There is no concept in World of Warcraft for how to measure what level of profit you should make to cover the risk you are taking. For the record, in the real world it is about 2% (10 year US Treasury yields).
However, in World of Warcraft i am able to determine what level of profit you should make for each hour of time spent.
i do this with reference to gathering herbs. Though it is not without its flaws.
I can gather 20 stacks of whiptail in an hour. I can sell those at present for 40 gold a stack (2 gold a herb) over a 24 hour posting on the auction house. Therefore, for each hour of gathering i can earn 800 gold.
Therefore, i determine that my gold making activities must make more than 800 gold per hour else i am better off gathering.
Following this through a bit more. At present, the supply of herbs is low, hence i believe i could gather for 2 hours a day and therefore sell 40 stacks of whiptail each day at 40 gold a stack for 7 days (i.e. 2 hours gathering every day).
That gives me 11200 gold per week.
Therefore, i determine that if i spend 2 hours a day on gold making activities then i must make over 11200 gold per week – else i should revert to gathering.
Though markets are slow, my Inscription profession is earning me over 11200 gold per week at present before i add in the profits from Enchanting and flipping.
Now. You say that your weeks gold pot is around 11200 (more/less, depends on market quality).
ReplyDeleteLooking at my example. Im just sitting at ah. Buying low, selling high. My average day earning amount is +/- 10k. For about 1/2h of work, and fast reposts. That shows, how crafting and resale works better than gathering. Just my point of view.
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Delete@Arleqin almost. What I am saying is that if my gold making activities do not earn me more then 11200 per week then I should resort to gathering.
ReplyDeleteWhat I am attempting to do in this post is determine what my minimum acceptable gold per hour should be given what I can earn "risk free" from gathering.
As you demonstrate, you are no where near having to make this decision given your gold per hour from crafting.
@croda almost. What he was saying is that sometimes gold per hour isn't a very helpful measurement. Spending an hour gathering requires substantially more effort than an hour AFK snatch-listing at the auction house. So rather than saying, "I could be making 800g/hr gathering, therefore anything I do that yields less than that," one often wants to think, "I can make 600g/hr just by sitting here with realtime search and game sound on. This > Gathering."
ReplyDeleteI agree with this sentiment. Thoughts?
@Cannon yes, that is a sound argument. If you can make 600 gold per hour by this method and this is your desired method then that would be your benchmark for other gold making activities.
ReplyDeleteIn a sense seeking a benchmark for gold per hour is down to individual preference. But as long as one can find that benchmark then one at least has something to shoot against.
Thank you for your reply :)
I like this equation. A bit hesitant to apply it to my own methods and see I've been spending too much time on something I shouldn't, but ah well.
ReplyDeleteQuestion is do you buy your herbs for inks off the AH or farm them yourself?
(Stop eating my posts, blog!)
I buy the herbs off the AH. If I farm I can at best do 20 stacks of whiptails an hour which is enough for 40 glyphs - and that would only really be useful if there was a herb shortage and hence glyphs started to be priced at 100 - 150 gold each.
ReplyDelete