UNDERCUTTING....

Quote:

---

Originally Posted by Roaran

There was a quite thorough discussion of undercutting located here.

---

Fixed the link for you

Under cutters will never realize they only hurt themselves.

Not really, if people don't have the time to compete and constantly change prices for a better deal theres nothing wrong with them undercutting so that when they do have time to play they can enjoy it.

who cares.. as long as i get rid of that crap on my retainer and the fastest and easyest way to do it is undercut by 50% or more.
If it ain't gone in a day .. then its too expensive.
Few gonna spend those rediculous prices some ask for an item , especialy when it's a lower level item you only use for a day or 2 untill you leveled up, and replace it with something higher.

Quote:

---

Originally Posted by Elexia

Even if it was a "free market" kind of funny how tier IV materia always hover around the 100-500k mark, I mean if it's a 'free market" why aren't people selling it for much lower than 100k? Obvious people know the worth of items, which is why undercutting is ridiculous when they do it by wide margins.

There's quite the difference between undercutting a mere 1k to try to sell more and undercutting by damn near 80% lol.

---

You clearly have no idea what the term free market means. Just because something is expensive, doesn't mean it is unaffected by free market principles (such as: luxury goods, equilibrium pricing, etc.).

Quote:

---

Originally Posted by wolfsspirit

who cares.. as long as i get rid of that crap on my retainer and the fastest and easyest way to do it is undercut by 50% or more.
If it ain't gone in a day .. then its too expensive.
Few gonna spend those rediculous prices some ask for an item , especialy when it's a lower level item you only use for a day or 2 untill you leveled up, and replace it with something higher.

---

Yeah, sucks for people actually trying to make gil. Even doing leves isn't a good source of gil anymore as they adjusted it (and barring the 100,000 leve history achievement one.) Some people actually gather and craft to...buy thing. Shocking I know. So while you don't care (which I guess is the mentality of a lot of people who play this game) others do it and it is quite annoying being undercut by a very large margin.

If you want to "just get rid of stuff" you do know there's literally hundreds of NPCs you can sell it to, right? Nothing is "too expensive" beyond the new materia which people seriously believe someone will buy for 1-4 mil for almost no upgrade in performance lol.

Quote:

---

Originally Posted by WinnipegJet

You clearly have no idea what the term free market means. Just because something is expensive, doesn't mean it is unaffected by free market principles (such as: luxury goods, equilibrium pricing, etc.).

---

Actually I do, and people obviously know the worth of some items that it's pretty much unaffected by a "free market" since prices for certain things, as exampled tier IV materia generally stay in the 100-500k range. If they're trying to compete with each other, don't you think people would drop it even lower rather than having basically a set price range for it? It's hard to compete when you're selling at the same price as your competition >.>

Since isn't a free market basically an unrestricted economy? You'd think people would be more likely to undercut certain luxury items atm (Lightning Brands and Tier IV INT/Lightning materia are basically luxury now.)

Just How Wal-mart marks their prices 19.95 instead of what most stores sell it for of 19.99 :P.

one problem of having a sell history people begged for, well they have there AH now.

back in the good ol'days you could set your price in the marketwards and were able to sell for your price since no one knew what it sold for last.

Well, on Sargatanas, people were selling all the Felt Gear for ludicrous amounts, like Mahogany Pattens, cost about 18K to make and were selling for 60k, so i made a bunch of em, and some pants and other felt stuff and sold them for a more reasonable 35-40k. So i undercut by a lot. Same with Cobalt harness. Cost 30k to make and people were selling them for 100k!!! So i undercut by 50k to 50k. but then someone went ahead and bought out all the Undyed Linens and Electrum ingots en mass a couple days later and speared the price of them to about double what they were or more. So much for that. I could farm the ingredients, but i've got other things to do right now. :p

Quote:

---

Originally Posted by Elexia

Yeah, sucks for people actually trying to make gil. Even doing leves isn't a good source of gil anymore as they adjusted it (and barring the 100,000 leve history achievement one.) Some people actually gather and craft to...buy thing. Shocking I know. So while you don't care (which I guess is the mentality of a lot of people who play this game) others do it and it is quite annoying being undercut by a very large margin.

If you want to "just get rid of stuff" you do know there's literally hundreds of NPCs you can sell it to, right? Nothing is "too expensive" beyond the new materia which people seriously believe someone will buy for 1-4 mil for almost no upgrade in performance lol.



Actually I do, and people obviously know the worth of some items that it's pretty much unaffected by a "free market" since prices for certain things, as exampled tier IV materia generally stay in the 100-500k range. If they're trying to compete with each other, don't you think people would drop it even lower rather than having basically a set price range for it? It's hard to compete when you're selling at the same price as your competition >.>

Since isn't a free market basically an unrestricted economy? You'd think people would be more likely to undercut certain luxury items atm (Lightning Brands and Tier IV INT/Lightning materia are basically luxury now.)

---

100k-500k is an "undercut" price. Think about how much these items cost when they debut (and subsequently how much they have fallen). Equilibrium pricing is a function of time, competing goods, and general inflation- Tier IV materia might stabilize around this range for the foreseeable future (equilibrium- supply and demand) until something better comes out (competing goods; price reduction- maturity and decline). The price may also wave with the cost of items on a whole (inflation/deflation). Look at how an item in XI changed in price (NOT value) from 2006 to the present. Or, for a real world example, consider the value of currency in Zimbabwe- I recently acquired a 100 trillion dollar bill for $5 on ebay (paying for the novelty)... the actual worth of which is about 2 cents. Back in 2005 a bus ride on Zimbabwe's public transport cost about 50 billion dollars.

A free market is in theory an unrestricted economy yes... the "invisible hand" guides it first and foremost. But in 99.9% of cases there will be some macro level controls that affect pricing. It's difficult to say for certain, but we probably won't see a dramatic shift in the pricing of these items until something superior comes out. Keep in mind, the principle of undercutting is based on the tradeoff of earning less revenue for a quicker sale. Such is why you see people undercut by 1 gil, 100 gil, 1000 gil, or whatever. People will not undercut an item to the point where it's undervalued because the free market will correct this.