Monday, January 2, 2012

Buy it Low or High? Sell it low or high? Profit margin? (Part 2 or 3)

Hello, in the last post I talked about buying prices, the advantages, disadvantages, risks and opportunities with each of them. Today I will be going to talk about the sell prices.

 Selling low:
You might feel tempted to be the cheapest seller and get the tickets very quickly, not always the best option but has advantages.

Advantages: Buying costumers will identify you as a cheap seller and come back to buy more.
Disadvantages: Smaller Mythic collection, Lower profit margin. Hard to be a competitive buyer.
Risks: As soon a card value fluctuates up, someone will rush to your bot and take advantage of your underpriced cards, resulting in losing of opportunity to sell at a higher price when cards value go up.

Selling high:
This is the highest profit option, mostly recommended for bots with a huge collection that dont mind holding 1000++ Event tickets worth of mythics.

Advantages: Higher available stock, unlikely that someone will buy a underpriced card on your bots. Allows to buy at a higher price too, while keeping a good profit margin.
Disadvantages: Buying costumers will likely realize that you aren't the cheapest bot around and might never buy from your bot.

Risks: Loss of buying costumers
Opportunities: When a card value rises up quickly, you will have time to adjust the price before all other bots sell them cheaply (like recently sword of war and peace went from 22~ up to 33~, bots that had it priced at about 28 instead of 22, had time to rise the prices before they sold them for 28.)

On the next part I will be guiding you on the advantages and disadvantages of the profit margin differences.

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