Please Undercut Wisely

[Dorin]

If you are buying the materials to make your items, then you are crazy. I gather all my stuff, and barely buy anything from vendors; all profit.

Hmph.

You know what they say about time, and how time means money, right?

You can make a lot more of money by buying the materials you need instead of gathering them yourself. By doing that, you are actually losing money.

[Dragon_Lord]

In answer to Dorin's remarks.

Time is money if you have a deadline to deliver the goods. No such thing in this game. You make your own time. You have to level gathering anyways, but if you don't like gathering I can sell you a stack of materials, but you will pay the Piper's fee. LoL

[Lyrinn]

In answer to Dorin's remarks.

Time is money if you have a deadline to deliver the goods. No such thing in this game. You make your own time. You have to level gathering anyways, but if you don't like gathering I can sell you a stack of materials, but you will pay the Piper's fee. LoL

There's this thing called opportunity cost. In the time it takes you to farm all the random mats and shards (especially shards) to make "pure profit," I'll likely have sold more in the same time for a total profit greater than what you earned. Of course, this varies depending on what items you're selling but if you can get better gil/time, why not? I'm not advocating one way over the other as I care only about the raw numbers, but you're naive if you think you're not missing out on anything -- unless you don't even care about earning mass amounts of gil, in which case, why are we even having this discussion?

[OldGeezer]

There's this thing called opportunity cost. In the time it takes you to farm all the random mats and shards (especially shards) to make "pure profit," I'll likely have sold more in the same time for a total profit greater than what you earned. Of course, this varies depending on what items you're selling but if you can get better gil/time, why not? I'm not advocating one way over the other as I care only about the raw numbers, but you're naive if you think you're not missing out on anything -- unless you don't even care about earning mass amounts of gil, in which case, why are we even having this discussion?

Maybe for fancy high-end stuff at launch that was true, but that's not the case for mid- and low-end stuff now. Aside from culinary, all items have 2-3 components that you can gather/farm 99 items in an hour or so. You're not selling that much to outpace the profit of doing it yourself. At game launch opportunity cost was a viable process, but that's not the market we have now. Your approach becomes a ponzai scheme when the market stabilizes. That's not the case when you do it yourself.

[Nicco]

you think it sucks be undercut by 300? i remember multiple times being unndercut by 10k on a 22k item >.< or 2-4k on others... people are dumb, that is all..

[Mitski]

Maybe for fancy high-end stuff at launch that was true, but that's not the case for mid- and low-end stuff now. Aside from culinary, all items have 2-3 components that you can gather/farm 99 items in an hour or so. You're not selling that much to outpace the profit of doing it yourself. At game launch opportunity cost was a viable process, but that's not the market we have now. Your approach becomes a ponzai scheme when the market stabilizes. That's not the case when you do it yourself.

No. You may think that what you're posting sounds intelligent, but anyone educated on the topic can see that you don't even know the meaning of the words you're using. Please stop posting.

[Lstkaws]

There's this thing called opportunity cost. In the time it takes you to farm all the random mats and shards (especially shards) to make "pure profit," I'll likely have sold more in the same time for a total profit greater than what you earned...

Depends on the current cost of shards. Shards go directly to overhead. You need to figure this in as cost and use the derivative to ensure it is the most efficient way of doing business. These days shard costs are generally low enough that buying shards is by far the best use of ones time. I usually make sure they are under 20g a piece as that is the cutoff for me to make my profit margin in a down market.
If shard costs were high it would make sense to vertically integrate that portion of the process.

[OldGeezer]

Hmph.

You know what they say about time, and how time means money, right?

You can make a lot more of money by buying the materials you need instead of gathering them yourself. By doing that, you are actually losing money.

Maybe when the game launched that was true, back when things flew off the shelves and you made profit on volume. But that's not the case anymore. Now things don't sell instantly, it takes a few hours typically. I can use those hours to gather the mats and still make it in time to sell it to a potential customer. As I stated with Tupsi I can sell my crafted items for 1/2 the price of someone who buys their mats on the AH, and make twice the profit that they would make. Whose items will sell first-mine, because they're 1/2 price. Who's made more profit, I did. So making it yourself does win out in the long run.