Tuesday, April 30, 2013

Week 3 Recap Real Life is Up. Sales are Down.

Well week 3 came to a close for me on Sunday and I am just getting around to writing this today. That should give you some indication as to how busy my week had been. Real life took over and my time with WoW, my blog, and gold making have all suffered.

I had (and still have) some out of town guests staying with me so that has been a big part of my busy schedule. We celebrated my daughter's 2nd birthday (again) on Saturday and work had been crazy busy. These are all good things but I have seen a direct impact on my sales. I came in this week 10k less in gross sales and 15k less in net profit so while I still had an ok week it wasn't where I would want to be.

On the bright side, I did break the 900k marker this week which was fantastic. I also participated in "The Happy Hour Round Table Podcast" hosted by Golbinraset along with guests Jim Younkin of Powerwordgold.net, Profitz of wowprofitz.com, Phat Lewts of Phatlewtsgold.net, and Thairus of wowcreativeaccounting.blogspot.com which was a ton of fun.

I can't say I broke into any new markets over the past week but I did attempt to revive one. During the last episode of the Power Word: Gold Podcast Jim had attempted to help me with fixing my lack of sales in the 77-80/83-84 green market. He suggested that I start buying more often to keep the market clear of cheap items that my potential customers may be buying instead of buying my items. I have seen a sure increase in sales due to this. My sales still are not bringing in as much gold as I would like but my server is somewhat low pop on the Horde side (around 30k players) so that is to be expected. I also think that once 5.3 comes out and people are raiding less and have cleared the new quest and daily content they will start working on alts again. This, along with the lessened XP requirement to level from 85-90 should help my sales greatly. Time will tell.

As to my Blacksmithing and JC sales, both are chugging along. I am getting a much better feel for the JC market and I am seeing some nice returns. Blacksmithing continues to bring in a lot of gold for me but the past few days have been a bit slower then I am used to. I am not worried though. That will turn around soon enough. I think the odd number patches my actually help those sales. Blizz seems to be giving world PvP a bit more focus on these patches which I think will help my PvP armor sales on my PvE server.

In conclusion, I want to appologize to my readers for not getting any new content out on the site this past week. So far, this week is proving to be busy as well but I do have some ideas I want to get out to you. Real life has to take precedence to WoW but I do love doing this stuff for you guys so thank you for reading and listening. Keep the gold flowing!


Tuesday, April 23, 2013

Week 2 Recap: 4/15/13-4/23/13. Things are looking up!

EDIT: Do to an error on my part I had an extra day calculated into my weekly numbers resulting in an extra 10k in sales on this weeks numbers. I removed it and put it towards the next weeks numbers and updated the image below and my numbers in the post. Crazy how the days just run together. I will be tracking my weeks as Monday-Sunday so as to keep the weekends grouped. Thanks. -Erogroth

The second week of my blog has come to a close. I have been at the gold making game since the tail end of Cata but I really just started keeping track of my sales closely with the start of the blog. This week I started a nice spread sheet which tracks my daily gross income, net income, gold spent, and starting and ending gold. I really like doing this as I can get a nice break down and hopefully over time I will see some trends on what days are my best and worst. I could even use TSM to look at those days and see what I am selling so I can focus on certain markets on certain days. Take a look at the sales for this week.

One ongoing issue I have been having which continued this week was my drop in my  77-80 and 83-84 green sales. For those of you who don't know what this market is, it is the buying and reselling of Cataclysm level 77-80 uncommon armor and weapons and MOP 83-84 uncommon armor and weapons. These sell well do to the fact that they can be used while leveling through the item's previous expansion pack (wrath for the 77-80, and cata for the 83-84) and provide a much higher item level then can be obtained from the gear that a player would see while leveling though that content.

This was one of the first markets I got into when I started gold making and I made my first 200,000 gold this way. Recently I have seen a major decline in sales. I have tried lowering my prices but that has not helped much and I have been at a loss as to what the problem is. I finally think I may have figured it out however.

