Sell or Use; Business valuation on weapons and items

[Fairberk]

I've been noticing a huge discrepancy in the valuation of weapons, rings, and amulets in the Auction house. Case in point:

I recently found an amulet with the following stats:

+111 Dex
Attack speed: 8%
Crit Damage: 87%
Crit Chance: 8.5%
Lightning resist 40

I tried selling this at a buyout of 590 million; cheap by comparison to other amulets with similar stats in the 1 billion range. This item didn't sell.... Why this item is worth much more to my character? Lets take a look from a business stand point.

This item equipped on my monk, gives my monk 17k more damage! This equates to 30-40k gph more per hour on the same profile (excludes item drops), on the same MP (MP1). I did a before and after run with my character. Assuming the following:

-Running my bot 20hrs a day for 360 days a year


This item will generate an extra 216 million a year in gold alone. That is a 36.6% (2.7x earnings) return on my investment assuming I bought it at 590 million; an excellent return on any investment. This excludes the fact that monsters will be dying faster, and therefore items drops will be occurring more frequently albeit with less odds in mp1. The catch 22 is my account can get banned tomorrow and I just wasted my money, but at this present return, risks are well within their means.

food for thought...

 

[vwest877]

You'll get banned long before an acc is a year old. Plus in a year that amulet may not be anywhere near as good as another you could buy for cheaper. Sell it.

 

[smurg]

Looking into the future a month is debatable, much less a year.

The game can change in an instant. Don't plan too far ahead.

 

[Bottletorch]

Just sell it for whatever you can get, cash out and actually get some food...

...for thought.

 

[harleystcool]

so you want food for your thoughts?

 

[Mookruiz]

so then at what point do you stop investing in your bot?

bare in mind if you get banned, any items on bot are wasted money $$$

get in, get out, get rich!

 

[shaliuno]

To OP:
Sell this on GAH/RMAH
or use on Main if you still play for fun

Any gear investment on bots is only worthwhile at start, and its 30 mil max.
If you find better gear during botting and its no more that 5mil on GAH, keep it on bots why not.

One year is quite a long term.
You can get banned on first day of botting. Or stay ok for 3-4-5 months.

 

[Bertrand]

Expensive items are harder to sell. you need to w8 at least a weak before bringing the price down. Keep it up at no less than 500mil... Einstein...

 

[imakii]

Expensive items are harder to sell. you need to w8 at least a weak before bringing the price down. Keep it up at no less than 500mil... Einstein...

I second this guy, at a selling point with prices cloud 9's HIGH its a wishful thinking to get something out of it,
until someone sells under, the market trends might follow suit..

Just like what shaliuno said .. If u play for fun keep it

 

[Bulzap]

Just make sure that your item is the best offer currently available if you are a lightning monk that got 700m to spend on a trifactor amulet. Aslong as this is true it will sell sooner or later. If someone undercuts like crazy and puts a similar for 100m then ofcourse don't follow, but if several similar items goes down to 450m without being instant BOed then you will have to get down to that aswell if you want to sell.

Also Net present value - Wikipedia, the free encyclopedia makes your math useless - too many unknown factors.