How do you react to being undercut?

[Sanct]

Generally speaking I will just undercut back all the way to the point where I'm doing nothing more than breaking even.

In markets that I feel are mine I will undercut to the point that we are both losing money and will continue to do so til you concede defeat and bow out of even trying anymore.

This has worked for me so far although I pretty sure half the crafters on the server hate me. I've had a couple of tells asking me to stop selling things so low.

You can /tell retainers now?

[Rrylia]

You can /tell retainers now?

I don't think it's that - but for many items the name of the crafter is listed at the bottom of the item, so it's pretty obvious who owns the retainer(s). Also worth noting if you are trying to manipulate the markets (tut tut) because you will appear as the main buyer and as the crafter of all those overpriced items. You can however recycle the items (trade) to get rid of that.

[Kieren-Dohla]

But I undercut fairly often. It's because I find I'm often getting undercut by a mass of 1 gil less sellers. So I drop the price by 5, 10 or 50 gil depending on if I can still make a profit. If the market for the stuff in question gets saturated and the profit I can make is too low, I just pull it from the market for a while.

Also, I quit bothering trying to sell items that sell for less than 10 gil all the time. Even if the items are things that I got for free (drops, etc). Items like that don't move because everyone is trying to get rid of them. So I just discard them.

Working the market is an art. Sometimes you have to move to new areas of it for a while. When I undercut I'm just trying to get something to me quickly and also test the demand. If the demand is high it will sell fast and I'll know I can price it higher.

Just my thoughts...

[Gabbelgak]

You can /tell retainers now?

My retainer is named Gabbelgak, my charater is named Gabbelle Gak. I don't exactly hide.