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Reply The Forest Marketplace: A Place for Guild Trade: Run by Pettyness
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Pettyness
Crew

PostPosted: Fri Jun 22, 2007 9:42 am


Hello all! My name is Pettyness and I intend to teach you some of the basics of making money in the market place. There is a great guide already on one of the main forums here.

In fact I will let you use this as a starting guide if you are completely new or unfamiliar with trading and the market place. It is a long read and probably overall more thorough than what I plan on writing. I plan on sharing simple principles and tips I have picked up on my continuous (it never really ends right?) journey to making my dream avatar.

Stay tuned as I continue to write this guide for y'alls benefit smile I will probably be updating this periodically so there will be modifications and reorganizations of the information as I polish it.
PostPosted: Fri Jun 22, 2007 11:03 am


I do not plan on holding your hand all the way through the process. I expect you to know the basics of trading on the market place such as having a vending license. Hopefully you already know how to crawl and this information will get you walking on your way to having the items you want without begging for it. I suggest you have 1.5k-3k before you try to do this program. You need money to make money and this will provide you with a nice starting point.

One of the keys of being successful in any business environment is to know your products and your consumers. Product knowledge will be the key to making money in the market place. More specifically it is crucial that you know the going market rates for items you plan on buying and selling. The KEY is to buy low and sell high. Sounds simple enough right? Well it is and it isn’t. The problem is that the law of supply and demand has the market prices fluctuating constantly.

There are several ways you can obtain this price information. Personally I find just looking up the product in the market place is the best way to find this information. Be sure to sort the product by “Lowest buy price” so you may see what the lowest buy it now prices.
User Image

As you can see it lists the items by the lowest buy it now price. This information should let you know the relative market value of an item you plan on selling.

Now that you know how much the lowest buy it now price is listed as you know the least amount of money you should make for the item. I suggest you keep track of how much you paid for an item. Also NEVER pay more than the lowest market price for an item. The important thing to consider is your profit margin when selling your items. Ideally you want to make as much as possible 100% or double your money on every sell would be great. Unfortunately it doesn't work that way. Generally you're going to make 5-10% profit margins on each sale. In other words if you pay 1000 for an item and sell it for 1100. You will have made 100g profit which is a 10% profit margin (100/1000 ... Profit divided by purchase price). While 100 gold may not seem like much, do this 100 times you will have made 10,000g. Still think this is a small amount?

Don't be discouraged if you aren't making alot of money at first. It takes time to build a proper bankroll. It's important that you do not spend your profits on the items you want until you reach a reasonable goal. What's reasonable you ask? Well that depends entirely on you. I set mine to 50k before I start "donating" some of my profit to outfitting my character. One thing to keep in mind is that the higher price items will bring you more gold per transaction than lower priced items.

When I first started I bought alot of the following items: Mimzy, Syaoran's Cloak, Soot mask explode, lucky star, and Mokona hat. These are nice low priced items that are constantly on the move (being bought and sold). Its important to start with items that move fast since the more transactions you have, the more money you make. You want to try to buy these items at a sub 250g price. Though the price has fluctuated a bit, they seem to sit comfortable at 300 (this applies to the cloak, soot, and mimzy). SO if you can find a cloak for 200, you can probably sell it for roughly 300. You would have 50% return on your investment. The market prices do fluctuate 20-80g in either direction but over the last week it's been relatively stable.

Pettyness
Crew


Pettyness
Crew

PostPosted: Fri Jun 22, 2007 11:08 am


Here’s an example with mimzy
User Image

As you can see the mimzy’s going rate is actually near 400 at the moment. Theoretically you want to make at least 5% profit margin on a sale. So the absolute highest you should pay is 380 (400 x .05 = 20) so you can sell it back at near 400. However on lower priced items such as this, you’ll want to make at least 10% so 360 is the highest you want to pay. You have to account for market fluctuations and falling market prices. Anyone who sales on the market place knows you generally must have the lowest price to sale your item. In the end it becomes a matter of patience. How long are you willing to let your gold sit in the item that you have not sold?

Ideally you don’t want to let it sit there for very long but sometimes you must wait to allow the price to go back up. Since so many people are selling as well, you will have to battle others the lowest price. The problem is you can’t go too low since you want to make a profit. Here’s another snapshot of mimzy
User Image

As you can see someone listed mimzy for 300 and 350. You want to grab the 300 price mimzy and immediately sell it back. Most likely the price you sell it for is anywhere from 349-400. A 16-33% profit on the item. Get the idea? You want to do this over and over and over. You’ll make enough eventually to horde items and sell them only when the price is at a high point.
PostPosted: Fri Jun 22, 2007 11:28 am


Now imagine the mimzy examples except now you are trading clouds. I generally buy clouds at 11-11.5k. I try to sell them back at 11.8k and above. The margin seems to come less important as you move up in the price of items you buy and sell. I like to make at least 400 for every item I move. I make 5,000g every 20 times I do this. You can easily do this within an hour of trading.

