That is the question, Whether tis nobler in the mind to take the slings and arows dropped by mobs and salvage them or, by vendoring get more gold from them!
The answer is relatively simple.
A blue of a specific level has a 100% chance to produce an Essence, and a 15% chance of producing a Fallen Tooth.
So for normal mode blue items
(100% x price of Subtle Essence + 15% x price of Fallen Tooth) x 85% (due to auction fees) = Value
Lets see a real world senario:
A blue item that vendors for 98gold while subtle essences are going for 30 gold and a fallen tooth for 150 gold.
(1 x 30 + .15x150) x 0.85 = 45g (44.625 rounded)
since 45<98 Vendor the item
For Normal mode Rares it is 100% chace for Fallen Tooth, 100% chance for Subtle Essence
(100% x price of Subtle Essence + 100% x price of Fallen Tooth) x 85% (AH fees) = Value
(1 x 30 + 1 x 150) x 0.85 = 153g
so if the vendor value of the rare is less than 153g you should salvage.
As far as I can tell so far the formulas are the same for all difficulty levels of mats. So all we need do is know the value of essences and rare mats that we will be salvaging into and we can keep this in mind as we visit the vendor/blacksmith when our bags get full.
I'll also reiterate that we need to be following trends in the market. If the price of Essences is currently down in the 15g area, but we know that at a weeekend it is likely to bounce back to 30g or more we need to be using the 30g figure, and not the 15g figure. Auction Sucess: It's all about timing!
And off course if the item is maxed out stats you could also sell it on the AH, but that should go without saying!
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