As i was recently trying to find something to merchant last week. something thats on sale occasionally, but finally caught my eye was the Hot Colors Pack.
I never gave much thought to merchanting pigments, because my personal thought on them was always along the lines of “What a waste of money, who would buy that”
Well, long story short, a lot of people do.
The hot colors pack contains 32 colors of dye, each with an equal chance of getting one ( 3.125% for each color)
With gold prices on RT hovering around 1350k last week, and hot colors packs at 10 for 2.25 gold, it came out to roughly 309k per dye. The beauty of this is that while even the worst colors can be sold at on or close to cost ( lowest i sold any for was 225k ) the highest ones (white/black/red) can all top 2 million each, by far and away counteracting the colors you need to sell below cost.
In my little experiment, i got 180 dyes. With the expectant average of 3.125% per dyes, i actually saw ranges of .56% to 5.56%, with slightly above average on the white dyes, average on the black, and below average on the reds ( a combined 10%, or 18 out of 180 on all 3 dyes ) so by no means did i have great luck that skewed my calculations.
The reason i feel i made such more profits it that the other dye merchants out there are just plain greedy. I made a little spreadsheet of all the merchants i found selling dyes, their prices per dye, and just undercut them from 5-40%, depending on the color.
Here are my results.
At the moment, i have sold 119 of my 180 dyes. My original cost for the dyes was 55,768,500. At this point, with 119 dyes sold, my total sales have come out to 68,157,500, a net profit of 12,389,000, or approx 22%. Assuming the rest of my dyes sell at my current asking price, and now i have mostly the colors left selling at or below cost ( a few slightly above cost as well ) my gross sales would be 89, 322,500, for a net profit of 33,554,000, or about a 60% profit margin. Even assuming the last colors are hard to sell, and revising that down a bit, i am still seeing a pretty easy 40-50% return on investment, in a span of about a week.
There can be a few downsides though. The first is that some merchants may be stuck with some of the bad colors and dump them, dropping prices drastically on those colors ( i have seen prices as low as 175k for one particular color ). A bigger issue is that while your standard catshop has 12 selling slots, you will have 32 different color dyes to sell. I did a combination of AH and catshop sales, but it does provide a bit of a challenge in selling, unless you want to split it among multiple accounts.
However, as a second minor catshop, i found this a solid opportunity, without much competition.