[GOLD GUIDE] Extreme flipping for profit!

[zealot505]

THE EXTREME FLIPPING METHOD

Most people have heard of flipping, I'm sure, but have you heard of EXTREME FLIPPING?

Maybe not.

This is a simple system that rewards very, very easily.

This is the basic concept. You buy mats somewhat cheap, get someone to craft items of greater value than mats + auctionhouse fees + tip (later on this)

Yes, you guys might have used this before, but, there is a twist that would net you even more money that if you would've just sold what you made.

That twist is monopolizing the entire process of making the item that you are selling.

For example, I sell Netherweave bags. Netherweave bags require 1 rune thread (NPC SOLD) and 20 netherweave cloth. On my server, netherweave is sold for about 5-6g per stack. Add 50s for the rune thread, and add 1g for the tip. That's 7.5g total. Now, as you know, netherweave bags are over 10g at most times. Just sell the bags. Simple.

It is great to make a seperate alt in Org or whatever to make this business, as it require only limited startup money, and you need all the storage space you can get. After that, the possibilities are endless. THE VERY BEST THING about this method is that it requires no skills or even good savvy investment skills!. You just need to have a calculator, and a good product to sell!

A good tip is to always be friends with your crafters, and give them extra tips if they craft large orders.

I would not recommend using this method for more valuable items, as it is too hard to monopolize the ENTIRE manufacturing process.

The way I monopolize my bag production is simple. Buy out all the netherweave selling at below 6 gold. This is effective, as most people do not buy netherweave to make armor. They buy it for making bags. also, since netherweave is not very much farmed extensively, like frostweave, it is at times very cheap, as many just post it on the AH without knowing its real price. But, this also means that there is much less of it, and this means that you can easily control the netherweave market.

Buy out all the cloth, and there won't be anything for people just like me. Since I'm only taking 2-4 gold of profit in every sale, not many can undercut me for long, as I have all the supplies, the netherweave bags, to change the price of the bags whenever I want to.

This is essentially the formula for a good monopoly.
Supply = S
Competition = C
Profit = P
Gold = G
Time = T

G+T=S,
C=P-G
S=C(0)
C(0)=P+G

So, basically, with gold, and time, you have all the mats, basically that were cheaply available. Then, competitors take profit away by lowering the prie of goods, but, with a higher supply, the competition would die out, as there is no more goods to sell, as I have all the supply. That means that without the competitors competeing, there is simply profit!

The key word here is supply. Own the supply, especially the mats, and you own the business. It is a simply thing, even in real life ('gasp). You can't build a car without a supply of iron. Therefore, you can not produce goods without a supply of supplies!

Yes, there are gatherers that try to earn money by gathering their own mats. But, the problem with them, is that they will never, ever match your own supply level, as they only have themselves, whilst you have anyone that sells on the AH. When one can not match the supply level of another, they simply will die out.

A final tip is to never sell things, like BS epics that only a few people will buy. This is because these things never sell, and are expensive to craft, and are impossible to control the supply of.

Imagine you are selling a BOE epic. This means that you must have a steady line of customers. Also, this means that you must control the high level ores market, the titansteel CD market, as well as the orbs market. This is a very large waste of time and money. Sure, it works, but it's easier to do something else.

Why did Rockefeller become so rich? because he had vertical integration, he owned the entire process of refining oil. The only way he can be beaten down is by someone with a larger supply of cheaper, and better oil. This is simply a truth of life.

The key is not to just set your focus on selling quickly and earning a lot of money. It is to own a business. A hungry man can live a day on a fish, but he will live a lifetime with a fishing rod.

I hope that this guide, albeit long, was informing!
Please comment on your ideas and thoughts below!

[skillz noodles]

This is a good guide man, i read through it.

sadly most peoples brains dont work to that capacity and all they got was a wall of text.



+rep

[PiRate7]

damn, indepth. thanks man

[darkzippy]

So actually what this is:
1. Selling netherweave bags = gold
2. Monopoly in WoW = gold

Ain't this comon sense to anyone who has been even a little in getting gold through AH? Its nice that you explain so indepth, but I was like ' Shrug, who doesn't know '. Ive made 150KG through AH only in the last year..

