Experiment in flipping…

I decided to try a small experiment in flipping today. I saw that Greater Celestial Essence was selling for 45g a unit, and Lesser Celestial Essence was selling for 18g a unit. Knowing that each Greater can be converted to three Lesser, the math seemed in my favor:

45g / 3 = 15g per Lesser essence

So, I purchased 10 x Greater Celestial Essence and converted them to 30 x Lesser Celestial Essence. I then posted them in the AH in stacks of 3 (the idea being that if someone needed 1 greater, they could buy my three lessers. No real thought went into that on my end… the number just struck me as a good thing to try at the time.)

At the time I posted the Lessers, there were a couple single posts at ~18g with ten singles posted at 19g by one other person. I went ahead and bought out the 18g lessers and posted my stacks just above 19g. The thought process there was that someone would buy up the stock of the guy below me and then grab mine. Either that, or they would skip his since mine were in stacks.

Several hours later… none have sold. I’m going to see if that changes into the evening when more traffic hits the server, but it’s 10pm now, so my hopes aren’t high. I’m about to log back in and take a good look at things. I honestly just need to sell them for at least 15g a piece to break even (not counting AH fees for the current posts), so I’m not too worried. I can always bark them in trade.

Conclusion:  Know your market!

I didn’t do enough research into the market to know the trends for the items. It was a small test, and selling them at 19g each would have brought me about 120g profit, which isn’t huge. Still… profit is profit, and that can be considered to be lost revenue. 

It was a fun experiment, and was done so that I could learn by experience with a small investment. Now, I’m going to look for something that I can do a similar flip with for much higher profit! … but i’m going to investigate this one much more first!

Z

3 Comments to “Experiment in flipping…”

  • Just learned about your blog from your comment over at anaalius'. Welcome to the glod blogging community. I am fairly new myself and have found everyone in the community to be very helpful and encouraging.

    I've added you to our blog roll over at Power Word: Gold. I look forward to reading your current and future posts! -flux

  • The up side of a flip attempt like this is that the risk is somewhat minimal as you can always convert and re-convert them up or down depending on which form is selling for more at the time.

  • hiya 🙂 I'd try posting them as singles at the higher price – it's too easy for someone to see the greater's at 45g then your stack of 3 lessers at 50g. Also by posting as singles, you get the peeps who are buying mats to get a scroll done & don't know about the conversion bit or the ones who have 2 lessers already & just want 1 more so they can convert it themselves.

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