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Thread: Undercutting

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  1. #1
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    RichardButte's Avatar
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    Richard Butte
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    Quote Originally Posted by CYoung187 View Post
    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
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  2. #2
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    CYoung187's Avatar
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    Colman Meridius
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    Quote Originally Posted by RichardButte View Post
    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.
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  3. #3
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    RichardButte's Avatar
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    Quote Originally Posted by CYoung187 View Post
    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).
    (1)
    Last edited by RichardButte; 10-07-2014 at 11:09 AM.