UNDERCUTTING....

[Matsume]

If I'm losing money selling the item, then I won't sell it.

But let me come up with a fictional example. An item costs 1mil to make, and it sells for 10mil because few people make it and they've all decided that it should be priced at 10mil.

I come along and sell my item for 8mil. I'm still making a big profit, and I can ensure that I'm the only one selling the item now. Nobody is going to buy it for 10mil. Those other people are either going to have to bow out, or drop their prices to compete with me -- at which point I get to decide again if I want to drop my price and drive them out, or if it's no longer worth it for me to make and sell this item.

During this whole process, I'm not losing anything. I'm the only one making pure profit.

Then one day someone comes along and sells the item for 1mil and you never get to sell it again...TRUE STORY

[Wolfie]

Then one day someone comes along and sells the item for 1mil and you never get to sell it again...TRUE STORY

Then I move on to the next item that nets me profit. Economy 101.