the going rate, in a position where I was still guaranteed about 100 million profit. Thing was, that weekend I was watching the prices, the prices were exceptionally high. The next day, they dropped a lot, and the IO I'd listed for a cheap price was now right around the normal going rate. It sold, but took about two weeks. Still not a bad investment, but if the prices had dropped even a little more, I would've been in trouble.
Once you get a good feel for where the 'normal' price lies, though, it can be a good way to marketeer with only logging in a couple times a week. It's how I made most of my second billion.
Having Vengeance and Fallout slotted for recharge means never having to say you're sorry.
Quote:
I think this is really good advice. Not only is it a better learning experience when you are new at marketing to turn over a bunch of low to medium things than one big thing, but it's also less risky. Not to mention being more fun than just waiting around for something to sell. |
Originally Posted by Lohenien
I generally advise against such an investment if it's a large amount of your total influence. Take a week or two and work a high volume niche that can earn you another few hundred million ( Positron's Blast for example).
This way you don't sink your battleship before it gets out of port. |
The purples will always be there to flip later. They aren't going anywhere.
Quote:
The difference between recipe and enhancement has nothing to do with flipping.|
Originally Posted by F T W
On a daily basis i see purple recipes that have more than a 150mill difference between the recipe and enhancement. Now, would it be a good idea to try to flip them? I have 600mill on my market toon right now and before i waste 450mill trying this i want to know if its a good idea.
|
Flipping is when you resell something unchanged. Grocery stories flip stuff; they buy it in order to sell it exactly the way they bought it. What you are probably asking about is crafting, which is more like what restaurants do.
My advice: Never have a single thing be more than about 1/3-1/2 your loose cash. Build up enough money on easy stuff that you're still okay after bidding on the expensive stuff, then go ahead and speculate.
Quote:
Spending less time marketing a single item isnt really lazy, it is smart.| the lazy influence is in the big cost items. You can earn just as much, if not more, doing high volume niches. |
As for earning more in mid to low range items, definitely not if you work in enough high end items. The time vs. return ratio is going to be much better too.
As has been mentioned, your main restriction on which approach you take though is starting capital.
Over the hills and through the woods.
You can definitely make money crafting and selling purples (it's where pretty much all my cash comes from). However, with only 600 million in the bank, it will be slow going at first, and you'll have to be really careful, because when things go bad while flipping purples, you can lose a LOT of money pretty quickly. If you can manage to get ahold of a couple billion, it'll go smoother, since you'll be able to easily bid for 4 or 5 purples at a time and still have enough for listing fees, and you'll have more of a backup if you get burnt. Long story short, it's worth it, but be careful.
I've found mid-price (40-80M sale price) high-volume niches to be the best.
I have 4 niches in this range at the moment and two of them account for 500M a day by themselves (750M profit after costs every 3 days/toon).
I have 2 toons which play with purples and they make about 150M profit every week (I check them less cause its lower volume work).
If you want to make inf on purples/pvp ios the best way is to pop them by farming content (shocking words coming from an inveterate marketeer)
On a daily basis i see purple recipes that have more than a 150mill difference between the recipe and enhancement. Now, would it be a good idea to try to flip them? I have 600mill on my market toon right now and before i waste 450mill trying this i want to know if its a good idea.