As many of you know, Jim Younkin of Powerwordgold.net has asked me to co-host the Powerword: Gold Podcast. Now besides the fact that I get to co-host my favorite podcast one of the biggest advantages to this is some of the conversations I have with Jim. After we finished recording Episode 60 this week we had a little chat about my problem. As I have expanded into other markets I have lost focus on the leveling greens market. As such I have done less buying. Since I am not buying the cheap items to flip my potential customers are. Therefore my items sit. Also since I have seen a decrease in sales I also have not been as motivated to buy. This has snowballed on me and hurt my sales. Jim suggested that I start buying on a regular basis again. Even if that means vendoring items that I have too many of just to get them out of the market. I will take a small loss when I buy and vendor but the sales I get will more then make up for it.

Now you may be saying "Well, why not just DE them?" I had the same question. As it turns out I can vendor these items for around 12g or so. If I was to DE them I would get 2-3 spirit dust on average. The dust I can buy for around 2-3 gold each (sometimes less). So vendoring these items and buying the enchanting mats is actually the better way to go! If you want to hear this conversation we included it as a "bonus track" at the end of the podcast. It was very helpful for me and I hope to see some results this week.

Aside from that, I have been getting more into Jewelcrafting this week and have seen some nice results. As you can see from the spreadsheet above, I had two of my best days back to back. Now 4k is not a huge day but I am still not selling a lot of gems. I am more focused on learning my cuts right now. One change I am making, it that I am using The Undermine Journal (TUJ) to see what gems are the cheapest (usually River's Heart) and using those to learn my cuts. Once you learn all the cuts of the color you will start learning a random cut from another color. Since River's hear cuts don't sell well anyway this seems the best method to go. I am also using TUJ to see what cuts are selling the best and those are the ones I just to cut and sell. To see this page go to TUJ, choose your faction and server, then go to "Crafted" and then "Jewelcrafting". The page that comes up is full of useful information to maximize your profits in jewelcrafting.

My Blacksmithing continues to go well and is my biggest money maker. My competition seems to have given up or more likely taken a break. I have noticed that he will be around for a few weeks then disappear for a few weeks. So I am just I will be seeing him again soon but for now I will enjoy owning my market.

I also started livestreaming this week on twitch (twitch.tv/erogroth). With my work and family schedule its hard to find time to stream but I will try to do so once or twice a week at least. So stop by the channel and follow so you get notified when I go live.

All in all it was a good week. I had nearly 90,000 gold in gross sales, nearly 80,000 gold in net profit, and broke the 800,000 mark (and the 850,000 mark). I am on track for gold cap in the next 2 - 3 weeks. So stay tuned and lets see what happens.

Friday, April 19, 2013

Determining Market Value

So, there you are in the AH and you have all this stuff to sell. But how much should you sell it for? You don't want to under price it and lose out on potential gold but you don't want to over price it and have it just sit there and not sell. What to do?

Determining the value of your item can be one of the trickiest parts of the auction house game. Luckily there are many tools to help along with some common sense.

Tools of the Trade
First, of course there are addons. Auctioneer and Tradeskill Master (TSM) both have a scan feature that will scan the AH for you and build a database of prices. The more often these scans are run the more accurate your data becomes. I prefer TSM for this as they now have an application which runs on your computer and automatically scans the AH every hour and loads the information to the addon for you. This happens regardless of if you are playing WoW or not. As long as you leave the application running you will get a scan every hour 24 hours a day. This allows you to get very updated pricing easily.

Also you have websites such as The Undermine Journal and Wowuction which both scan the AH the same way and will give you pricing. The nice thing with these sites is they scan all realms and factions so you get a broad view of pricing. If there is a more rare item that hasn't been on your AH much you can still get a relatively accurate price. The Undermine Journal also offers an in-game addon, TUJ GE, which will work with your tooltips, TSM, and Actionator to give you global pricing. You can even setup TSM to price items based on a percentage of the TUJ GE prices.

