Today I have a special treat for you, an article written by none other than an auction house master: Markco of Diablo 3 Gold Secrets. This guy has made an impressive sum strictly from playing the Auction House (he showed me his Paypal account), and the tips and tricks I've learned from his guide have really improved my botting efficiency. Check it out;
Buy low sell high is a myth. It's an overhyped, misconstrued, and overall misleading concept that has been pounded into our brains simply because it sounds good.
"If I buy an item low, then sell it high, I'll make a profit!"
Obviously, knowing when to buy low and when to later sell high are two key pieces of information which evade the masses. This is why few people can take the buy low, sell high advice and turn it into a real profit. But the part that makes this saying false goes even deeper than the timing issue.
Like I said, there's more to this than meets the eye. Even if you can find items to buy low and sell high, you're still following an incorrect economic theory. You see, this whole fictitious buy low, sell high motto is based on how the buyer sees the world. In order to create a truly successful business model, you need to unselfishly consider what the buyer sees.
A buyer sees a high priced item as overpriced, whereas a seller sees it as a huge profit margin. These two world views collide, resulting in pain for both parties. However, if you change the motto to:
"Buy low, Sell Normal."
...then the veil has been lifted and a ray of sunshine bursts forth from the darkness like water escaping a cracked dam. Analogies aside, buying low and selling normal makes a hell of a lot more sense to both buyers and sellers.
The seller in this instance is not trying to be a "Greedy Scammer" who takes advantage of the buyer. Instead, he or she is providing a service of picking up cheap items and relisting them at normal price (perhaps lower in some cases). When every other seller is trying to raise prices, an intelligent auctioneer is trying to lower them.
This is why large retailers like Walmart are so successful. Buy low, sell normal.
Find out more about making money on the RMAH from Markco at Diablo 3 Gold Secrets.