Overflowing stupidity

[Wulfies]

You are missing the point of that example:

Tomb mats do sell a lot faster than crafted items.

In the example the mats total market value was 200k, the finished item undercut to 150k.

Regardless of if the 150k finished item sells faster than the other crafter's 250k item, the undercutter is still in effect losing 50k easy profit, by not just selling the mats.

The fact he farmed all the mats himself is irrelevant, while the 150k may be "pure profit", it's still a minimum 50k loss on the gil potential and a senseless move on his part.

Your key point here is "gil potential."

There there are 2 assumptions that you are using that I would like to refute. 1) There is no guarantee that your material will sell for 200k nor can you guarantee when the materials will sell, but I do know my 150k product will sell before your 200k materials will. 2) you are setting a valuation on the sum of your materials that may not be universally held. See my quote below:

I do not know what your goals are, but when I put crap stuff on the market, I want the product to move and collect my gil as quick as i can. To me, as a person who farms everything, my CoGS (Cost of Goods Sold) are next to nil except for the time it took me to farm the mats. As a merchant, my goal is to sell first and sell it fast. I want to move more product and if i can do that cheaper than you and still make more profit than you, i can and I will. This is a basic business model.

My theory is based on quick inventory turnover. This is my business model and works well for me (this may not be something you like but no one is forcing you to use this method.)

There is an old adage: "A bird in hand is worth 2 in the bush." I will take my gil-in-hand over the potential more profits for me.

Zigkid3 succinctly states my point.

in some cases its better to sell for less if it increases your inventory turnover rate.
Say someone can gain a net profit of 20k at price point A, or or gain a net profit of 30k at price point B. Price point B is higher which will result in getting 10K more out of the sale but it'll sell less often.
Say after 24 hours, at price A you were able to gain 20k for each sale and sold 5, so 100k total. In the same amount of time of 24 hours if you sold at price B and gained 30k each you may only sell 3 and gain a total of 90k.
So in 24 hours, it was better to sell at a lower price and gain less profit per item, but you sold a lot more in the same time frame.

Also, the fact that he/she farms all the mats has everything to do with this. By farming the mats, you are reducing your CoGS thus increasing your profits.

Demand is not the only influencing factor on prices.

If an item is overpriced, it will not sell regardless of the demand.

E.g. No wind shards on the market, so someone puts them up for 100000 gil each, they will be high in demand, but nobody would pay that for them.

To use your example, if I really need a wind shard bad enough and I am unable to obtain it myself, then yes I would buy it for 100k a pop. More to my point, we both know that certain materials/product are farmed/crafted more than others.

Lets take something that isn't readily avail, for example lets use a Black Pearl Ring +1. Now this ring is required for your GSM lvl 50 quest. I was able to go 3/3 on creating +1s so I put the other 2 on the MB. Saw that there were no +1s on the market and the last +1 sold for 8k. So I put my 2 up for 20k (2.5x the market history rate.) Within 24 hours both had sold, but a few others found that out and price dropped (my "niche market" was over saturated but I sold what I wanted.) Yes, it was stupidly high compared to the "sensible price" yet it sold cause there was a demand.