I like to think of a barter system like an open bazaar, a casual flea market where anything goes and negotiation skills are key to wealth.  If that doesn’t suit your style, don’t fret.  The point of this article is to familiarize you with the process of getting started in any barter system game.

One of the great things about first starting is that you don’t really have to spend a great deal of time earning something you can trade off… even if it is, in the end, pure junk.  There are many items in, for example, World of Warcraft that are utterly useless from a practical standpoint or even aesthetic, but people pay extraordinarly simply for the claim to own it.

Make the objective of your first trade for a new character to at least something tangible for your item, meaning not just the typical monetary unit.  As I wrote in the Barter System Intro, in Diablo II the tradeable units were not gold but items (the “SOJ” and rare runes).  You shouldn’t try for gold here, but another item.

Here’s how.  For any item you think is of any value to another entity:

• Don’t ask for anything specific in return:
  Not at first.  Often, if you instead ask what they have to trade for it their offer will surprise you.  This keeps open the possibility of a favorable gain for you!  If instead you ask for something specific, even if you know it’s a little or a lot more valuable than what you’re offering, you effectively close the possibilities significantly.

  You see, now there would be only a few different outcomes.  Either they have what you were looking for or not.  If not, then what you’ve done is establish a baseline for trade… the baseline being the item you asked for.  It’s not a terrible thing, but it really closes the door to something that they have and you want, but that they’re now unlikely to offer, simply because of that baseline.  If they had something more valuable (and they know it) than what you had asked for, they’ll now hold onto it because they know what you’re willing to take.

  Don’t sell yourself short.  Instead, keep things open and you’ll often come away with much more than you originally thought possible.

• Always ask for more if you have an advantage in item rarity, but do so nicely:
  More often than not, you’ll get the little bit extra that will propel you ahead even faster.  Here’s how I would do it.   First, like it says above, stay open to the possibilities.  Advertise what you have and keep it open what you’d like in exchange.  Now, the great thing about barter systems is that if you have an advantage, people will (and you will to) throw together “bundles” in order to get that one item that’s worth just a little more.   Here’s where you milk them, but like in poker, don’t scare ‘em away.  First, ask what they have.  Then, say politely, “is that all?”  When they respond yes (most likely), if they have several things that you’d like, pick several that you can trade off soon after or put together as part of a bundle of your own for a better item.   Remember one thing as you’re picking through their list.  Your one item is worth more than the sum of their individual items, so always ask for just a little extra.  In this case, if you are willing to take 4 items from them, ask instead for five – take one extra item you think they might be willing to part with.
• When someone offers you a “bundle” or package deal for your rare item, don’t fall for it:
  Unless you really don’t want the rare item you are trading for and all the other stuff is useful to you.  This works in reverse too.  If you have a “bundle” of items, often the person with the rare item you really want will offer it to you even though your sum of items isn’t equal to the worth of their one.  Either way, if you’re trading the rare item for a “bundle” be sure of a couple things.  That you can get rid of the items you’re trading for easily if you had to in a bundle of your own, or that you really can use/want them.  I’ve had chances to grab a ton of barely worthwhile items for my one rare item, but you know what?  It would end up completely wasting my time trying to sell the little items off, even if in the end it may be worth more.  Our time is actually our most precious commodity in barter systems and you don’t want to waste yours selling less valuable items when you could be trading for things far better using the item you just gave away.  Just take items that you know for sure you can sell quickly or use.
• Always get that one rare item you want by putting together a bundle of your own:
  As mentioned above, this works on those that aren’t aware of the rule above, and it works often.  It’s rare that you have that perfect 1 on 1 trade item that someone wants in exchange.  That means you put together packages for the ones you want.  Sometimes it works because people are lazy, and others becuase they’re naive.  Either way, my favorite example is the one in Everquest a long time ago.. in its first year in fact.  I was level 41, barely able to wear the Shiny Metallic Robe (SMR), dropped by an extremely greedy mage where the avg. camp time for the robe was in the high teens in hours, or maybe even more.  I wasn’t willing to do this, but I had been good at trading my way up in sellable items, even if I couldn’t use them myself.

