How Crafting Drives the Economy
Crafting connects gathering, dungeons, and the auction house in a 4-stage feedback loop: material drops → crafter buys → gear sold → players invest → demand grows → more material drops. Each stage taxes the gold supply, preventing inflation.
The four stages
(1) Mob/dungeon drops materials. (2) Crafter buys materials on AH. (3) Crafter lists finished gear at materials + 30% margin. (4) Players buy gear, invest in better content, generate more material drops.
Why this stabilizes prices
If material prices spike, crafters absorb the cost and either raise gear prices (driving AH inflation) or stop crafting (tightening supply). Either way, the loop self-corrects within 2 weeks of a patch.
How patches affect the loop
New crafting recipes inject demand. New materials inject supply. Balance changes shift class popularity, changing which gear sells. Smart crafters track patch notes 1 week ahead.
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Frequently Asked Questions
How do I know what's profitable to craft?
Check AH median price - material cost. Margin >25% = craft. <15% = skip.
Do crafters get a tax discount?
Master Crafter rank reduces AH listing fee from 5% to 3%.
Can I craft for a friend without listing?
Yes — direct trade after crafting; no AH involved.