Guild Wars 2

So recently I began looking into crafting for my GW2 endgame. I was surprised to see that the costs to create exotic material was so cheap compared to the prices from selling them.

I’m selling Berserker’s Emblazoned armors, and I noticed the cost to create the armor is less than to sell.

5 Vial of Blood = 66S
5 Ecto = 94S
6 Goss = 46S
20 Spool = 12S
____________
Cost= 2.18 GOLD

However, after checking people’s bids for certain armor pieces, I found they sell for up to 2.55 GOLD!

With minus 8S as tax, we gain 2.47 worth of gold.

So with simple grade 2 math:
2.47
- 2.18
_
0.29S

In less than 10 minutes, without combat, we can make nearly 30Silver! On a lucky day, we can make more money than CM Pre-Nerf! Heck yeah!

Black Lion had a pretty rocky start, but now that’s it’s finished, I’d say it’s good enough to compete with MannCo! Thank you ANET, for the power traders’ wet dream come true!

I can’t tell if this is an attempt to inflate that particular market cause if not… you probably just did for all those crafting materials. Some things you really should keep to yourself.

Considering the fact it’s dumb for my profits to have posted the story period, I’m obviously not trying to inflate anything.

If anything, I see prices of Blood continuing to decrease because they are overfarmed.

I’m not an economist. Just trying to share my story and hopefully inspire others to do more than sell their mats.

Kain Francois.4328:

Considering the fact it’s dumb for my profits to have posted the story period, I’m obviously not trying to inflate anything.

If anything, I see prices of Blood continuing to decrease because they are overfarmed.

I’m not an economist. Just trying to share my story and hopefully inspire others to do more than sell their mats.

I say inflate because people when they read this tend to jump on the bandwagon for the listed item pretty kitten quick, which will probably mean the armor will probably tank in price because of increased supply while the price for the materials will increase because of the demand.

Though it was definitely inspirational.

.. you lost money

to just break even, the resale value needs to be ~118% of the cost of production. in your case 257.47silver

You can use pretty much any mat, honestly.

Carrion armor is made with VERY cheap bones.

With some VERY quick and dirty number crunching, I estimate the total mat costs 1.52G. But I sold a Carrion armor piece for 1.92G or so. Minus the tax and I’d say that was a profit between 20-30s too, and it was a lot less of a gamble than blood.

Why leather in particular is because leather is the cheapest and most widely available compared to Gossamer and Orichalcum.

forgot to add in the armor pieces to go with teh emblem and ah is 15% not 10%…

If you’re buying materials for 218 Silver and selling the end-product for 255 Silver, you are actually losing 1.25 Silver.

Net profit = [Sell price*(100%-15%)] – Cost
[255 * .85] – 218 = 216.75 – 218 = -1.25

/edit – Doing the same for your bones armor, you get a net profit of 11 Silver. But if you keep announcing these things here on the forums, I’m sure you’ll find the margin to be much lower.

Actually MF Panda you are wrong – on those buy and sell prices he is breaking even. There isn’t a 15% deduction on both listing and selling. The fees are 5% on listing price and 10% on total sale price (many people say the tax is 15% but its actually much more than 15% depending on what the item sells at.

reference:

http://wiki.guildwars2.com/wiki/Marketplace

The calculation is difficult to do manually but there is a great GW2 app you can download for android that does all the calculations for you called the “GW2 Trade post calculator”

I wonder, how exactly did he got 8s tax. 5% is 12.75s, 10% is 25.5s, 15% is 38.25s.
I have no idea, really.

Ephiny.9831:

Actually MF Panda you are wrong – on those buy and sell prices he is breaking even. There isn’t a 15% deduction on both listing and selling. The fees are 5% on listing price and 10% on total sale price (many people say the tax is 15% but its actually much more than 15% depending on what the item sells at.

reference:

http://wiki.guildwars2.com/wiki/Marketplace

The calculation is difficult to do manually but there is a great GW2 app you can download for android that does all the calculations for you called the “GW2 Trade post calculator”

It is exactly 15%, especially for high cost items. You have no idea what you’re talking about.

Yeah, while rounding can significantly affect the actual net revenue for cheap items, rounding to the nearest 0.0001 gold obviously doesn’t have a significant impact on the math you do with amounts over 1g.

Example – you buy 100 coriander seeds for 1 silver
total cost = 1g

If you sell those seeds for 1s 50c each
total proceeds are 1g 50s and gross profit is 50 silver
however listing price is 7s 50c (5% of 1g 50s)
sales tax is 15s (10% of 1g 50s)
net profit 27s 50c and total received is 1g22

Ephiny.9831:

Example – you buy 100 coriander seeds for 1 silver
total cost = 1g

If you sell those seeds for 1s 50c each
total proceeds are 1g 50s and gross profit is 50 silver
however listing price is 7s 50c (5% of 1g 50s)
sales tax is 15s (10% of 1g 50s)
net profit 27s 50c and total received is 1g22

As i said exactly 15% and there is nothing comlex here.

