Undercutting

[CYoung187]

What I find the most amusing is the amount of complaining that was going on around here with regards to housing prices. So many people don't have Gil but that's probably because so many undercutters don't seem to mind killing the price of anything worth selling as long as theirs sells first. "Well, I may be getting 80% less than what it was initially worth, but at least my stuff sold." Congratulations you're homeless.

This makes zero sense at all. Because someone undercuts they have less money? The amount of gil in circulation doesnt change, it just gets spent on different things. I undercut all the time and I have plenty of gil. That is like saying walmart doesn't make any money because they are selling everything for 80% of what they could sell it for. I'd rather sell 2 at 80% then 1 at 100%. I don't care if my margins are less if I am selling much faster.

[RichardButte]

This makes zero sense at all. Because someone undercuts they have less money? The amount of gil in circulation doesnt change, it just gets spent on different things. I undercut all the time and I have plenty of gil. That is like saying walmart doesn't make any money because they are selling everything for 80% of what they could sell it for. I'd rather sell 2 at 80% then 1 at 100%. I don't care if my margins are less if I am selling much faster.

Congratulations: you're an exception and not a rule.

He's right: all of the people complaining about how broke they are are very likely the same people who don't have the patience to wait for things to sell for what they're ACTUALLY worth.

And sure, the gil supply remains constant, it's just that none of those people HAVE it. :P

[CYoung187]

Congratulations: you're an exception and not a rule.

He's right: all of the people complaining about how broke they are are very likely the same people who don't have the patience to wait for things to sell for what they're ACTUALLY worth.

And sure, the gil supply remains constant, it's just that none of those people HAVE it. :P

Broke and those complaining about housing prices are much different things. If someone is broke it's because they are probably not even trying. People can be fools on the market board for many reasons. Some because they overprice everything, some because they underprice. They simply cannot read the market value of an item correctly. Saying undercutting is making people broke is a complete over-exaggeration. How many people really complain they are broke, I don't think I have ever heard that complaint? Gil rains from trees.

[RichardButte]

Gil rains from trees.

Then no one should've been complaining about the cost of housing and yet they are.

Realistically, no one can be sure of the reason, but I'm sure undercutting by 80% isn't helping.

Let me put this another way: selling it 80% cheaper doesn't magically mean there's 80% more demand, and it certainly doesn't mean that you'll guarantee more of the market share because someone else is more likely to buy them all and resell them for the normal price.

Again, lowering prices does not magically increase demand in a closed system, which means people undercutting by this much are just screwing themselves out of profit as well as everyone else by driving prices down (though mostly themselves).

[DefendPopPunk]

That is like saying walmart doesn't make any money because they are selling everything for 80% of what they could sell it for. I'd rather sell 2 at 80% then 1 at 100%. I don't care if my margins are less if I am selling much faster.

Umm...no. First of all, I wasn't talking about someone undercutting by 20%, I was talking about a larger amount than that. Like others said in this thread, there's a better way to go about undercutting that doesn't completely destroy the prices. Yeah, no one can tell you what price you can sell your items at, sure, but we can all still look at it with eyebrows raised. Second, that analogy fails. I'm sure the CEO at Wal-Mart doesn't just go "HMMM what's the other guy selling it for? 10 dollars? Alright, let's sell ours for 2 dollars." There's way more to it than that. If he told that to their shareholders I'm pretty sure that guy wouldn't have a job anymore. And that's not even taking into account those people that undercut prices at a loss compared to if they had just vendored the things. smh

[CYoung187]

Umm...no. First of all, I wasn't talking about someone undercutting by 20%, I was talking about a larger amount than that. Like others said in this thread, there's a better way to go about undercutting that doesn't completely destroy the prices. Yeah, no one can tell you what price you can sell your items at, sure, but we can all still look at it with /snip

A person making a huge undercut that gets bought does not completely destroy the prices. One outlier does not make a trend unless the other sellers make it so. If someone prices something that low his competition should be purchasing his product immediately. Instead of getting mad at the fool take it as a opportunity.

Does anyone even care about those who sell things for less then vendor? If something is selling stuff for that cheap it is the items that nobody wants. That effects nobody. Just saying this is a very overblown "problem"

[Squa11_Leonhart]

Because someone undercuts they have less money?

If the mats are hard to get and they get less profit, obviously they get less money.