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How do you know what price to sell an item for? I look at my retainer's inventory, and I have a huge list of branches and logs with no point of reference. Are they worth 500 gil, 5000 gil, or 50,000 gil? Who can say? Why would I sell in Gridania or Limsa Lominsa with those kind of lingering questions!
Because none of these items have any value by themselves, it's a function of your time versus your wealth. Most people aren't the sole provider of all of their materials, so they use the markets to buy them. You calculate up how much you spent for the items, you consider the scarcity of the item you're making on the market, and you consider what your supply is and how fast you want it to deplete. For me, I try to make sure that my costs are only 25% of my revenue ideally, but if enough moves and I'm active enough in the market I will go down to about 50% profit. You then adjust based on what the market information tells you, and you get out of dodge if you are surrounded by undercutters [I make a component item that sells for about 50k on my server, but it's used as a component of an item that sells for only 40k......] 