Extrem undercutting?

[Velox]

In a fair market, a producer will look to make 25-50% of the item's value back as profit. This is including labor (which is harder to quantify given everyone has their own idea about what labor is "worth").

For example, if a prism costs 1000 gil to make (assuming the labor value for the mats is already included), a reasonable price on the market would be 1500 gil. Now I say reasonable due to the variances that occur with competition and scarcity (the supply/demand curve in economics still holds true for base values). But for the most part, anything from 1250 - 2000 would fit into this reasonable range to provide profit. Anything over 2000 gil and you start reaching what we call "price gouging." Now it's a free market where price gouging isn't enforced, however, if someone decides that your 13000 gil prism isn't worth 13000 and puts twenty of them up for sale at 2000 gil, you really don't have the right to complain since he/she still falls within the reasonable "profit" margin. Now if this person was selling them for 500 gil a pop, then that's a different story.

[Conradus]

In a fair market, a producer will look to make 25-50% of the item's value back as profit. This is including labor (which is harder to quantify given everyone has their own idea about what labor is "worth").
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In a fair market, a producer will look to make whatever he can get somebody to pay for his product. Sometimes nobody will pay enough to cover his costs, either because he is inefficient or just because nobody wants it. He is not guaranteed any kind of return at all; it's his business to set it up so that people will pay him for his product.

[LunnaRavenheart]

In a fair market, a producer will look to make whatever he can get somebody to pay for his product. Sometimes nobody will pay enough to cover his costs, either because he is inefficient or just because nobody wants it. He is not guaranteed any kind of return at all; it's his business to set it up so that people will pay him for his product.

Agreed.

Anyway if somebody have feeling that he is undercutted and the product is underpriced: just buy it from undercutter and sold it for more if you think that product is more valuable than actual price on AH. But I give you a hint. Most of products on AH is overpriced and most of them you can get for free a for very little fee if you bring mats to crafter and shout in MD.