Having these tools will allow you to determine if an item is being underpirced or overpriced and you can decide if you want to undercut, or price higher. In some cases you may want to buyout your competition and reset the market. These tools should be used as a guideline but you can also determine prices on your own.

How to determine prices on your own.
There are two main ways to determining prices. First is the cost of the materials.  This is another area where TSM can be useful. Setting up TSM crafting will tell you the material cost of the item being crafted and how much profit you will make based on AH value. You do have to set this up as well as you do with anything in TSM and I will point you to Faid's videos on clockworkriot.com to do so, but this is a very effective way of doing things. Of course you could look at the cost of the mats in the AH and bust out your trusty calculator and figure it out that way as well.

Now, you may be saying "Well I farm my mats so it doesn't cost me anything". Wrong. Time is the most valuable commodity there is. What is your time worth to you? If your answer is "not much" that's fine but lets look at some other factors. Lets say you are going to craft a piece of plate armor that takes 10 ghost iron bars. You say "well I have all the mats from farming so it didn't cost me anything. I will sell it for 90g." This may have just cost you money. Take a look at what ghost iron bars are selling for. If they are selling for more then 9g per bar you could have sold the mats for a better profit. The point here is that it doesn't matter how you came across your mats, their value in the AH still determine the price you should sell your end product for, or rather what you shouldn't sell your end product for. So what do you sell it for?

This brings us to our second way to determine value. The market. Now above we talked about how addons can calculate market price for us but what is "the market"? "The market" is the economy around the products being sold. Supply and demand! Remember that term from high school? Basically the main two factors that determine the price of an item or the supply of that item and the demand of the buyers for it. So the big answer to the question of "what is an item worth?" is, it is worth whatever someone is willing to pay for it

If there are 20 of any given item on the AH, chances are it is not selling well and people are dropping the price. The market has become "flooded". If there are few or better yet none of the item you want to sell, you get to set the price. In this case I would say start high. How high? Well consult the addons and get a "market price" and then go a bit higher. In the case of our plate piece that took 10 Ghost Iron bars, lets say the "market price" is 650g. Post your auction at 900g. If its the only one and someone wants it bad enough they will buy it. If someone else has one up for 950g and its the only one, undercut them by 1 copper. Keep the price high. Don't drop it to 900g or lower. Selling it for 700g isn't going to make it sell any faster then if you had it for 949g 99s 99c. Someone is just going to buy the one that is the lowest price as long as the prices are not ridiculously high (3000g).

Put it to practice
There is always a breaking point when an item becomes "over priced" but unless its obviously way over let the buyers decide what that point is. Play with your prices. Start high and lower them 25g at a time till you find a good spot. Also, ever wonder why when you go to the store something is priced at $499 instead of $500? Because it looks more appealing. Try pricing your items 1 copper below a round number and see if it sells. Take your time and learn your markets. As appealing as a "quick sale" sounds, underpricing your items is not always to your benefit. You could be getting the same sales at a higher price point.

Good luck and keep the gold flowing!


Monday, April 15, 2013

Week 1 Recap

So the end of my first week as a Gold Blogger has come to an end. I thought I would take a minute and go over some of this week's highlights in gold making and what I have learned.

First, I am happy to say that Jim Younkin of Powerwordgold.net has invited me to be his co-host on the Powerword: Gold Podcast. I was very excited and honored and have accepted the role. Jim's podcast was the first podcast I ever listened to and it got me more into not only gold making but the podcast community. I now enjoy many great World of Warcraft podcasts every week and enjoy talking to those that put on these wonderful shows. So thank you Jim for having me and thank you to the community for being so great!

Now, on to the meat! One thing I started doing this week was tracking my daily gold totals and posting it on my blog. I got this idea from Wowprofitz of wowprofitz.com blog. This is a fun way to see how I am doing on a daily and weekly basis. Its also allowing me to see how much I am grossing on a day and how much I net. Moving forward I am going to start a spread sheet that each day I will enter my gross sales, net profit, and large purchases in. I will make the spreed sheet viewable on my site as well so you can see all my income over the long haul and what I am spending my money on.

