Continuing the series on Advanced Strategies today I am looking at The Glyph Wall Strategy. Tomorrow i will discuss how i combat this strategy.
for other Advanced Strategies see Section 7 of Croda's Inscription Gold Guide and indeed for other ideas on the glyph market please follow the link to the free Croda's Inscription Gold Guide
But, moving to: The Glyph Wall strategy – what is it and what is its purpose
The primary purpose of a strategy involving a glyph wall is to ensure that the maximum price of the glyph never exceeds the price that the wall is set at.
Spotting this strategy is quite straight forward. For a number of, or all, glyphs you will see about 6 or upwards glyphs individually posted by the same competitor at the same price, which is normally below the market average for each glyph.
The size of the wall ensures that no matter what the demand at least some of each glyph will still be listed for sale 24 hours later at the wall price.
In effect the fallback price of each glyph is reset downwards and therefore reset the price of each glyph downwards. The effects of this strategy whilst it is in operation is to lower the total profits from the glyph market.
The ultimate aim of this strategy is one of two:
Firstly, it may be to permanently reset the fallback price of each glyph and therefore change the profitability of the glyph market for all participants going forwards. To achieve this aim the competitor merely needs to keep the glyph wall up. The objective is to force some players out of the glyph markets who do not wish to tolerate these lower level of profits going forwards and to keep them permanently out of the market by ensuring the glyph prices do not reset upwards.
Secondly, it may be to temporarily reset the fallback price of each glyph with the aim of forcing some market participants to leave the glyph market and therefore allow the competitor to remove the glyph wall to reset the prices upwards and so enjoy the higher profits that the removed players enjoyed previously.
In any event, the aim is to force a player out of the market and hence the competitor is likely to persist with this strategy unless counter action is taken.
""[quote] The primary purpose of a strategy involving a glyph wall is to ensure that the maximum price of the glyph never exceeds the price that the wall is set at. [quote]""
ReplyDeleteI usually see the wall doing the opposite, its below market average price, I think the goals are to piss people off, and scare competition, but its just a waste of time and money, people still undercut, and you lose possible profit selling so cheap.
One of the issues with the Glyph wall strategy is the time it takes for existing participants to unload their existing stock of glyphs. Scribes will wish to convert all their low value glyphs to cash and will continue to undercut until this goal is achieved. Therefore it may take a week or two until all competitors leave the unprofitable market.
ReplyDeleteyes, all good points. Actually forcing someone to fully leave the market is a hard task and merely lowers the profits for everyone in the process.
ReplyDelete