Crafting Economics 101

I wrote this up after talking to many crafters and players and realizing a lot of players didn't know what process a crafter goes through to fill an order.  In many cases, players don't know if they're getting a good deal or not on an order.   I wrote this guide to try and help players understand both the crafting process from a crafter's perspective and arm them with information so they can be an educated buyer.  Note that terms and locations in this guide are Hibernia specific but that the economics should apply to all three realms.

Cost to Level a Crafter
Crafters craft to make items to sell and increase their skill. There are ten levels of materials used to make items. Each level corresponds to 100 crafting skill points. Each level becomes progressively more difficult in both time and money. To compare, you can level to 200 for about two gold in a little over an hour. To level out at the 1100 range it takes sometimes 30+ minutes for a skill point and may cost 300+ gold per point depending on losses and retries.

Guild Funding
It’s expensive and time consuming to level as a crafter. For skill point 1-650 in the mundane crafts a crafter can do consignments. This a slow way to gain skill, but it does pay the way as you level. However, doing consignments takes upwards of 20 times as long to gain a single skill point versus power leveling. A guild can help bring a crafter up in skill much more quickly by funding crafters with donations. As a crafter I can tell you we’re always worried about money. I’ve know high 40s characters with less than a gold to their name because they’ve spent it all on crafting. Funding from a guild can help crafters reach a high skill level more quickly so they are able to craft those coveted higher quality and level items.

Time to Craft
The amount of time it takes to make an order involves several factors:
 
Location of Materials
Materials for crafting are located in several places. Levels 1-5 are easy and are in TNN. These materials will make items for characters up to level 25. You can sit and craft all day long because everything you need is right there. After level five you have to go to different locations spread across Hibernia for your materials. Various level 6&7 components can be found in Innis Carthaig, Mag Mel, Ardee and Basar. Level’s 8-10 are found only in two locations in classic Hibernia; Dun Cruachon (when you own it) and the relic keeps.  For the Shrouded Isles expansion this situation has improved greatly with material tiers 1-8, forge/lathe and a vault in Domnann Grove.  Aalid Feie is just about Crafter's Heaven with all 10 tiers of materials, forge/lathe and vault.

Location of Forge/Lathe
Crafters have to go to the locations above to get materials for the items you ordered. These materials may or may not be near a forge and/or lathe. After the crafter gets the materials they may have to go to another location to craft. For example, relic keeps have no forges. In addition, crafters are limited by the amount of materials they can carry. Orders with quality retries may take several trips.

Coordinating With Other Crafters
For scale armor orders, a tailor and an armorcrafter have to work together. The tailor makes the leather underpinnings and the armorcrafter scales the leather pieces. Armorcrafters can raise their skill in tailoring only to 75% of their level in armorcrafting and many don’t ever get close to that high because it’s expensive enough leveling one skill line up. In most cases an armorcrafter alone can’t fill scale orders. This can take time and coordination between armorcrafter and tailor. This is especially true when the tailor has to go to a location like the Relic Keep to get materials for high-end orders.

Craft Time Including Retries
With materials and forge at hand now the crafter makes the order. This can take a bit of time depending on the level of the item with respect to the crafter’s level. If you’ve ordered an item at the top of their crafting range it may take several retries on the pieces.  In addition, some people request items of a certain quality or higher.  The time to do remakes is significant and may even have the crafter heading back out to get materials a second or third time in some cases.

Materials Costs
An item has a certain materials cost to it. There are some great spreadsheets on how much it costs to make player crafted items.  Of particular note is Keltor’s comprehensive spreadsheet: http://www.kwyk.net/keltor/tradeskill.html. It’s a complex spreadsheet so if you want something a bit more straightforward try out Sstair’s interactive Armor website.  Two other sites I use frequently include The Harms and Sstair's Armor Pricing   I’ve heard so many stories where people state a crafter ripped someone off with an item. Do your research, know the materials cost of an item or armor set prior to ordering it.

Materials Losses
There are two ways a crafter may have material losses when making an item for you. For any given item the materials needed don’t match up exactly to the material lots a crafter has to purchase. For example, an item needing 14 strips, 34 leather squares and 15 thread would need 20 strips, 40 leather and 20 thread in purchased material lots. After making the item(s) the crafter may not need the excess materials. This is especially true if the level of materials isn’t something the crafter is currently leveling in. No one has room in their vault to store stacks of all types and levels of materials so this means the crafter must sell back the overage at a loss. Selling raw materials to a vendor will return 50% of the purchase price.  It is possible to trinket some of these items to get back more of the money from them but that takes additional time.

The second way a crafter can lose money is with critical losses. This happens only if the item you’re requesting is still difficult for the crafter to make. Losses can be in the form of raw materials or crafted components in a multi-stage item like weapons or scale armor. Losses can be significant and can eat all the profit a crafter may have made on a particular order.

