Monday 4 August 2014

Buyouts and Large Profit Margins

Sometimes the market for an item is low enough you can buy it all out, post a few for a large markup and make unusually large profit margins.

It's all about supply and demand, if there's steady demand for something with both supply and price low, it might be a good time for a buyout.

This tends to work best on relatively cheap stuff, someone might pay 25 or even 50 million for an item that usually goes for 1 million (especially if he's just gotta have it RIGHT NOW) but it's highly unlikely anyone will pay 1 bil for something that usually goes 100 mil.

For example:

MHVO-Is usually go for around 1 million ISK each. I bought out 100 or so of them for a bit less than that. Then I posted 10 for 25 mil each. I didn't get undercut for about a day and 5 of them sold before I did get undercut.

I already made back the 100 million I paid for all of them plus 25 million  in profit and I still have 95 of them left (5 more of which are up for around 10 million each now).

Not bad profit for buying a stack of things I keep in stock for my own use anyhow at a price slightly lower than usual. It's not the first time I've done that on MHVO-Is either. Last time I reposted them for 50 mil each and only sold 2 before getting undercut.

1 comment:

  1. For the people listening in, when doing such buyouts, realize you can make this rolling too. With the profit from region A, you can buyout region B and work with an average prize on all bought goods and work with a selling price that fits your profit target. When the rolling through regions A, B, C, etc is killed by the market, dump all on buy orders in hubs to free up your money. You made your profit already remember?