Ephiny:

I don’t see how that is any different from what I did. I simply multiply the listed sale price by .85 (i.e. 100%-15%). This takes into account the listing fee in addition to the 10% tax in one simple calculation.

aaand by this the seller just lost a few money without realizing it o.o

MF Panda.5874:

Ephiny:

I don’t see how that is any different from what I did. I simply multiply the listed sale price by .85 (i.e. 100%-15%). This takes into account the listing fee in addition to the 10% tax in one simple calculation.

It seems he have some wrong calculations

Example – you buy 100 coriander seeds for 1 silver
total cost = 1g

If you sell those seeds for 1s 50c each
total proceeds are 1g 50s and gross profit is 50 silver
however listing price is 7s 50c (5% of 1g 50s)
sales tax is 15s (10% of 1g 50s)
net profit 27s 50c and total received is 1g22

you pay 7.5s listing fee.
your account is now -7.5s.
Sale tax is 15. You sold item, received 150-15=135s from TP.
Add to your account 135+(-7.5)=127.5s

From where did he get 122s, i don’t know

Maxster.4521:

MF Panda.5874:

Ephiny:

I don’t see how that is any different from what I did. I simply multiply the listed sale price by .85 (i.e. 100%-15%). This takes into account the listing fee in addition to the 10% tax in one simple calculation.

It seems he have some wrong calculations

Example – you buy 100 coriander seeds for 1 silver
total cost = 1g

If you sell those seeds for 1s 50c each
total proceeds are 1g 50s and gross profit is 50 silver
however listing price is 7s 50c (5% of 1g 50s)
sales tax is 15s (10% of 1g 50s)
net profit 27s 50c and total received is 1g22

you pay 7.5s listing fee.
your account is now -7.5s.
Sale tax is 15. You sold item, received 150-15=135s from TP.
Add to your account 135+(-7.5)=127.5s

From where did he get 122s, i don’t know

I think they accidentally subtracted the net profit from total proceeds (122.5s) and rounded.

everything is rapidly moving to "no profit’(as it should)

The market is is still developing so there are still inefficiencies popping up but they are rapidly disappearing.

It’s not a complex calculation that needs to be done in multiple steps.

Assuming the item is sold (best case scenario in terms of profit), all fees are effectively paid when you list the item. You pay 5% of the sale price upfront. 5% of that price is removed instantly from your inventory. You pay 10% tax on the item when it actually sells. This 10% doesn’t come from your inventory, it comes from the buyer. But you have to calculate it anyway. And just like the listing fee, it’s based on the sale price.

Added together, when you list an item, you can only count on getting 85% of its listed value (100% – 10% – 5%). Thus when you are figuring out your net profit, you can simplify your calculation by just saying

[gold gained – gold lost] = [(sale price)*(85%) – cost]

Unless I’ve gone completely bonkers, this couldn’t get any simpler.

To reiterate, his first example has a sale price of 255 Silver. 85% of that is 216.75 Silver. This is less than his listed cost of 218 Silver (i.e. he loses money).

With the bones example, he lists a sale price of 192 Silver. 85% of that is 163.20 Silver. This is 11.20 Silver over his listed estimated costs.

There is no voodoo to this stuff.

Ephiny.9831:

Actually MF Panda you are wrong – on those buy and sell prices he is breaking even. There isn’t a 15% deduction on both listing and selling. The fees are 5% on listing price and 10% on total sale price (many people say the tax is 15% but its actually much more than 15% depending on what the item sells at.

reference:

http://wiki.guildwars2.com/wiki/Marketplace

The calculation is difficult to do manually but there is a great GW2 app you can download for android that does all the calculations for you called the “GW2 Trade post calculator”

Here’s the app if you don’t have a smartphone

Using that I got the same end result as with 15% tax with a regular calculator so… yeah. It’s pretty easy to conclude in-game; if you list something for 1g, you get 85s

Ghoest.3945:

everything is rapidly moving to "no profit’(as it should)

I love these sweeping declarations.

As with ANY in-game market that has both a large contributing player base, AND a sufficiently diversified product inventory, there will ALWAYS be profit to be made – at least for those willing to do their homework. Even a market that reaches equilibrium will have enough price fluctuations and variance in supply to make a profit relatively easy to turn.

I have to shake my head at all the “the [my product of choice] market is broken, please change X to fix it” posts which run the gamut of “make listings expire so mine can be on top”, or " get rid of the fees because I can’t find a profitable way to make trades with them in place", or my favorite – “get rid of custom bids”, yada yada.

As I see it, there are only 3 things “wrong” with the current state of the market:

1. The overly large influx of goods due to botting/gold sellers (which I’m sure will be addressed asap).

2. The “Last-in, First Out”/stacking system (or whatever we’re calling it now) which is so easily exploited (a “day trader” could easily turn 2-5 gold an hour or more if they wanted to by exploiting this).

3. The overall design of the UI which needs some TLC, along with some added features for convenience (total outstanding after-tax value of sell orders, etc.)

Once the bots are handled, and the market reaches equilibrium (which will probably take another 6-8 weeks), there will STILL be more opportunities than time on the TP – but again, only those willing to do a bit of homework will reap the benefits.