WoW Millionaire: Undercutting

WoW Millionaire is a World of Warcraft gold guide which is designed to people who feel that their knowledge about getting gold isn't good enough. In WoW Millionaire, I'll give tips, auction house lessons and other things about WoW economy. You can usually find a new post every week of the WoW Millionaire guide. WoW Millionaire is provided free by wow-pro.com.


While Shika seems to be a bit busy with RL, (and lazy Sticking out tongue) his gold posts has become abit rare, I'll be sharing my experience while waiting. So for this first time post, you're gonna learn about undercutting, and what it is used for. Undercutting is the most basic thing I could think of if you wanna be a succesful auctioneer, that's the reason why I choosed that.

So, for those who don't know what undercutting is: Undercutting happens when players beat each other prices on an auction at the Auction House. If player X sells something for 10 gold, player Y which have the same thing will usually try to sell it cheaper (like 9g90s). The buyer will always buy the cheapest nevermind what. So by Undercutting player X's auction, player Y gets the gold, but 10 silver less than player X would get if player Y didn't undercut him.

but 10 silver less than player X would get if player Y didn't undercut him is the key word to why Undercutting is more tricky than it looks like. Why is not always good to always win on the market? Let me tell you why: There is several strategies for selling at the Auction House, the most common AND easist is undercutting. When you undercut, you reduce the demand of the item. So the dangerous part of undercutting (that you might already understand after reading the text in italic just beyond) is that the price may fall too low, because you keep undercutting the currently price.

Good things of undercutting:

Bad things of undercutting:

Undercutting is normally used of people who:


I'll give you two examples on how undercutting can be used, and when it should NOT be used.

Example I (When it should be):

Example II (When you shall not)

The 2 examples is some very common ones, I've tried them both. The Arcane Dust back in the Burning Crusade were most of the disenchanters finally hitted level 70, and the iron one recently on my server.

Conclussion:
Undercutting is a good method for the beginner auctioneer. Being a undercutter is easy and simple, and you almost win every time. But if you wanna control the market, this might not be the best way to go, it is possible but you more likely wanna Monopolize it. Taking control of an already controlled market with Undercutting, is very optimal, but if you wanna keep the market yours, it's not the best way to go in my opinion.

So hold on for the next post, I'm gonna talk about Supply and Demand!


WoW Millionaire is a World of Warcraft gold guide which is designed to people who feel that their knowledge about getting gold isn't good enough. In WoW Millionaire, I'll give tips, auction house strategies and other things about WoW economy. You can usually find a new post every week of the WoW Millionaire guide. WoW Millionaire is provided free by wow-pro.com.