[zealot505]

See, my point was that to make a lot of cash, all the time, you must dominate every aspect of the product you are selling. This includes the mats, as well as all competition. Also, the product must be something that is sold a lot, all the time, as well as something that is very unique to only a few competitors.

See, many people with alts will spend a good 40g for 4 netherweave bags. That's why these bags are so good. They are large enough, and they are cheap enough for most people.

It is very good to control the production of a product that everyone buys with limited competition.

[ladam]

First step would be to get auctioneer addons and start collecting results for your server.

[Monumental]

I didn't really notice a guide here. I just read "Monopolies are good! I own all the netherweave so I make tons of gold."

[Triggerguy]

he ignores Supply v Demand

the more he buys, the more expensive they're going to be.

/thread

[zealot505]

-monumental, please note that that nehterweave example is simply an example, the true meaning to the guide is that to truely be able to make money, you must control every aspect of basically a business

-triggerguy, see, that plays to make me richer. If i buy up all the netherweave, then what used to be 5 gold a stack, turns into 10 or w/e. Good news is, i already have a fair amount of cloth. and can still sell bags for about 10g. This is a bit harder for competition, as they either have to get the cloth at 10 g and sell it for like 12g for minimal profit.

[Overaggro]

That twist is monopolizing the entire process of making the item that you are selling.

You can't monopolize something in a virtual world that is free to everybody to get..... Becouse you can't bribe the mobs not to drop CLoth etc... This is where the guide failed anyway nicely written +REP

[zealot505]

Ty for criticism, but, the thing is, if you make (produce/sell) a product that is very simple to make (mats are only netherweave cloth), and therefore easy to control, and something that there is no stopping of demand, then, you can effectively monopolize the market.

See, as you said, the mobs DO drop cloth, but if they are not competitors, well, good for me, but, even if they ARE, they wouldn't have a stockpile of netherweave cloth. Also, they only have themselves to farm the mats, if they choose NOT to use the AH. Since i buy out all the AH, whenever cheap cloth comes out, the competitor simply has no way to get more, and more cloth easily. Even IF the competitor manages to outbid and get the netherweave, 4 banktabs full of netherweave can not be easily accumilated. This means that even if the competitor undercuts, i can post 10+ bags a day, and still sell, as i have a larger supply of bags, and i have the time to wait out undercut auctions, while my competitor is fumbling with about 30+ bags or sth. Also, an important factor is that no one really bothers to try and be the #1 in netherweave bags, for example, as it is a lower-profit business, but, since no one is doing it, I'm glad to do it, as it makes me richer, with an absence of competitors, prices can go up a high as you want.

If you can not monopolize in a world that everything is free to get for everyone, then, there is no such thing as a monopoly, as everything in LIFE is free to get. It's just a matter of how you get it, and how much more of it you have, compared to others.

You can not bribe a judge, but you can fiddle with the evidence.

[DragonWaxter]

Nah I have to agree with them this is flawed.

[Darkbringer]

Why monopoly doesn't work

This method is somewhat flawed, as it wont work in the long run, but sure - you can make a few gold off it while it lasts.

[egg1337lol]

So you're saying.

You're buying all the Netherweave Cloths and when you do that, no one else will be making bags, due to no mats for them.

So normal price is 5g, but when you buy all mats you'll lose money in the end because of having a monopolized business the mats that randoms are selling, will be high. Higher than what you're selling bags for.

5g stack Netherweave normal, you buy all and then people are putting it up on 15-20g, whilst the bags are yet selling at their normal 10 gold.

So if we flip this around, there would be a thread about selling the Netherweaves to this certain monopoly player.

Low supply high demand=High prices, and with you buying all netherweave, there will only be high prices.

Or did I get this wrong? Quite a nasty hungover atm.

[warsheep]

Sorry for the bump, but I see this to be still relevant.

People are completely misunderstanding this.
The profit goes in selling the bags. And the bags cost a certain sum to produce.
By buying all the netherweave under 6g/stack, you can make a profit.
And now, other people cannot make profit on the bags, meaning that you've got a
monopoly.
If someone begins to sell netherweave for a lower price, you continue to buy, and sell in the form of BAGS for a profit. You do NOT resell the netherweave.

Seems somewhat solid to me. I'm curious as to other places to use this. It interests me how I thought this was completely common sense, but how no one in this thread seemed to get the point.