Friday, November 21, 2008

Get ready for a terrible post

The auction house in World of Warcraft is kind of weird, but I find it interesting. Basically I've been trying to figure out an arbitrage scheme that works consistently, and I think I've found one.

Basically what I do is buy raw cloth materials, work them into bolts of fabric, and sell those. For example, it takes four pieces of Silk Cloth to make a single Bolt of Silk Cloth. So what I do is buy up all the Silk Cloth with a unit price of 5 silver or less. Then I convert it into bolts of fabric. Then I sell the Bolts of Silk Cloth at a unit price of around 35 silver--netting a me a 15 silver (40%) profit on each Bolt of Silk Cloth sold. The turnaround on this is a day or two.

Sometimes I get outbid on the buying end, but so far I haven't had any problems on the selling end. I kind of don't understand it, since the only people who can use bolts of fabric also, like me, have the ability to convert Silk Cloth to Bolts of Silk Cloth. So really all I'm doing is marking up the price on something for doing labor on it that the buyers can already do themselves for free. Go figure.

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