Bottom line, when you look at the cost including profit margin in preparation to place an order, keep in mind that the profit listed there is an ideal profit and that in many cases the crafter may make much less in profit or even possibly lose money in the case of a critical loss.

Pricing
What is a reasonable price for an item? Different crafters offer different prices. Some crafters base it on a percentage of what the merchants would or do sell the item for. Some do a percentage markup over materials cost. What if you want a certain quality and want to reroll the item for a guaranteed quality? Some crafters offer lower prices for guild members and higher prices for the general public. Most crafters offer a price that is very reasonable given the time and investment they have put into their crafting and the time it will take for them to fill your order. If you want to know a breakdown on the price, ask the crafter. Most will tell you what they charge and why. Again, refer to the spreadsheets and do your homework in advance.

Funding Through Item Salvaging
A crafter who has made a significant investment in their skill can make money on items drops. They can salvage armor and weapons to some of their base material components. In many cases a crafter can turn an item into a significantly larger amount of cash than the amount a merchant will pay for the item. To do this the crafter must first have the skill, and second take the time to go through a multi-step salvaging process.

Here is a popular salvaging example. Finlaith Firebrand’s are common drops off Finlaiths. A merchant will pay six gold for a Firebrand. However, a crafter with metalworking at 700 can salvage the weapon into diamond metal bars. The diamond metal bars alone sell back to the merchants for 66 gold. But hold on a minute, remember the remnants story from above? When you sell base materials back to the merchants you get only 50% of the true value of the item. If we could turn those metal bars into a product the vendor would pay more for the goods. It’s like baking a cake. You can sell a cake for more than the ingredients alone but you have to take the time to make the cake. In the crafting world this is called trinketing. A Finlaith Firebrand salvages for 68 diamond metal bars. A crafter can trinket that into hinges or brackets and sell the finished products back to the merchant for a total of 151 gold which is sight better than six gold! Trinketing takes time to do and requires a significant skill investment but it is a way for a crafter to use their skill to help fund further crafting.

Funding Through Darkness Falls Seals
Darkness Falls seals are great for outfitting players with good items. But what do you do with those seals when you don’t have any more items you want? Share them with other members of your guild first and if you still have any left over take them to your nearest crafter. Darkness Falls items have salvaging values just like other items. This means that a crafter can purchase an item with the seals, salvage the item, trinket the item and ultimately turn it into money to use for crafting. If you want to donate to help a crafter or your guild, seals are a great way to do so.

Seal and Item Purchasing
While guild donations are great, many crafters are willing to purchase seals and items at either a fixed price or a portion of their value. If you have items or seals you want to sell ask a crafter if they’re interested in purchasing them.

Guild-Funded Crafters - Expectations
Everyone in the guild who has donated their hard earned gold and seals should be appreciated and thanked. Guild funding is to help crafters achieve a higher crafting level and any guild member who helps their guild crafters with donations helping out the whole guild. To level quickly a crafter makes the same item over and over and resells to the merchants at a loss. You basically eat money to level. Keep in mind that guild funding is not so guild members can get items for free or at a substantial discount below materials cost from guild-funded crafters. A crafter would go out of business in no time flat with that system.

Placing a Crafting Order - Expectations
So, you want to place an order with a crafter. What do you do and expect?
 
  1. First, check the base price for what you want to order. If you don’t know what level or type of item you need you can ask a crafter. They’re good at helping out since they’ve done this a lot.
  2. Find a crafter that can make the item for you.
  3. Ask the price for the order.  This is where a lot of people think they’re being ripped off. Think about how much time it’s going to take this person to make the order for you. Everyone plays the game and we all want to get XP, realm points, to hunt for gold, etc. They’re taking time to make you an item. They have to get the materials, possibly coordinate with another crafter for base items, make the items and meet up with you to deliver the goods. They may possibly sustain critical losses and have to resell material remnants at a 50% loss. In general, it will take five minutes to an hour to fill an order. When you think about the price think about how much XP, realm points or gold you could have made in that same time. You may be surprised at how little profit many of the crafters make given the time investment.  If the crafter is still leveling you can bet that profit will also go right back into crafting as well.
  4. Do what you can to help the crafter. If you’re asking for a low level item ask the crafter if you can pick up the materials for them. Low level items take time to make but even at a 50% markup make virtually no money for the crafter. If you’re willing to meet them with the materials they can make the item for you quickly. Most crafters are very appreciative of this kind of offer.
  5. If the crafter can’t get to the order immediately remember that they pay to play the game too. Most crafters entered into the crafting profession because they like to help people. But dropping what you’re doing is no fun if you’re getting great XP or racking up on realm points.
  6. And lastly, when your order is complete, tip the crafter if you’d like. Most crafters are very appreciative of tips. You pick, tipping is always optional.
Summary
I never thought I'd like crafting but now that I've started I'm hopelessly addicted.  Good luck to you with your crafting.  If you have questions you can email me at pharaoh@guardiansofvalor.com


Last revision: 2/18/2003

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