Talking about like HQ HW/SB leveling gear and rare fish in my case. Not many stacks of 99 Silver sharks on my server. XD
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What I really want to know is why people sell for way less than vendor price.
But to answer your question OP. I'll only undercut if something has been sitting for a really long time and just won't sell and even then it's never but a lot. I generally try to list at the same price as the lowest item unless I think it's not worth it.
You undercut so your item will actually sell if you dont others will keep undercutting you. Basically a undercut or be undercut world.
There is few reasons not to undercut over keeping it at its original value. If the item is new, after everyone else had their fun the price will dive significantly. Remember the Thavnarian dresses? They use to be 1 mil+ gil in HW when it first released. Now? Anyone can have 1. Literally a bargain sale.
If you under cut you make the sale more likely, and if you make the sale when the items hot you get to have the profit be much higher than a month later or so when it'a more than likely to end up being worthless or far cheaper. This practically happens to any item barring the super rare drops from Deep Dungeon and Eureka. Glamour gear? Minions? Mounts? They all eventually will become commonplace and flood the market.
If you don't want people undercutting, have more value in the market board so the supply doesn't outweigh the demand or have a Grand Exchange from RuneScape.
Sometimes you just need to get that junk OUT of your inventory. Letting it sit for weeks and weeks while someone undercuts by 1 gil every 4 minutes ain't something I got time for. So I undercut the dickens out of my postings.
I just want the cash man.
Because I prefer having my entire marketboard list of items bought in 1 day.
Basically because I want that to sell faster. Faster gil and to clean my inventory.
Because of that, I try to always undercut by 10~20%. If someone undercuts me, I return the favou. Once again? I simply buy it (since it's at least 30% cheaper) and resel it with 15% off the cheapest. I sell those fast AND get a 15% profit.
My list of things to sell is almost always longer than the amount of slots I have with which to sell things. So I undercut by 1 gil unless the lowest price is something I can flip for a profit.
For the longest time I tried to be a "fair" seller, and just match lowest, only to watch someone else undercut by 1 gil and sell while I'm dying to reduce my load. So I've learned, and I continuously undercut by 1 gil. Sometimes I get someone that gets so upset that they drop their price by 50%... great, I buy their item, and sell them both at profit instead.
And for the items that are driven so low in price that it's not worth selling... I buy the whole lot of underpriced goods, desynth them, and sell the mats (and Fieldcrafts/Battlecrafts) for way more than the source items were, which puts me back at square one in terms of having too many things to sell and not enough slots for it.
I am always making money from the market in this game, with very little effort. 1 gil undercut just keeps that process moving as smoothly as possible.