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Thursday, 12 June 2014

Buy fair, sell fair

I hear this a lot "Buy Low, Sell High"

Nothing wrong with that as a strategy except that it does not often happen.

Perhaps a better method is to "Buy Low, Sell Fair".  Or better still, "Buy Fair, Sell Fair" as long as it makes a profit.

Clearly, the definition of Fair is up for discussion - but for our purposes lets assume it is the normal price of an item in a region.

The advantage of "Buy Fair, Sell Fair" is that there are ready sellers of items at a fair price in one region, and then there are ready buyers of an items fairly priced in another region.


My entire business strategy is based on this.  I buy items in Jita from sell orders others have posted and then i post these items for sale in the other trade hubs at fair sale prices for those regions.

For sure "Buy Low, Sell Fair" will make a greater profit per sale but it does require you to put Buy Orders up which will not be filled immediately.

An added benefit of the "Buy Low/Fair, Sell Fair" is that it steers you away from scams.  Most scams are based on "Selling High".

2 comments:

  1. Definition of 'fair' seems a bit murky. I imagine that when you notice items for sale across regions at a 41% markup, you wouldn't post that item for sale at a mere 20% markup, would you?

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    Replies
    1. You would;

      - The chance you are undercut by a buy low / sell high person is lower
      - The risk an industrial produces stuff and brings it in is lower
      - The chance speculators buy you out too when re-listing a region, is higher
      - The chance you sell your product faster when people check avg values / deviation across New Eden, you don't stand out.
      - When projecting the profits on the product, and sales are not met for any reason, including any of the above, you have a lower loss when leaving the market (dumping, refining, etc)

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