Moving onto markets I have learned a few things as well. First, my 77-80.83-84 green sales have been down lately. I lowered my prices a bit this weekend and I saw at least a small increase in sales. I will see how this plays out over the course of the week. It is possible that I am not controlling the market like i used to either. I have not been purchasing as much in the way of greens so maybe the cheap stuff is being bought up and my stuff is rotting on the shelf. I plan to break down my green sales in more depth and see if I can find some patterns in what is and is not selling and make some adjustments. This market is one of my favorites and I refuse to believe it is dead.

Blacksmithing remains my staple of gold making. As I learn more of the Crafted Dreadful patterns I am getting more sales. These items will easily sell at my fallback price of 950g. The only problem I am running into is people underpricing them as low as 125g. With ghost iron bars at 8g-10g each these days there is little to no profit to be made when this happens. Lucky for me I pay much less for my mats and can maintain a decent profit margin but I believe these people are falling victim to the mentality of "since I farmed the mats myself it didn't cost me anything".  Sadly this is not true as "time is money friend!"

Jewelcrafting is my newest market. I am still testing the waters and pricing based on market value rather then a set gold amount. The competition is not nearly as bad as I though it would be but of course there is at least one person who seems to "own" the market that I have to compete with. Still I am managing sales and getting a feel. I am still more focused on learning new cuts rather then posting gems but I am getting there. I do like it a lot though. I will have more to say on JC as time goes on and I find my footing in this market.

Last, I am now posting auctions on four characters. This is all well and good but can be bothersome. Also I don't like camping the AH when I could be playing. I do have a second account that is sitting there not doing much so I may combined all my auctions to one alt who I can park at the AH on one account while I enjoy the game on my other. If sales come in and I need to restock I can make the items and mail them out on the fly. Plus collecting at the end of the day will be easier.

So there you have it. My first week as a blogger and podcaster. Feel free to send me comments and feedback as I am always glad to hear from the community. Thanks all and keep the gold flowing!


Thursday, April 11, 2013

Great Deals For Big Bucks

I originally posted this on The Powerwordgold Hatchery but now that I have my own blog up I wanted to repost it here. Thank you to Jim Younkin for supporting me and posting my first ever articles.

There are many ways to make gold in World of Warcraft. One of the easiest is to flip items. Flipping is the process of buying items at a cheap price off the AH and then selling them (or flipping them) for a higher price. There are many items you can flip but one of my favorites is that of rare crafting patterns and recipes.  

There are many formulas, plans, patterns, and such in the game that have very low drop rates and thus sell very well. Many people are collectors of these items because they want to be able to craft every item in the game for their given profession. Despite being low level and having little use for resale of the actual crafted item these patterns and recipes sell for quite a bit. There are some that are not even in the game anymore but someone has had it sitting in an alt bank for the past 3 years and found it while cleaning house.

Elvine of www.elvinelol.com turned me on to many of these. He had a list of Auctionator Shopping lists which he put out with these items. I took the time to convert these to TSM Dealfinding lists which I use in combination with the TSM app to notify me if any of these items appear on the AH so I can scoop them up and flip them for some big profits.

The following are the TSM dealfinding list versions of Elvine's Auctionator Shopping lists found here.

I set the prices based on what I felt you could buy it at and make a profit. I basically used the undermine journal (www.underminejournal.com) global prices which you can also see on wowhead. Feel free to adjust based on what you feel is a good price for you.

If you need some instruction on importing dealfinding lists to TSM Jim of Powerwordgold.net has a great article here with instructions along with some more useful dealfinding lists or Elvine has one here as well. Enjoy!

Rare Formulas:
Rare Patterns:
Rare Plans:
Rare Recipes:
Rare Schematics:
Recipes No Longer In Game:

Wednesday, April 10, 2013

My Rant: Undercutting and Knowing Your Market

I hate to just rant but I have my own blog now and whats the point if I can't get up on my soapbox once and a while and speak my mind. So here it is.

