Friday, July 17, 2009

Keep Your Enemy Closer: Part 2

I previously wrote about the tactic of keeping your "enemies" closer by adding your market competitiors to your friends list. I would also like to add to keep an eye on /who when they go online and offline. Then maybe you can see who their main is and keep a double eye for when they want to ninja undercut you.

My new strategy for keeping your enemy closer is to kill them with kindness. There is a certain glyph seller who is probably not going away from a while. Many came and went, but this particular one has stayed. This person does things right for the most part when it comes to glyphs. They dont flood the market and leave them up for 48 hours, tanking the price.

When they first came onto the scene, they sent me an email just to say hello. I responded by telling them that there is plenty of room in the market and to enjoy the profits.

Since then, we have had peaceful correspondance from time to time. I also sent some advice about how to price glyphs. This person would use their heart to set a price rather than their brain sometimes. I would put it at 16 gold. They would undercut to 8 gold because they thought that is what it sells for. I educated them in the law of the market......things go for what you sell them for. If there are no other auctions of the same kind up, you can set the price. You control that. Not some abstract opinion of what someone would probably be HAPPY to pay.

They responded back that they would do that. I have seen much improvement already. This business arrangement helps both of us. We are going to undercut each other obviously, but there is a respect to not go to buck wild.

I keep an enemy close, and it helps my profit. And they think I am just helping a fellow scribe out. A win in my book.


Alpha said...

What if I want to drive you out of the market by burying you? I post 20 of each glyph at production cost plus one gold? Then after a few weeks of moving nothing because I have kept up the pressure of the big stack, you give up and look for another way to make money, now I let my prices drift back up say to production plus 6 gold and my profits soar. That is the law of the market.

Darraxus said...

That works if the other person can be pushed out. If they dont want to be, they will push it down even further.

Orgauth said...

A game of Economic Chicken - who will flinch first?

Jeff said...

The problem with that is if some one is willing to sell as long as they make a profit, any profit at all, they will outlast some one who is selling for a goal.