Again I must stress that you do not buy items you want to wear because you reduce your investment money. Sometimes you'll see a bargain that you simply cannot pass up. As you do this more and more, you will become familiar with the range of prices for items you come to specialize. I personally specialize in dark stars, western zodiacs, and clouds. I know a low price/bargain when I see it and buy it immediately if I happen to be the first to notice. I immediately turn around and sell it back for a nice 5-20% profit. This equates to 500-2000g per sale. You'd be surprised how often these deals appear.

I'm running out of time for now so I'll sum up some tips for now and expand on them later when I have time next week.

  • I failed to mention that when you are selling items, be sure to use the "Buy only" option. That way you get the price you want and there is no chance someone can get your item for lower than you intended.
  • Find the general market price for items you want to buy and sell
  • Buy it low and sell it high
  • Do not spend your money on items you want to use until you reach your goal
  • Use a browser with tabs and refresh the items you want to watch
  • Try to make at least 5% profit margin per sale as you begin your adventure
  • Be aware that some items though being a great bargain, may be difficult to sale. Make sure there is more than 3 pages of the item. Otherwise it may take some time to resell the item.
  • Try not to invest all your money in a single item since the risk of not being able to immediately resell it stops your flow of money.
  • Be vigilant in staying on top of the market prices
  • You can also bid on items. When trying to outbid a person, jump more than the minimal amount. Keep in mind that getting 300g profit instead of 400g is still better than zero profit
  • Specialize in a few items until you move your way up. Expand only as your bankroll increases. Explore around you may find other items I have not listed that make nice profits and turnaround (how quickly you buy and sell)
  • Have fun while you're doing it. Think of it as a game. The fastest and most informed win the prize. The prize is money and money buys your items.


I hope this was helpful. I will add more as I discover some secrets myself. I'm currently trying to see the trend with time of day. Items sell at different prices at different times of the day. I think i've seen a trend but I must continue to research to make sure. If you have questions, feel free to pm me or just post here.

Happy Hunting!

Pettyness
Crew


Miss Em Malicious

PostPosted: Wed Jun 27, 2007 12:41 pm


Well, what type of item is really selling high right now and would be a good profit if I could buy it at a low price?
PostPosted: Wed Jun 27, 2007 12:50 pm


Well it kind of depends how much money you have to dedicate to investing in items. Tell me about how much gold you have and I can work from there.

Pettyness
Crew


Miss Em Malicious

PostPosted: Wed Jun 27, 2007 12:55 pm


14,000 so far.
PostPosted: Wed Jun 27, 2007 12:58 pm


oh wow.. alot more than I expected smile . Well.. let's see when I was around that range I sold alot of coon tails and angel collars. I have a bunch of coon tails that I can sale to you for 2000. I generally sell them for 2200-2500 depending on the market. It's a decent profit margin for a smaller item.
Angelic collars have gone up quite a bit. If you can find one for below 3500, you should be able to sell it for around 4000. Pay close attention to the prices listed.
Lucky stars are a great item too. I still make money off them. If i see one for less than 575, I buy it knowing if I'm patient I can sell it for 650-700. I sold about 30 of these 2 days ago smile .

Pettyness
Crew


Pettyness
Crew

PostPosted: Wed Jun 27, 2007 1:03 pm


You should list items with the "time remaining" option. It'll show the items that are ending soon. You should sift through the different items and find your own niche market. My roommate found a few last night and he's making a bit of money.
PostPosted: Wed Jun 27, 2007 1:04 pm


Wow.
So, if I buy the coon tails and hats off of you, I should be able to make all the gold back?
That'd be great!
Let me go look for Angelic Collars, as well.

Miss Em Malicious


Pettyness
Crew

PostPosted: Wed Jun 27, 2007 1:08 pm


Yeah just send a trade with the amount of gold to pay for the items and i'll send you the items. Beware though, the coon tails do take time to turnover sometimes. The price is below 2200 right now so it would be best to wait till it's over that amount. You can buy it now and sell later which is the best thing to do. I've sold a few today but I must wait for the price to recover.


It's all about watching the market fluctuations.
PostPosted: Wed Jun 27, 2007 1:17 pm


Ahh, alright.
I shall definitely do that.
And angelic collars are rather expensive, but I'll keep them in mind when wanting to sell items.

Miss Em Malicious


Pettyness
Crew

PostPosted: Wed Jun 27, 2007 1:24 pm


With the Mokona hats, you can sell it now for most likely 560 or wait just a little bit and make an extra 30 gold per hat. Take a look at it listed with "lowest buy price" and you'll see someone is trying to undercut the next lowest by about 30. Chances are someone will buy it and if you list just below the other ones, You should be next in line for a sale.
PostPosted: Wed Jun 27, 2007 1:29 pm


Alright!
I shall try. o.o

Miss Em Malicious


Pettyness
Crew

PostPosted: Wed Jun 27, 2007 1:29 pm


Oh as far as items go.. I generally deal mostly in monthly collectibles. IT really takes time to learn the different items but if you're like me and nothing better to do, it becomes fun smile
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The Forest Marketplace: A Place for Guild Trade: Run by Pettyness

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