  So I was grouping with someone out in a far away ocean with barely another soul in the same zone except us, having a blast, when someone for whatever reason advertised that they were selling the robe.  Having several much less valuable but high profile items nonetheless in my inventory, I put together the package of my trading career.  All individually, the things I put together added up to about what the robe was worth, but it was me who was the thief… those things were worthless compared to it, even for the class they were meant for.  It was just that they were “high profile” well known items.  The person accepted, I had my robe that I didn’t have to camp for, and was the envy (yeah, laughable I know) of young wizards everywhere, as you hardly ever saw a wizard with that robe that wasn’t at least level 47 (when the max was 50… and a VERY difficult to reach 50).  This was back when they called every five levels (do they still do that?) hell levels for the time it took to get through them… ah the days.  The moral: when you want something worth more than any one thing you have, always always offer a package.

• When offering a package, be generous and tailor it to the person:
  When putting together a package, don’t be stingy.  For this reason only. You know that the item you’re getting is worth way more than all the cheap easily attainable stuff you’ve got to offer.  So for this reason, be quick and proud to offer something that will make them simply unable to refuse your offer.  They will for one be grateful, maybe a little ashamed, and definitely proud of themselves for making a “killing” when it was really you who got the way better tradeable item.  This is especially great for when you aren’t planning on using the item but instead using it in an even better package in the future.  It is absolutely amazing the stuff you can trade up for as you get better stuff yourself through package trades.
• Find out what the most valuable currency is and trade for that as much as possible:
  In EQ it was simply platinum, but later on in levels people would not trade for mere money but only in rare items.  In Diablo II it was the SOJ, and in Diablo 1 if I recall it was the stuff “of the whale” or “of kings”.  When you figure it out, do package trades for the item that’s being used for currency even if it doesn’t seem worth it.  Then when you start collecting the item in bulk, you’ll have far more negotiating power of your own, especially in package deals where you throw that one rare item plus 3 or 4 of the item that’s the current currency, such as the SOJ.  People can always use them.

There are lots more tips of course for succeeding in a barter system; it can’t be explained in one article.  But above there are several of the best techniques I’ve used to get rich in a barter system, and believe those will apply in the future to other games as well.  Happy bargaining!

• Always be open to negotiation. It is the basis of trade. People expect it from honest, real people, (and even dishonest people) and respect you when you budge a little but not a lot. But you’re not necessarily after they’re respect, you want profit. Negotiation has the benefit of making things happen – it’s like the enzyme in any deal. A stubborn seller gets two choices: either a yes, or a no. Either 100% of what they’re asking, or nothing. A negotiator gets 100%, 50%, or 150% of what they really want, but rarely nothing. Their money is active and working even when they make less of it.How many times have you wanted something and asked what the going price was, and the seller wouldn’t budge? C’est la vie for you right? But if the seller would be willing to go down even a little, it would make you more willing to go up even a little. A deal is eventually made and you’re both happy, well… happier than if he still had it and you still didn’t. That little bit more is easy to rationalize after all.

  The great thing about negotiations is that whatever it is that you’re negotiating usually starts with both sides already nearer an extreme position than to a bargaining position. This usually means that, whether retail or the AH, prices are usually set at the ideal price people thing that buyers or other opposite side is willing to accept. Retailers try and lock in the price with a huge profit. So do sellers at the auction house. Yet, most people will accept lower, even just a little, if they can sell it and make a profit right now.

• Keep your emotions in check – at least until you have money in hand, and don’t let the other you’re bargaining with notice it. High emotions can escalate any reservations that a buyer might have, leading to preventing a deal from taking place even if one was in motion – the others can sense that you are excited just by your speech and that you just want to make the deal. They will often then bow out at the last minute due to a gut feeling.This is especially important when closing the deal. When negotiating a fair price, use phrases like “would you be open to negotiation?” or if you’re selling something, “the average price is usually xyz, but if you can do n, then it’s yours”. No emotion, just business, and friendly as well. People are open to this kind of bargaining on the whole. Those that aren’t are usually brash people you don’t want to be dealing with anyway. Even if you can’t go lower, at least be friendly about it: “sorry, but 300 was as low as I wanted to go”. What you are really doing is giving them every chance to change their mind. If you’re curt, smug, stubborn, you’re essentially willing all but the desperate to go away and not bother you with every sentence. Often, by being polite and keeping your emotions pleasant and business like, you will profit in the end.