People need to learn how to undercut. They need to learn the value of the items they sell. Just tonight I realized I was the only one who still had Living Steel Belt Buckles up for sale. They were at around 550g. I took the opportunity to reset the market. I bumped them up over 1000g. Now I did this because I figured they would drop relatively quick. I didn't think they would drop this quick.

First I got undercut to an even 1000g. This is fine with me. I posed at 999g and I was sitting as the low price for a couple of hours. In that time I sold 3 Belt Buckles. Not too bad.

Then someone undercut all the way down to 650g and then another person to 550g.  Now. WTF! Seriously? Come on people. Now Considering there are 3 up at 650g and 1 at 550g I am not going to buy them out to reset. I did choose to just undercut the one at 650g and hope no one else decided to undercut the cheaper one before it sells.

So end rant and begin lesson. When undercutting do so by a small amount such as 1 copper, 1 silver, or even 1 gold. This may seem like a messed up move but it is what your competitor would like you to do. Why? Cause it maintains the market  price. Keeping prices up helps all those selling including you. So you undercut them, they undercut you and so on and so forth. You go back and forth 20 times and the price has only dropped 20 copper. This is a good thing. They  buyers will still come, especially with an item like belt buckles. This is an item everyone needs.

No there are times where someone way way over prices. You don't want to undercut a linen cloth by 1 copper if someone is posting it at 10,000g. But you need to understand you buyers, the market and what people are willing to pay.

One thing that helps with quick posting and easy undercutting if you are new to gold making is addons. Now most gold makers love Tradeskill Master (TSM) but it has a high learning curve and can be intimidating. So another addon I suggest is Auctionator. This will add some new tabs to your AH window. Simply click on the "Sell" tab. Then drag and drop the item you wish to sell in the top half of the window (See below image for auctionator window).

When you drop the item in it will quickly show you other auctions of the same item and the current prices they are selling at. If you click the options button on the top right you can set a standard amount to undercut by (I like 1 copper). Then you simply click the auction you wish to undercut, set the number of stacks, and stack size you wish to sell on the left and click "Create Auction". Done. You have just listed your auction for a quick undercut and kept the market price maintained. Its that easy.

Try this out. You will find that it does not matter if you undercut by 1 copper or 100g. If your auction appears on top when a buyer searches for an item, they will buy it. You will not get a faster sale by undercutting more unless you price the item so low that the mats are worth more then the item itself. If this happens another gold maker will probably scoop it up and relist it at a more profitable price.

Good luck and thanks for listening to my rant.


Tuesday, April 9, 2013

Starting Out in Jewelcrafting

For a long time now (a very long time) I have only had one max level character, my warrior. He is a blacksmith and a miner and has been since vanilla. I have never been one to play alts, that is until I stated making Gold. The simple fact of the matter is that the more markets you can get into, the more gold you will make. So I leveled a rogue and made him a Jewelcrafter. I actually hit 600 jewelcrafting (JC) today and I figured this would be a good time to share what I have learned so far.

First, lets start with leveling. Leveling a JC can be a costly process, especially if you attempt to do it all at once. The problem you run into, as with any profession now days, is that the mats from the old zones can be costly due to low supply in the AH. So you have 2 choices, either spend the money or farm. Neither is all that appealing. I suggest buying where its cheap and farming where it is not but if you are in a rush you can just spend the money. You can also pair JC with mining if you are leveling a new toon so that you gather the mats as you go. This is also nice because you will be spacing out the leveling process and not eating that huge cost all at once. You may even get to use some of those items you make. If you already have a miner you can still pick it up and drop it for another profession later. This will allow you to stay focused on this character and not have to log to your other character just for mining.

Now, believe it or not there is money to be made during leveling. There are two things you should be doing to make money. First, try to sell at least some of the items you make. Most people use http://www.wow-professions.com/ for there leveling. This site will walk you through what mats you need and what to craft to level quickly, efficiently, and hopefully cheaply. I would always try to sell 2 or 3 of an item that I craft. The rest I would send to an enchanter alt to DE. If you don't have an enchanter it could be a good time to start one as they will be getting lots of mats from DEing the items you made. You can create enchanting scrolls and sell them or just sell the enchanting mats. Both will make you some money and offset at least some of your costs.

