A Big Secret
Let me let you in on a little secret. I'm not sure if the PC has this problem, but the auction house on XBox One is really bad. Yes, I said it. It's horrendous! Now you may wonder why this is important. It's very simple. It's extremely difficult for people to find items on the auction house. It's not an enjoyable experience. Before I spill the secret of how to master making bank on the Neverwinter Auction House (NAH), check this out.
This is the results of a random search for the leadership profession items. Did your eyes naturally jump to box A? It probably did. My eye always go there! It's the first result, and it's normally the cheapest item. This is where you want to be. This the secret! Do anything possible to own that position.
Now let's discuss box B. There is no buyout price. The seller is saying, let the market determine the final price. I think this is an anti-pattern for non-scarce items. If we searched for siege engine, there's probably a ton of them. Even if this is the lowest priced item, the seller is making the winner wait 17+ hours to get it. This is slow money and I stay away from it.
Own Box A
I cannot over state the importance of the position of box A. Until you are completing epic dungeons and getting epic gear, there's tons of competition for the items you are moving through the NAH.
One item that I owned box A for was Radiant Enchantment Rank 5 (RE5). I could always sell those consistently. Before the level increase from 60 to 70, this was a monster.
Before the patch this item routinely sold for 3,500 astral diamonds (AD). After the patch, RE5s are moving around 500 astral diamonds per sale. For me, I could still own box a for this item, but I moved on to other items. I have another use for RE5, and I will share that in a future post.
How did I always move RE5 before the patch? I would sell radiant enchantments priced at 3,000 astral diamonds. Because of the this approach, I could never keep any RE5 stock up for a long period of time. Most people mentally had the priced fix at 3,500 AD, but for me I was happy with 3,000 AD. I will share why I was okay with this in a bit.
If you really want to sell your items consistently, you have to price your items aggressively. When I say aggressively, I mean you have to take some AD off the table to move the items fast. In the example above, because I'm pricing the RE5 so cheaply, I'm loosing 500 AD for every item.
Let look at the math. For 10 sales, I net 30,000 AD and give up 5,000 AD. For 100 sales, I net 300,000 AD and give up 50,000 AD. You may say, whoa, you are give up 50,000 AD for 100 sales. I can rationalize this behavior with an expected value (EV) calculation.
EV)(Let's take the 100 sale example and dive deep. I would say 100% of the time can make my sales quota of 100 sales with RE5 being priced at 3,000 AD. I would say 60% of the time I could make my sales quota of 100 sales with RE5 being priced at 3,500 AD. Why? Everybody else is at that price and you will have someone that would uncut the market a delay your sale or cancel it out all together. We could really argue the minutia of my example, but I will stay this. On average I can sell 100 RE5 for 3,000 AD (A) for every 60 RE5 I can sell at 3,500 AD (B). B is really 100 sales being 60% successful. Which is really 60. See simple clean math!
The EV calculation for A and B is:
A = 3,000 AD * 100 = 300,000 AD
B = 3,500 AD * 60 = 210,000 AD
Yes, the math is fuzzy and I'm ignoring certain statistic, gaming theory, and other importance variances. But, the math is good enough for this situation. The math is justifying why you should aggressive price items at a discount. In this case, I'm pricing RE5 at a 16+% discount (3500 - 3000)/3000 or 500/3000. Because of how I price, I'm gaining 90,000 AD (300,000 versus 210,000 AD) for every 100 RE5 I decide to sell.
Hopefully this give you some insight into how to price items to make a ton of AD on the NAH. If anything wasn't clear or you would like a more in-depth explanation, please comment on this post or reach me through the contact form.