  Be sure that before you have money in hand, you are not over-excited, and maintain a business-like nature. This will focus both parties into completing the deal. Then, feel free to open up and even make them feel good about it by using the truth: “I’ve heard from others that it’s a nice item” or if nothing else, “thanks, and good luck!”.

• Know what you want – even if you don’t. Have a number if you’re offering to buy something, and if you’re not sure what it should be, make it up. This implies confidence even if you’re not. If they in turn laugh, you can too but it’s not too late to say “ok, I’m willing to go 350″ and be serious. If the buyer offers you too low a number, do not just say “that’s too low” because that begins to escalate the emotion. Say something like “the item averages much higher but I’d be willing to take xyz” or “if you can offer 100g more, then it is yours”. The point is, do not just hope that they will magically offer you an ideal amount. Have some sort of idea of your own magic number. If you’re unsure, consult like items in the auction house, or on a website such as Allakhazam before you’re selling. Another popular method is to just simply ask others: “what is the usual going price for xyz?” Many will be more than willing to quote you a number.
• Do not let the losses get you down. Of course it can be frustrating (even very much so) but realize that everyone at some point loses money, simply because it takes some amount of risk to make money. If you’re not risking anything, you’re not making as much as you could be. It will happen on occasion and is part of the natural cycle of making money. When you know you’re heading for a loss, it is important to focus. Make your goal to minimize it and move on as quickly as possible. Focus on selling that item, reclaiming as much of the money spent as possible, and using it to buy something else with a better profit margin.Often when I’m trying to get rid of something quickly, I will simultaneously put it in the auction house as high as I think it will sell, but also be pro-active and advertise it on the trade channel, putting special focus on the item so I can get it out of my inventory and move on. If I manage to make a deal in trade or chat, I’ll cancel the auction house and personally deliver it. Don’t ever tell them they can buy it in the auction house when you can deliver it in person and make sure the deal is done.

Never be afraid to open up negotiations with someone. Always /w them if they advertise, or if they have something up that you know you might be able to put up for more, and ask for the same item, even if it’s at a deal already, for less. I’ve probably saved thousands this way. With farmers, you need to be firm. They will negotiate but you need to have a low-reasonable offer in mind. How do you know you’re dealing with a farmer? One, they don’t speak english well, or very abrupt with little tact, straight yes/no answers, and something like this:

farmer: you want [item]? yes?
you: yes, I do
farmer: [item]?
you: yes, I would like that item
farmer: 100g, yes?
you: I will give you 60g
farmer: no reply for a minute
farmer: [item]? yes?
you: yes, 60g
farmer: no, 100g
you: I will go 75g, and that’s it
farmer: 90g, yes?
you: 75g and that’s all
farmer: 85g yes?
you: [now be firm] 75g and I’ll meet you at the ah
farmer: 75g ok
you: ok

Don’t be excited whenever you get a good deal. Two, you started up communication because you saw them advertise their wares in the trade channel. This is by no means foolproof, as there are way more non-farmers advertising than farmers. Three, they’re pushy. Four, they will negotiate. Many non-farmers want the best price possible, even at the sacrifice of a deal. There’s an epic I’m currently bargaining for through mail. It’s being sold for 1500 but I’m asking 1100. He replied that the lowest he’d go is 1300. So I replied that I’ll go 1200. It’s actually an item I want for my priest so I’m kind of cheap that way. I will not go another 100g because the item’s already slightly overpriced, and he may not go down to 1200g even though it will guarantee him a sale. People are stubborn. Non-farmers are stubborn. Farmers negotiate.