The second and more important thing you can do to make gold is more long term. While leveling notice what mats are in short supply for your leveling process and that you need a lot of to level. Two examples of this are Moss Agates and Hessonite. You need several of both of these and both seem in short supply. Notate this while you level. These are niche markets you can get into later and make some real money. Often I will buy Tin Ore for 20g/stack or less and prospect it. If I get at least 1  Moss Agate I can sell it for 25g/each or more! I usually end up with several. Hessonite, which is prospected from Obsidium Ore and Elementium Ore, I can sell for 75g/each. This little process holds true for all professions.

As you get more leveled up in JC and start making gems instead of jewelery you can sell many of these gems to twinks. The PVP gems seem to do very well. Also use your knowledge of what gems each class uses and focus on those. Many times you can even vendor the green gems for a profit or at least to break even. Don't expect to get rich but to just recoup a good percentage of what you spent to level.

Once you reach 500 JC and can start crafting Pandaria gems things get exciting. You will get to do a research once a day and learn one new cut. When you do this you will also get an item, Facets of Research which will contain a couple of other cut gems of the same color, so you have gems you can sell right away without having to cut any. In Patch 5.2 a new patterns drops for JCs called Design: Serpent's Heart. You can make one of these a day and it will contain a random raw gem. This pattern is a pretty common drop and shouldn't take long for you to get.

You may wonder what to do with all your uncommon quality gems. There are 2 things you can do. First, make jewelery with them. On average 1 out of every 10 will proc to rare (blue) quality. Sell these on the AH. The ones that don't proc can go to your enchanter and become enchanting mats. This process is known as the shuffle. The other thing you can do is try to craft gems. Again you should get about 1 in 10 to proc as rare cuts (perfect cuts). These will have the same stats as standard rare gems but with a different name. Some people don't realize that these gems have the same stats as normal rare gems and will pay more for them. Put them up on the AH and see how it goes. The onese that did not proc you can just vendor for 85 silver each. Keep an eye on the AH for the uncommon gems as well. If you can buy them for less then 85 silver per gem that is free money! Do the above process and you will at least break even every time. As long as you get 1 perfect cut you made profit!

Start testing the waters of your market. Jewelcrafting is a highly competitive market on most realms and gems sell quick. This is good and bad. You may have to do some Auction House PVP but it can be very profitable. Good luck and have fun.


Day 2

Today marks the second day of GetRichWow. I want to first thank all those that have helped and provided feedback about the look and feel of the site. If you have anything to add that could help me improve the site please leave a comment below or find me in WowProfitz IRC channel which I am in most days.

I have updated the banner and changed the overall layout a bit. I also made some changes to the background and added several gadgets to the side bars. I am sure I will continue to fine tune the site over the next week, so please bear with me as this all comes together.

I hope to bring you my first official gold making post this evening so stay tuned and thank you again for all your support!


Monday, April 8, 2013

Welcome To Get Rich WOW!

Hello and Welcome to Get Rich WOW! My name is Erogroth and I have been playing World of Warcraft since Early in 2005. I began my gold making adventure towards the last few months of Cataclysm and I have learn a great deal since then. Now I want to pass that knowledge on to you.

I have been some what active in the gold making community for the past several months writing some guest posts on the Powerwordgold.net Hatchery page and appearing on both the Cross Realm Podcast and The Powerwordgold Podcasts. I have found that there are many wonderful and helpful people in this little community and I hope you will join us.

My plan for the future is to give you at least a weekly blog post (maybe more) and I would like to either launch my own podcast or continue to guest host on those I mentioned above. I do have a family including a 2 year old daughter and a new baby on the way so time is limited for me but I really feel that I would like to share my knowledge and experience with all of you. So please join me as I approach gold cap and beyond. Thanks for visiting and I hope to hear from you all soon!