Fixing the Markets. As much our problem as SE's .

[soshifood]

This is just how an economy is. You sell at equilibrium price where demand meets supply. With products that don't have much uniqueness between them, you have to sell at the price which the market dictates.

The economy in FFXIV is a free-market economy, meaning that it is solely dependent on us. Too many sellers for one thing lowers price. It's as simple as that. But as more people make losses, sellers will eventually remove themselves from the market. Supply of these items will fall. In turn, the items' prices will rise, promising profit to the few people that are left.

As such, it would be good to diversify what you sell to cover losses. Are you only selling boar hides? Well, sell some materia too while you're at it.

There will always be items that sell for less than what they're worth. Supply and demand will correct it naturally. People will both suffer and gain. That's just how it is. FFXIV's economy simulates real life.

[zenmetsu]

What is Wrong with the Markets

Every time you list an item lower then the lowest priced full stack, it is you that is a part of the problem...

All this is well and fine but if the market price is higher then this you wouldn't be listing that low but it gives you an idea of how low the price could be undercut before the seller is losing gil.

What can SE do to help the problem? First thing would be no default price. lazy people ruin markets quicker then anything else.

First of all, it is basic economics... you should have learned this in high school. If someone dumps stuff on the market for a perceived loss, nothing is to stop you from picking it up and re-listing it. If someone is willing to let something go for free, then that is their deal.

Second... seriously, learn then vs. than. It is really hard to take someone seriously when they show such a disregard for proper grammar.

[soshifood]

imo economy is working as intended. You can make a lot of money if you make the right business decisions, but you can also lose a lot of you do otherwise.

I get that not everyone in the whole world can do business. I study economics and I still feel stupid when I'm trying to sell stuff in FFXIV lol.

I'm pretty sure this is why a lot of people are complaining about FFXIV's economy, because they can't get money through simpler means like farming monsters (the equivalent to working an office job under a salary). Square Enix could raise the amount of money that FATEs and leves give, but this is arguably dangerous as it could cause a rapid inflation.

For those people, your best option would be to learn what materials are worth collecting (off monsters or through gathering). Sell them on the market board, and this shouldn't be too different from earning money from killing monsters.

[Maddox]

Snip for Length

You know I have to admit, when 2.0 came a swinging her doors open to us, the last thing i expected was not being able to choose the quantity you want to buy off the AH.

In a sense while the game has moved forward drastically, the inability to select how much of an item you wish to buy off the AH, has actually digressed the market.

Seems while most things took a step forward the market took a step back.

[Ruminate]

Well... It clearly failed to do so, then. It cannot be called a "controlled flow of resources" when resources are not flowing at all due to overpricing/big stack selling. I still laugh from seeing Diremite Webs, Dew Threads, Undyed Velveteens and, worst of all, food items getting slowly cramped on the market due to these logistics. Even funnier: people seem to think that the items will flow if they sell them on even bigger stacks at even bigger prices. Videogame logic.

Did you wiki the word "logistics" and type the first sentence that came up?

Example of how logistics affects economics:
Buying a 6-pack five times costs more than buying a 32-pack.

The reason why 5x 6-packs costs more than a 32 pack is due to 2 reasons:
1.) inventory space
2.) most people only want what they need

You sell more for less to make room for more inventory.
You sell less for more because people don't need the surplus.

[Haibel]

Because the change simulates something that occurs in real world economics: logistics

I don't think that word means what you think it means. At the very least you have an over thought view of it. At least in the two posts
you have made so far you seem to think that SE wants us to sell even at a loss in some sort of inventory management game. This is further
from the truth. There wouldn't be a Tax on the markets if this was the case. it's in the best interest of the economy to not crash so more gil
gets siphoned out through taxes. Your notion leads to the point that Vendoring is the better option and that injects more gil into the economy.
this intern deflates currency and inflates prices. IE 500k titan runs that SE has no control over.

Did you wiki the word "logistics" and type the first sentence that came up?

Example of how logistics affects economics:
Buying a 6-pack five times costs more than buying a 32-pack.

The reason why 5x 6-packs costs more than a 32 pack is due to 2 reasons:
1.) inventory space
2.) most people only want what they need

You sell more for less to make room for more inventory.
You sell less for more because people don't need the surplus.

Thanks for providing that, your talking about Pricing strategies. Logistics plays a part in that
but isn't the sole driver. Your really just talking about marketing.

[Reiterpallasch]

Most Businesses Fail in their first year

But not because they're choosing to sell their wares for half of what it cost them to make them. That's a different issue entirely (I.E. 'Murica), so I don't even know why you'd bring it up. It's not even related to the topic at hand.

Undercutting is obviously going to happen, but people take it to the extreme. You only need to undercut by 1 gil to get your item to sell faster than the next guy, not 1k, not 5k, not 10k, etc. If something sells steady for 10k, and costs 9k to make, you don't come in and put 20 up for 2k, but that's what people do. You'd think the items would sell fast and the prices would go back up, but sometimes they don't. Sometimes, everyone else undercuts the already unprofitable undercut price, and it just stays there.

Some people might say "well I farmed the mats, so it was free to make!" in which case they could have just sold the materials for double/triple the profits, and likely for faster.

[Malamasala]

It's more like unwanted things are cheap and desired things are too expensive.

[Ruminate]

I don't think that word means what you think it means. At the very least you have an over thought view of it. At least in the two posts
you have made so far you seem to think that SE wants us to sell even at a loss in some sort of inventory management game. This is further
from the truth. There wouldn't be a Tax on the markets if this was the case. it's in the best interest of the economy to not crash so more gil
gets siphoned out through taxes. Your notion leads to the point that Vendoring is the better option and that injects more gil into the economy.
this intern deflates currency and inflates prices. IE 500k titan runs that SE has no control over.

Person A buys a car for $20k
Person A sells the car later on for $1k

Based on your logic, you believe Person A is "lazy".

What you fail to understand is that Person A didn't buy the car to sell it. Person A bought the car to drive it and sold it after they were done with it. Otherwise its just taking up space.

Lets take that above example and apply it in game:

Crafter A creates something with a 100 gil value.
Crafter A sells it for 50 gil.

What you fail to understand is that Crafter A didn't create the item with the intention of selling it. Crafter A created the item to gain XP and sold it after they were done with it. Otherwise its just taking up space.

[soshifood]

snip

It's a little too complicated for me to explain, but I will say that this is meant to happen. Some people are just willing to sell at that price to make quick money. If it makes everyone else lower their prices continuously to fight for buyers, then this is probably a sign that there are too many sellers. Just be patient and eventually you can still sell your items once prices rise again. I know I sell for cheap sometimes so I can quickly buy some materia to meld. It's not unreasonable.

Also, lowering prices by 1 gil doesn't really work. Depending on where your retainers are selling at, there is still tax for transportation. A Gridanian retainer selling something for 5000 gil could still be cheaper than a Limsa Lominsian retainer selling at 4800 gil if the buyer was in Gridania.

Auction house is meant to be a competition. Be smart on what, when, and where to sell and you can beat the others.