Please Undercut Wisely

[MomoOG]

At this point, we're at the inevitable conclusion to the market.

What people are charging for finished goods is raw material price + perceived value. Perceived value mostly being the time input that goes into making that item (being the time it took to level and gear the class as well as the 45-60s you spent going through your macro rotation to make it HQ.

Considering raw materials are worth almost nothing due to an overwhelming supply that could never keep up with demand... most items are pretty much selling for their perceived value. Well... everyone has a different perception of value.

It takes me about a minute to turn 3 gold ore into an Aetheryte ring... I see a lot of people selling these rings for 10k+ while I will happily sell them all day for 7k.

Am I being a low-life undercutter or just selling for what is the value I place on the 60ish seconds it took to make that ring?

If the perceived value of the BUYER is 10k (meaning people are buying the item at a reasonable rate at 10K) then it is bad business on your end to drop it down to YOUR perceived value of 7k. Undercutting by a tiny amount to get to the top of the list make sense but to drop it by 3k even though the buyers are still willing to buy at 10k is just silly unless you are Robin Hood and are trying to give money away for altruistic reasons. However, if the item is not selling at a reasonable rate at 10k then it makes sense to try and bring it down to a price where it will sell at a reasonable rate.

[Lstkaws]

If the perceived value of the BUYER is 10k (meaning people are buying the item at a reasonable rate at 10K) then it is bad business on your end to drop it down to YOUR perceived value of 7k. Undercutting by a tiny amount to get to the top of the list make sense but to drop it by 3k even though the buyers are still willing to buy at 10k is just silly unless you are Robin Hood and are trying to give money away for altruistic reasons. However, if the item is not selling at a reasonable rate at 10k then it makes sense to try and bring it down to a price where it will sell at a reasonable rate.

Actually that is exactly what steel mogul Andrew Carnegie did. He dropped steel prices and massively undercut his competition (or threatened to). Granted he was vertically integrated, but the principles the same. Moving inventory fast has a lot to be said for it; if you can keep it cycling. Works especially well with high volume items (consumables and the like).