I don't understand it, I just do not understand it!

[Angelhearth]

Hmm, according to the merchant courses I took, when you're competing with others in the market you need to differentiate your product from theirs. When all products are functionally the same, you do this by lowering your price to make your product more attractive than your competitor.

Wow, it really does explain what was happening. Perhaps you should have taken that course.

Do you go in with few items and set the price 25% lower than everyone else? Hmm, I wonder where you learned becoming a merchant? Sovjet Union while Stalin still ruled? China under Mao's rule?

[Curisu]

I can create it 30% cheaper then the market price.
Hmm, 5% of money gain is enough for me and I need my inventory space.
Lets just sell them 25% cheaper, it will sell out in no time and I can continue with my crafting because of the free inventory space I got now.

[Alien_Gamer]

Nice attempt but since neither would support such a capitalist method of selling product you'll have to try again.

Yes, I might enter a market at 25% below if I thought I could make enough sales to maintain whatever profit margins i wanted. If you can't compete at that level then leave the market or adapt.

[Angelhearth]

Nice attempt but since neither would support such a capitalist method of selling product you'll have to try again.

Yes, I might enter a market at 25% below if I thought I could make enough sales to maintain whatever profit margins i wanted. If you can't compete at that level then leave the market or adapt.

But I do compete, I make millions on the market. A day I don't make more than 1 million gil is a day wasted in my opinion. I'm not sure why you guys even bother crafting, if it isn't to make as much gil as possible.

[Angelhearth]

I can create it 30% cheaper then the market price.
Hmm, 5% of money gain is enough for me and I need my inventory space.
Lets just sell them 25% cheaper, it will sell out in no time and I can continue with my crafting because of the free inventory space I got now.

And how much gil do you make that way, compared to finding a niche, keep that niche "clean", and sell at highest possible price?

[Curisu]

And how much gil do you make that way, compared to finding a niche, keep that niche "clean", and sell at highest possible price?

None, I don't even know what to do with my 150mil.
That's why I sell on a low price, because I don't need money and I could make someone else happy who bought the item for a cheap price.

But normally I undercut by a few hundred gil and not thousands.
But I don't really care, what do I need money for anyway?

[Morningstar1337]

The reason people undercut tend to be either

1. because they want more inventory space
2. because they gathered the mats and can therefore make more profit even at lower prices because they don't have to worry about making back the cost on mats (an example: If Purpure Beads are going at 50k, and Asthethe's Cross-Pein Hammers are going for 300k, the the one that gathered their own shell clips can sell their hammers for 250k, and not only sell the item fast, but still make 50k more than the people that had to buy the beads.Going further, if they sell the Beads instead and the Shell Clips and Resin are going for 25k per 4 and 2 of each, then they would've made 100% more money than those that had to buy the mats)
3. or because they find the items too overpriced and want to crash it.

None of these are mutually exclusive. A gatherer would obviously benefit from more inventory space and it is still possible to make a profit while bringing the market down. Especially if people buy your wares with the intent to sell them at the inflated markup you were trying to rout.

[Darkstride]

Yeah, I see a lot of that excuse. Personally I think they just don't understand better.

Speaking for myself, I completely understand. I just don't care that much. Most of the time if I'm selling an item it's because I'm clearing out inventory space. I list it low to sell and get rid of it. There's no devious ulterior motive to undercut and ruin the market. I just want it gone but selling items is better than trashing them. That said, I don't generally undercut by large amounts, just enough that it will clear out quickly.

Not everyone cares about being a merchant.

[Liam_Harper]

have nothing left to do other than to destroy the market for those that haven't done everything yet, and still want to save up gil so their FC can buy a large plot?

First rule to remember in dealing with the market is that is it never your market. The market board does not exist to reward you fairly for your effort, nor are you entitled to earn gil from it. Markets do not work that way, they're player driven, open to everyone and subject to supply and demand. If that doesn't sound fair, it isn't, nor is it meant to be.

Once you understand and accept that, you can make reasonable gil on the mb by dabbling in multiple markets, researching on items that are in high demand and being patient even when prices spike and dip.

Also keep in mind crafting is at its all time easiest. Hundreds of thousands of players have max level crafters and competition to sell items is sky high, while demand is naturally lower because more people can make or gather their own items.

[Maeka]

It's simple supply, demand, and the want to make sure yours sells.

People charge way more than something is worth to account for "time spent". For example, if the cakes take 3,000 gil to make, and the going price is 8,000, then the people selling them at that price is figuring that their time is worth 5k.

But, if someone else who is bored or who comes by a lot of materials that can be used in making these cakes, decides that they're OK with 3k profit, then they will sell at 6,000. That might make you feel upset, but... maybe you were charging too much for it? I see some items on the market that are just insanely overpriced, like 30k for Lv20 tools and clothes and such, and that just makes me roll my eyes, especially the ones you can get all the ingredients from the guild. And I've checked, they sit and sit and sit and nobody buys them.

Seems the vast majority of people are out of touch with how much their time is actually worth if they think that 20-30k is fair for a Lv20 tool you can make from guild supplier-bought materials (which means zero work being put in). But that's just an example.

Either way, it's simple capitalism, supply&demand, and how much people are willing to pay for your time, and how much people think you should be paid. Maybe there are people out there who are aware that 5k seems a bit steep for whatever it takes to make crab cakes, and decided that they're gonna sell for cheaper?

At the end of the day, you can either buy them all up and resell (they'll just undercut you again) or maybe swallow your pride and sell at 6k. Maybe the old price really was too high.