Undercutting

[Jojoya]

Sure. But you also don't see prices slashed by 90% either. Remember, this is a video game, not real-life. Some concepts from the real world do apply, but not all.

For example, in the real world, the average consumer sees jars of peanut butter for $4.99, $4.89 and $4.79 and goes with the $4.79 one... especially if the $4.79 is the same volume of product. However, when the shelves are filled with peanut butter, it isn't like one brand drops the price by 75% either. Nor do people commonly buy up the 75% off peanut butter and then relist it back for $4.99. We don't own stores. And if we resell through eBay, Amazon, etc - they take a substantial cut.

Imagine Lowes selling 2x4s for $8 each and seeing their competitor selling them for $6 each and buying them out. In FFXIV, that transfer of lumber from their retainer to your retainer is instantaneous and costs a negligible amount (retainer/MB tax). But Lowes would have to physically move all that lumber from one warehouse to the other, possibly lose some due to damage and wind up at a loss.

It isn't apples to apples and pretending it is is just plain silly.

Yet supply and demand still have an impact on the marketboard prices.

Why does the Suzusaurus that was selling for 12 million gil 3 weeks ago now go for just over a million? Because supply increased while the number of players who are willing to pay 12 million gil for it has not. Sellers kept undercutting each other trying to stay at the top of the list while buyers continued to pass on the opportunity. The price seems to be stable for the near future but it will soon be taking another dip as the players willing to buy at 1-1.5 million get theirs and move on.

Real world manufacturers will also slash their prices on some items by 75-90% just as the retailers do. They too have to worry about transport of items and storage, not to mention flaws created in the manufacturing process. There was a dessert factory near where I used to live that supplied upscale restaurants and also sold under a retail brand. Twelve slice moussecakes would typically run $20-25 retail and $15 to the restaurants (while the restaurants would sell those slices at $5-$7 each) . But the factory seconds would sell for $4-5 in their outlet shop attached to the factory. More badly damaged ones could be priced at $1. It was a great price for a quality dessert that had the whipped cream decoration slightly off center or a small section of crust chipped off.

You're right that it's not directly apples to apples but there are definitely points where real life versus game are comparable.

So when this is a game and players aren't concerned with the overhead and logistics in the real life manufacturing to retail process, when there is no variation in quality beyond it's either HQ or NQ, why are so many obsessed with making massive profits on items that are neither rare nor difficult to produce then throwing hissy fits when someone decides to undercut them by a large amount so the prices are more reasonable for the buyer?

I'm going to undercut as I feel appropriate. One gil isn't appropriate, it's a coward's game. If you think the current lowest seller's price is fair, then price match. Take your chances that the next buyer is going to pick your item and not the other seller's. If it truly is a fair price for an item in demand, both items will end up selling and you get to keep that one gil.