What is an item worth?

[Kazamoto]

I was going to say this post is Zigkid3 and Bizzybeast/MentalPoison bait, but Zigkid3 beat me here.

Anyone who thinks that there is no problem with the current level of undercutting and degree to which things gets devalued must also feel that Walmart is good for a local economy.

When someone doesn't care that they are selling at a loss and undercuts an item for a third the cost of its base materials (you see this with lumber frequently), it drives out other producers.

Often the price of lumber will drop to the cost of a single log. And when it does, I sell logs rather than lumber, following the money with the goods I have.

But in what business model does selling something that costs 300+300+300+50 for 300g -tax make sense?

Granted, people who gather the base mats, like myself don't lose money as those who bought the mats would have.

The frequent adjustment angle means someone who just wants to liquidate some unneeded materials has now set the new price point, unless someone who makes it their business to sell only that item is constantly camping the markets to buy out undercutters. And if that is your idea of gameplay, you should really be playing EvE.


"An item is worth what somebody is willing to pay for it."
I wish this phrase were the truth in FFXIV, but the truth is:

"An item is worth as little as someone would take to liquidate it for, at this exact moment"


TLDR?
(Sensible) people are upset because items are constantly being sold way under cost, not for less than they are entitled to.

[Zigkid3]

I was going to say this post is Zigkid3 and Bizzybeast/MentalPoison bait, but Zigkid3 beat me here.

I am a snake in the grass! (you also forgot Wazabi)

Anyone who thinks that there is no problem with the current level of undercutting and degree to which things gets devalued must also feel that Walmart is good for a local economy.

The item(s) are that are being undercut are being devalue from being overvalued.
And yes Walmart is. A lot of people may dislike Walmart from an ethical stand point maybe, but I don't see how someone could argue that whole selling a variety of products under one roof at a cheap cost for cheap prices for buyers is bad for the economy.

When someone doesn't care that they are selling at a loss and undercuts an item for a third the cost of its base materials (you see this with lumber frequently), it drives out other producers.

Yes, that is the point. If a certain market/industry is profitable, in a free market people will enter that market for a slice of the market share. People will continue to enter that market until profits reach 0. At the point where profits are 0, this is where suppliers are matching demand. If profits for a certain market are below 0, then people will exit the market because there are too many unneeded suppliers.

But in what business model does selling something that costs 300+300+300+50 for 300g -tax make sense?

Depends, do you know exactly how that other person got it? they might've gotten it for cheaper some how for all you know.
If they did get it for 950g total whether through crafting or buying it, normally people will sell it at 950g or more obviously.
In some cases however, if the item just isn't selling in the first place then they'll have to put it for a cheaper price because it was overvalued. Yes it is a loss to them, but at least they are minimizing their losses instead of having 950g be gone forever. So usually it's to minimizes losses on something they can't otherwise sell for whatever reason. In other cases someone might have a monopoly on a certain product thus far but a new person attempts to enter the market. The monopoly owner sees this and will price things at a loss to themselves on purpose in order to drive out their competition, this is called predatory pricing, then after the potential competitor has left they'll go back to continue selling at their normal price again which while might be a loss in the short run it'll be better for the long run. Luckily though in a game like FF14 its hard to monopolize on anything, though it might happen from time to time.

"An item is worth what somebody is willing to pay for it."
I wish this phrase were the truth in FFXIV, but the truth is:
"An item is worth as little as someone would take to liquidate it for, at this exact moment"

An item is worth both of those statements. If you can't compete with the person willing to sell it for less than you then that's your fault.

[Conradus]

I was going to say this post is Zigkid3 and Bizzybeast/MentalPoison bait, but Zigkid3 beat me here.

Anyone who thinks that there is no problem with the current level of undercutting and degree to which things gets devalued must also feel that Walmart is good for a local economy.

Yes, it often is.

When someone doesn't care that they are selling at a loss and undercuts an item for a third the cost of its base materials (you see this with lumber frequently), it drives out other producers.

Which lowers the supply, resulting the prices rising again. Problem solved.

Often the price of lumber will drop to the cost of a single log. And when it does, I sell logs rather than lumber, following the money with the goods I have..

But in what business model does selling something that costs 300+300+300+50 for 300g -tax make sense?

The business model where an open slot in your inventory is worth more than 650 gil + tax

Granted, people who gather the base mats, like myself don't lose money as those who bought the mats would have.

The frequent adjustment angle means someone who just wants to liquidate some unneeded materials has now set the new price point, unless someone who makes it their business to sell only that item is constantly camping the markets to buy out undercutters. And if that is your idea of gameplay, you should really be playing EvE.

I do play EvE on occasion. Fantastic economy. FFXIV's economy could stand to be more like it.

"An item is worth what somebody is willing to pay for it."
I wish this phrase were the truth in FFXIV, but the truth is:

It is a phrase that is true everywhere. It is essentially a tautology.

"An item is worth as little as someone would take to liquidate it for, at this exact moment"

Yes, if people are selling something for very little, that's what people will be willing to pay for it. QED.

TLDR?
(Sensible) people are upset because items are constantly being sold way under cost, not for less than they are entitled to.

Sensible people know they aren't entitled to anything, and don't try to compete in items that are regularly being sold for under cost when they are looking to make a profit.

[Hwasung]

I was going to say this post is Zigkid3 and Bizzybeast/MentalPoison bait

Not bait, a response to the multiple threads started daily crying about lowering prices.

Anyone who thinks that there is no problem with the current level of undercutting and degree to which things gets devalued must also feel that Walmart is good for a local economy.

Not so. I think walmart has a detrimental effect on employment but has no corollary in this game. In this game both employment and resources are effectively limitless, only bounded by the time spent gathering them.

When someone doesn't care that they are selling at a loss.

In this case they are selling at a loss only if they procured their logs through other people's labor. A key staple point of mine is that price isn't predicated on the relative prices of its components in a market as rapidly shifting as this one is currently.