Undercutting

[Jojoya]

Yes and no.

Many sales in this game are not decided by price, but simply by a player wanting that item. They don't care if the item costs 500k or 100k. They will buy it. Then it all comes down to who has the lowest price at that time. So, you can either sell it for 100,000... or 499,999. But it will sell all the same.

But yes and no applies to that as well. Some players do care about the price. Not everyone is rich.

That's why things like Universalis are becoming popular. It's also why so many players were demanding that SE make crafting and gathering easier. They felt like they couldn't afford to get many of the things they wanted because the few who were bothering to craft had a stranglehold on the market and thus prices.

By pricing high, you're chancing that there will be some player on your home world willing to buy at the higher price. The higher the price goes, the smaller the chance of scoring a sale. The smaller the pool of potential buyers, the smaller the chance that one will bite.

So it's not necessarily foolish at all. It's about understanding the item you're trying to sell. How many others are likely to be selling it, who is likely to buy it, what wealth do they have access to, and if buyers are likely to data center travel to get a better price. More and more buyers are using things like Universalis to get an idea of where they can find the best price. If you've priced the item of out of range for some of the interested buyers or far above what it's selling for elsewhere, you have slowed down how quickly your item is likely to sell.

Not everyone plays to get as rich as possible and so they won't care that they "robbed themselves" of 100k if they already have the things they currently want.