STOP undercutting.

Well for anything over 50M I only take secure payments, or take actions to get their identity - IP, ID, Card, Phone, etc.

Also I guarantee you I haven't made a loss on 07 yet. Turn around time for RSGP is really low, so even if I hold the GP I bought 2 weeks ago, I'd still make profit today.

You may buy gold at a higher rate than established users because the suppliers gamble that you won't chargeback - and taking a bigger risk = a bigger reward for them (less reputable source of payment -- higher sell price)

Right now your problem is that you aren't trusted enough, and you are paying too much for your gold just due to the fact that you don't have loyal suppliers yet.

When I started out a few months ago I was making next to nothing. As you gain trust and loyal customers the profits will come.

Also - it's in our interest to sell our gold, not yours lol and when we sell more, the overall profit > than a higher individual rate

 

Edit: @pog

If you're simply addressing large gold firms driving prices down, I agree with you there. They can afford to do it because they have the stock and the moderately strong oligopolistic control over the market prices. It's like Kroger, Ingles, Food City, etc versus mom and pop produce shops.

I was just tossing in a logical counterpoint for those who are forced to undercut the already-low prices set by the few major companies who control a huge stake in the gold market. If I were to go sell EoC gp as a completely unvouched gold seller, I'd have to do my best to find a happy medium that didn't rip me off while still allowing me to sell my stock.

Major companies make so much money regardless of a few cent price differences because they offer a quick, easy, an safe buyout for small sellers and pretty much control the entire sales market once they've crowded out competitors. They also rely heavily on seller laziness and buyer ignorance, which are all too common - there are plenty of spoiled kids with mom's credit card who want 500M or a party hat and want it NOW.

TL;DR - My first post was only a quick counterpoint from the perspective of a "small businessman" on Sythe, so to speak. Big companies work the market through personal manipulation and crowding out, as well as being the quickest and easiest (although often not truly the cheapest) gold brokers for your Joe Schmo buyer/seller.

 

Yo - I saw your earlier post -

When i started elo boosting I did it for like 10$ for 100 elo,

do your time and be legit and you'll reap the rewards

 

I'd consider market collusion to inflate profit margins to be price fixing, whether in very nebulous terms like this thread or a more explicit effort.

Some sellers compete on price. For them it's necessary to undercut their competition. If you want to compete on something else, then provide value that justifies the higher price.

 

yet as you say you can end up holding gold for 2+ weeks, so you'd end up only breaking even on the gold you sell now that you bought 2 weeks ago ^_^

working on it, i really am.

I like you, you're a smart guy and you know what you're talking about. But you've basically reiterated my point

 

Heh, thanks :3 You, too. Sorry - I meant to clarify where I was coming from originally and agree with you about "big gold" and its market influence.

 

Yeah and you make extra when the price goes up. You have to account for inventory turnover and manage your exposure to price fluctuation risk.

Keep it up. Good luck. Just remember, you're not entitled to a profit.

 

Something I know I should be keeping in mind, I tend to get frustrated over not being able to make a profit sometimes because I want to start a successful business, but everyone has to start somewhere. :embar:

 

people will always try to get more buyers, smaller sellers will always offer cheaper prices whereas more trusted sellers will offer larger prices in return for being trusted... it balances in a way

 

Frankly, it's business. It's hardly fair to complain if someone is selling cheaper than you. It's part of both business and competition which in the end is always better for the buyer to shop around. That said though, take a look at R2Peasant and some of those trusted guys who continually sell are higher prices but are still making tons in sales solely due to the fact that they've been around for a long time with a good reputation.

 

I love people selling cheaper, plus i bought gold over a month ago at 2.6$ per mill, and i have seen reputable sellers selling at 2.5-2.8$ per mill for ages now i dont know what market your trying to sell your gold in.. Just keep up with the competition. or you will fail.

 

You also have to remember all the gold flowing into the game itself. Remember in EoC, gold just started to overrun the game and the price just crashed to like 30 cents or w/e, I haven't really checked in a while.

Side question, how do you get the Verfied tag?

 

You have to outdo the competition. Someone else can make more money by offering a lower price, he doesn't care if you make money or not.

 

Inb4 heart attack at EoC gold crash. Thank god I dumped all before RS3.

 

There is competition within every market, and if that means undercutting the competition to get a sale with profit, then why not.. not here to make friends and hold hands. If you can't sell at that price, do something about it.

 

Especially with MMORPG market prices wil always go down, down and down.

 

Op is banned and all this thread is, is him batching and moaning over dropped prices. Going to go ahead and close this. Also - Hi pockets!