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Saturday, March 19, 2011

My Guild Bank is a Rainbow

Vayaz said . . .
It seems to me that all those guild banks full of stuff (got 6 or 7) are eating a lot of my liquid money. Or perhaps that's normal and I simply have to spend more time selling things.

How many guild bank tabs full of stock do you have, if I may ask?

Vayaz (click here for Vayaz's blog) left this comment on my most recent post and I realized it's not something I've ever really talked about.  Some gold makers have banks and banks of stock while others work with what they have on hand. I've found a happy medium that works for me, and here's how it all works out.

The "Stockpile"
Honestly I don't really stockpile all that much. I think it stems from my fear of risk.  "Ooooh, all this X is really cheap. But what if tomorrow it's even cheaper? What if they nerf something and the market tanks? What if what if what if?"

I don't like taking risks and, generally speaking, stockpiling is a form of risk in my mind.  The only time I ever truly stockpiled something was because it was completely risk free. Elementium I would consider stockpiling in a similar fashion. Because it's currently under the vendor value I consider it risk free investment. I've been investing in it as though stockpiling, but with the amount of time I've had to prospect lately I don't tend to keep it around long enough for it to be considered a stockpile.

I keep a small amount of most low level enchanting mats on hand, enough Embersilk to do Dreamcloth on both of my tailors.  I have a small amount of herbs and ore that I clear out everytime I go on a milling/prospecting spree which happens every few days; usually less than 200 of each Volatile on hand, and that covers most of my "other" items.  Glyphs I don't often stockpile, they move quickly but I am able to find enough time every day to replenish what I sell and not having each glyph posted constantly gives them time to rebound if undercutting has brought the price down.

The closest thing I come to a real stockpile is gems.  I have about 100 uncut blue-quality Cata gems on hand at any given time and 300 of each green-quality as a bit of a "rainy day" fund if I ever need to cut and vendor for some fast cash, cut and DE for quick DE mats if the market goes wonky, etc. etc.

You should stockpile!
I see great value in smart stockpiling. Though my server has not experienced it yet many servers have seen a banwave of mining bots and the ore prices have jumped back up to "normal."  When this inevitably happens on my server I'll have my small stockpile of gems but I'm sure I'll be thinking to myself "Why didn't I snatch up all that 40g ore when I had the chance?!"

The main reason is that I don't like the idea of huge investments. I'd rather take small bites. Maybe that means the stockpiler will get 3/4 of the pie, but I can enjoy and savor my little slice of the pie just the same.

I know the markets I work in very well and I am usually pretty good at knowing how the markets will fluctuate with days of the week, times of day, patches, etc.  Because of this I'm experienced enough to know I always have enough stock on hand to meet my demand but never get caught without inventory to sell.  While I see tremendous value in stockpiling, it's not for me at this point in time.

Below are screenshots of my guild bank tabs with a description of what's in them and "why."



Tab One is my random enchanting mats and my embersilk and other associated taioring supplies.  All of my Cata enchanting mats are on my enchanter so this is where I store the "I don't usually need it but I want to keep it handy" stuff.



Second tab was meant to be ore but since I've been prospecting all of it so often it's become an overflow tab for cut gems.  


This is the "random herbs that have yet to be milled" tab, as well as my elements.  And, with all this prospecting, as you can see, more need for overflow room.


As you can see this tab is full of every epic mount you've ever wanted. I mean, um, gems. Many cut gems.  I pre-cut 7 of my lesser demand gems and 14 of my higher demand gems.  I do this even though it kills my space because generally in peak gem sale times I'm on Faid in a raid and can't be on my JC cutting gems to restock so I want plenty on hand to cover rush times.


More "mounts."


I'm addicted to "mounts."



I have other guild banks with things like cross-faction recipes and then a guild bank with my leftover saronite and eternals but I feel the stock is not great enough or unique enough to really warrant screenshots of it. Just picture way too much Saronite and Eternal Shadow.

Thanks for the question Vayaz, I was glad to talk about my stockpiling, or lackthereof.  If anyone ever has any questions please feel free to leave comments or contact me via the contact info on the right.

8 comments:

  1. The one thing that struck me most - OMG! How tidy are you? lol My guild bank looks like a kid's been thru their playbox, just throwing stuff in at random!

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  2. @Nev - It's my theory a clean guild bank is one that you don't have to spend much time in. Things have their place and are easy to find sell or process.

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  3. My bank and bags are starting to look about the same... I hate having all this stock in my banks but in the end, I'm sure it pays off.

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  4. "cut and DE"

    good luck with that ;)

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  5. I tend not to keep much inventory since the nature of wow is all the assets depreciate. The only time you get lasting appreciation is when blizzard makes an external change that affects the supply or demand.

    With the price of ore dropping (I haven't noticed any lack of cheap ore after the bot ban), gems are only going to fall farther in price.

    The same is true for any good in wow as an overall trend. Most goods usually have weekly or twice weekly spikes centered around heavy raiding days, but if you look at undermine journal, pretty much everything has a net downward trend.

    Of course, wow is also inflationary, so the value of your gold decreases too, but I think at a slower rate than the value of the goods. Of course I don't have empirical evidence to support that claim.

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  6. @Nev: Heh, having a well-sorted bank makes it easy for me to see what I'm running low on for fast and easy restocking!

    @Anonymous (2:42 PM March 19) - Thanks! Usually I AH the blues but the green jewelry and Carnelian Spikes are amazing for DEing.

    @Anonymous (7:37 PM March 19): Definitely an interesting thing to think about. However, those external changes to supply and demand certain exist. (Glyph of Mage Armor comes to mind.) Granted, that one was a fluke but, there are certainly examples when it was beneficial to have s stock of something!

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  7. For sure, they do exist. Shamefully, I don't actually have a character with Inscription, so I'm not too familiar with that market.

    If you know when shifts in demand or supply are coming (ie patch notes or some guesswork) this is where you will hit your highest gold/hour in wow. The problem is they don't occur often, so it's hard to make a consistent amount of gold on this basis.


    Of course, stock piling is also worth it if you think the price has hit bottom. Saronite ore hit a stable bottom in LK, since at some point it's not even worth a bots time to collect it. In these cases, especially with herbs, you could get a large profit margin during demand spikes.

    I'm curious what ore is going to bottom out at, because right now on my server I can regularly find 60-100 stacks a day that are below worst case prospecting price. I've been finding stacks for 25-35g every day. Gems are also cheap on my server, so the only one that is deed is carnelian (inferno ruby costs just over 30 so the transmute isn't worth it for me compared to GCE).

    It makes me wonder how many people are shuffling the ore, since a significant portion of the money made doing it is from vendors, which is inflationary. Depending on these peoples propensity to spend, they could have a significant impact on inflation, which would actually decrease other players net worth. Plus we also have guild bank free money too.

    Not really useful for gold making, but whatever.

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