Saturday, April 17, 2010

The true price of inks.

Inscription is one of, if not the, best gold making professions in the game right now. It is kind of the perfect storm in terms of profitability. It sells a disposable item as its commodity. It tailors to everyone in the game. And it has almost no deposit price for the AH so that working in bulk is encouraged.

The adage slow and steady wins the race is in full effect here. We are talking about hundreds of sales for a few gold each. They add up though. My server is listed as a high population realm. There is about 6 hardcore scribes and about 20 part timers. I still pull about 2k gold out of my mailbox the day after I restock glyphs. My average profit on a glyph is 5g right now.

The only true way to know your profits is to know your costs. I decided that I wanted to know exactly how many inks I could make from an average stack of herbs. I built up a spreadsheet that let me enter how many stacks of each herb I milled and how many Ink of the Sea (Iots) and Snowfall Inks (SI) I got out of each stack.

Not all herbs are created equal, the lower level northrend herbs have a different ink yield than the higher level northrend herbs.

1 stack of lower level herbs = 5 IotS and ½ SI (1688.25 stacks milled, 8339 IotS, 855 SI)
1 stack of higher level herbs = 6 IotS and 1 SI (1652 stacks milled, 9804 IotS, 1628 SI)

I had to split the spreadsheet up into these two categories. From there I documented how many inks of each type I could get from a stack and divided the price of the stack by this number. This gave me the actual cost of each ink.

The problem is that milling herbs gives you two types of inks. With each ink on a different variable of cost it would take some advanced math to get a solid price point. I decided to simplify. I figured that I had two scenarios:

Scenario 1. 10 IotS can be turned into 1 SI, therefore 1 SI counts as 10 IotS as far as ink pricing is concerned. The cost of the stack of herbs is divided by both ink types. [ Stack price /((SIx10)+IotS)]

Scenario 2.I consider SI as a bonus product and only count IotS as far as ink pricing is concerned. The cost of the stack of herbs is divided by only IotS and SI has an effective price of 0 [Stack price / IotS]

If I could sell all of my SI either as inks or as a finished product then I would use the pricing scheme in scenario 1. If not then I would use scenario 2

The problem comes when you are milling in bulk that most of the items made by SI do not sell in bulk. The only thing that you can make in bulk and have them sell reliably is Darkmoon Cards of the North. I turn all my SI into cards using the pricing structure in scenario 1.

If you can't sell the SI or its products for the price laid out in scenario 1 you must price your IotS off of scenario 2 and consider any SI sales as a bonus.

Here is a list of Ink prices depending on the price of a stack of herbs. Add 50 silver for parchment prices to get your glyph price.

Low Level Herbs

Price per stack // Scenario 1 IotS Price (x10 for SI Price) // Scenario 2 IotS Price
all prices in gold
1 // 0.1 // 0.2
2 // 0.2 // 0.4
3 // 0.3 // 0.61
4 // 0.4 // 0.81
5 // 0.5 // 1.01
6 // 0.6 // 1.21
7 // 0.7 // 1.42
8 // 0.8 // 1.62
9 // 0.9 // 1.82
10 // 1 // 2.02
11 // 1.1 // 2.23
12 // 1.2 / 2.43
13 // 1.3 // 2.63
14 // 1.4 // 2.83
15 // 1.5 // 3.04
16 // 1.6 // 3.24
17 // 1.7 // 3.44
18 // 1.8 // 3.64
19 // 1.9 // 3.85
20 // 2 // 4.05
21 // 2.1 // 4.25

High Level Herbs

Price per stack // Scenario 1 IotS Price (x10 for SI Price) // Scenario 2 IotS Price
all prices in gold
1.6 // 0.1 // 0.27
3.2 // 0.2 // 0.54
4.7 // 0.3 // 0.79
6.3 // 0.4 // 1.06
7.9 // 0.5 // 1.33
9.4 // 0.6 // 1.58
11 // 0.7 // 1.85
12.6 // 0.8 // 2.12
14.2 // 0.9 // 2.39
15.8 // 1 // 2.66
17.4 // 1.1 // 2.93
19 // 1.2 // 3.2
20.5 // 1.3 // 3.45
22.1 // 1.4 // 3.72
23.7 // 1.5 // 3.99
25.2 // 1.6 // 4.25
26.8 // 1.7 // 4.52
28.4 // 1.8 // 4.79
30 // 1.9 // 5.06
31.6 // 2 // 5.32
33.1 // 2.1 // 5.58

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