Undercutting

[Jojoya]

Sure. But you also don't see prices slashed by 90% either. Remember, this is a video game, not real-life. Some concepts from the real world do apply, but not all.

For example, in the real world, the average consumer sees jars of peanut butter for $4.99, $4.89 and $4.79 and goes with the $4.79 one... especially if the $4.79 is the same volume of product. However, when the shelves are filled with peanut butter, it isn't like one brand drops the price by 75% either. Nor do people commonly buy up the 75% off peanut butter and then relist it back for $4.99. We don't own stores. And if we resell through eBay, Amazon, etc - they take a substantial cut.

Imagine Lowes selling 2x4s for $8 each and seeing their competitor selling them for $6 each and buying them out. In FFXIV, that transfer of lumber from their retainer to your retainer is instantaneous and costs a negligible amount (retainer/MB tax). But Lowes would have to physically move all that lumber from one warehouse to the other, possibly lose some due to damage and wind up at a loss.

It isn't apples to apples and pretending it is is just plain silly.

Yet supply and demand still have an impact on the marketboard prices.

Why does the Suzusaurus that was selling for 12 million gil 3 weeks ago now go for just over a million? Because supply increased while the number of players who are willing to pay 12 million gil for it has not. Sellers kept undercutting each other trying to stay at the top of the list while buyers continued to pass on the opportunity. The price seems to be stable for the near future but it will soon be taking another dip as the players willing to buy at 1-1.5 million get theirs and move on.

Real world manufacturers will also slash their prices on some items by 75-90% just as the retailers do. They too have to worry about transport of items and storage, not to mention flaws created in the manufacturing process. There was a dessert factory near where I used to live that supplied upscale restaurants and also sold under a retail brand. Twelve slice moussecakes would typically run $20-25 retail and $15 to the restaurants (while the restaurants would sell those slices at $5-$7 each) . But the factory seconds would sell for $4-5 in their outlet shop attached to the factory. More badly damaged ones could be priced at $1. It was a great price for a quality dessert that had the whipped cream decoration slightly off center or a small section of crust chipped off.

You're right that it's not directly apples to apples but there are definitely points where real life versus game are comparable.

So when this is a game and players aren't concerned with the overhead and logistics in the real life manufacturing to retail process, when there is no variation in quality beyond it's either HQ or NQ, why are so many obsessed with making massive profits on items that are neither rare nor difficult to produce then throwing hissy fits when someone decides to undercut them by a large amount so the prices are more reasonable for the buyer?

I'm going to undercut as I feel appropriate. One gil isn't appropriate, it's a coward's game. If you think the current lowest seller's price is fair, then price match. Take your chances that the next buyer is going to pick your item and not the other seller's. If it truly is a fair price for an item in demand, both items will end up selling and you get to keep that one gil.

[dspguy]

Yet supply and demand still have an impact on the marketboard prices.

Why does the Suzusaurus that was selling for 12 million gil 3 weeks ago now go for just over a million? Because supply increased while the number of players who are willing to pay 12 million gil for it has not. Sellers kept undercutting each other trying to stay at the top of the list while buyers continued to pass on the opportunity. The price seems to be stable for the near future but it will soon be taking another dip as the players willing to buy at 1-1.5 million get theirs and move on.

You talk about how sometimes retailers have to slash prices. Of course that happens, and we see that in FFXIV. But it is usually something along the lines of old items becoming obsolete, like the classical gear when rinascita came out. Or if some item becomes available by some other means for less effort. However, you don't see retailers cutting prices if the "sale history" is healthy - lots of sales per day at a certain price. They don't cut it by 50% just out of spite. You will see retailers undercut others - of course they can't do it 1 penny at a time - the effort to relist and advertise those prices just isn't worth it.

As for the items where cutting prices makes sense - there are going to be items that fit that bill - mounts and minions and stuff that sells a few times per week for 7-to-8 digit gil where the lower price does matter. For those items, the decision to buy is made when they punch in the item name and see the price.

The other 99% of the stuff on the marketboard - the decision is made when they walk up to the marketboard. Not when they see the price. It doesn't matter what the price is. If you play the 1 gil game on the rest of the economy, that is the way to win.

[Jojoya]

that is the way to win.

You're assuming every seller looks at the marketboard as a game to win.

Not all do. For some, they're just trying to make a bit of gil off things they don't want/need.

That's where it gets weird in a game. Not everyone is participating for the same reasons.

[dspguy]

You're assuming every seller looks at the marketboard as a game to win.

Not all do. For some, they're just trying to make a bit of gil off things they don't want/need.

That's where it gets weird in a game. Not everyone is participating for the same reasons.

True. Also not like the real world. Capitalism is king and people aren't doing work for free (willingly). Sadly the market gets destroyed by just a handful of players undercutting by 50% because they don't "play the marketboard game" competitively.

[Jojoya]

True. Also not like the real world. Capitalism is king and people aren't doing work for free (willingly). Sadly the market gets destroyed by just a handful of players undercutting by 50% because they don't "play the marketboard game" competitively.

But those who are can always buy up their items since most of the time they won't relist. And it can make the game a bit more challenging for those who are out to win since they need to figure out how to combat the influence of those who aren't while staying ahead of their competition..

[Liam_Harper]

Sadly the market gets destroyed by just a handful of players undercutting by 50% because they don't "play the marketboard game" competitively.

As I've said before, if a handful of players can destroy an entire market, that market is fragile. And that's the issue. Far too much supply and anyone can easily flood it. It relies on every seller having a silent agreement to leave the prices high and only undercut each other by tiny margins so the few who get a buyer will make lots of gil. Which is unrealistic, especially in a free market.

I've made tons of gil and been undercut endlessly. Who cares. If my market got destroyed, my market sucked. Find a new one (admittedly difficult now with bots and braindead crafting, but undercuts aren't the issue there). I never understood the concept of "marketboard PvP", it's all in peoples heads. If there's demand your stuff will sell. As long as you make some profit it's all good, you aren't entitled to a high price just because it sold for that price all week. Getting hung up over that and being stubborn on getting that one high price is a good way to stay poor. Just shrug and take your profit, wait, or move market if it's not profitable.