Cant understand why spending 40 silver to forge 40 bronze bars ends up with a product worth less then 6 silver. Yet one can sell 40 bronze ores for 12.8 silver.
Economics
#1
Posted 19 November 2014 - 07:25
#2
Posted 19 November 2014 - 13:28
We live in messed up world.
Eldevin Steam-generation.
#3
Posted 19 November 2014 - 17:01
Sorry this might not be the best explanation as I'm not an economist...
Ignoring the additional ingredients that go in to start with, bars sell for less than ore because they have less potential XP gain- turning them into bars devalues them to other players who would want to buy them in bulk for quick skilling as now they can only get XP for Weaponsmithing/Armourcrafting and not for Prospecting. Thus players would pay less and so the shop will also buy them for less.
The problem is then that they sell for less than it costs to make them. I believe however, that crafting it into items should turn a profit? (The item is worth more than the components as though it has no potential XP it has useful applications that the ingredients don't and there is a market for them as most players don't craft).
Hope that's helpful.
#4
Posted 19 November 2014 - 21:28
I'm not sure where you're getting 40 bronze ores for 12.8 silvers from unless you're selling to the vendor. You shouldn't be selling anything to the vendors other than the loot that you get from killing monsters/NPCs.
I don't really see anyone buying bars so I'm not sure what the price is for them right now..but I believe that last year when the game launched, players would buy bars for more than the ores. Prospecting is an easy skill to get up and some people would rather buy bars since they wouldn't have to waste time processing the ores into bars.
Personally, I buy bronze ores at 5g/100 and coal at 2-3g/100 so going by that, you could make a profit when making a bronze bar if you do these calculations:
10 silvers (bronze ore = 5s each) + 3s (coal) + 1s (component) => 14s so just make sure you sell the bronze bar for more than 14s.
Note* The prices for materials may change depending on the seller/buyer and the server. I just make sure I go by these general prices since it's what I see other players buying and selling at.
Edited by Rydner, 19 November 2014 - 21:29.
27 Crystal Cutting | 19 Fishing | 40 Forestry | 43 Skinning | 21 Farming | 34 Foraging | 35 Prospecting | 42 Alchemy | 36 Cooking | 22 LeatherWorking | 25 WeaponSmithing | 20 ArmorSmithing | 20 Jewelry | 16 Tailoring
#5
Posted 20 November 2014 - 14:46
I'm not sure where you're getting 40 bronze ores for 12.8 silvers from unless you're selling to the vendor. You shouldn't be selling anything to the vendors other than the loot that you get from killing monsters/NPCs.
Very very true!
You can make so much more by selling the bars to players than you can make by selling them to NPC vendors.
Personally, I buy bronze ores at 5g/100 and coal at 2-3g/100 so going by that, you could make a profit when making a bronze bar if you do these calculations:10 silvers (bronze ore = 5s each) + 3s (coal) + 1s (component) => 14s so just make sure you sell the bronze bar for more than 14s.
Note* The prices for materials may change depending on the seller/buyer and the server. I just make sure I go by these general prices since it's what I see other players buying and selling at.
Apart from my personal opinion that bronze ore and coal are too high priced (both here and in-game) this is a very decent way to look at it.
Most players however don't do this little bit of math and come up with different prices. They may somehow forget that it takes 2 ore to make 1 bar, or that coal and flux cost something too. And some people prefer to buy ore rather than bars because then they get some profession XP for Prospecting from forging the bars. Then they usually end up with a price of bars that is relatively low compared to the price of ore. But still the price of bars is higher than that of ore of course as it still takes 2 ore to make 1 bar (like 1 ore for 5s and 1 bar for 10-12s instead of 14s).
Also the prices of 5s for bronze ore and 3s for coal are outdated now that a lot of new players have entered the game. They are creating a lot more supply and not as much demand so prices have dropped a bit. Obviously still much better than what NPCs pay! ![]()
Gathering Crystal Cutting 49 | Farming 49 | Fishing 49 | Foraging 49 | Forestry 49 | Prospecting 49 | Skinning 49
Crafting Alchemy 49 | Armorsmithing 49 | Cooking 49 | Jewelry 49 | Leatherworking 49 | Tailoring 49 | Weaponsmithing 49
First person to have maxed them ![]()
Characters (all level 49)
Prophet Savanc Savavita Savavimala Mage Savanhildur Savashengli Savahathor
Warrior Savy Savanikomachos Savafionnchadh Assassin Savalina Savajahangir
Ranger Savakainda Savatakoda Savaraxka Templar Savastanislav Savasegolene
#6
Posted 20 November 2014 - 18:08
It's called a money sink ![]()
#7
Posted 20 November 2014 - 18:54
The problem is to find someone who wants to buy them, we dont have an AH where you can post the items. The best way I have found to make a profit is to craft armors with the bars and sell the pieces for a better margin of profit, dont sell the bars to the vendors, craft items, increase your craft and sell the crafted items.
Seek and ye shall find.
The Master
#8
Posted 20 November 2014 - 20:17
The problem is to find someone who wants to buy them, we dont have an AH where you can post the items. The best way I have found to make a profit is to craft armors with the bars and sell the pieces for a better margin of profit, dont sell the bars to the vendors, craft items, increase your craft and sell the crafted items.
Yep and this works for most crafts. There are a few exceptions to the profit, but they are much more rare than in the beginning of the game's release. You can advertise in world chat, or post on the forums under Marketplace. That's where I usually go.
