I do not mean by just a few ffxiv gil, I mean by a huge margin. For example, something selling for 35K and then some one puts it up for 9K. Granted I could buy it out and relist it but I hate to reward someone for doing that.
Just to test it out for laughs I created a replica High allagen piece. One was listed for 5M on the board. I listed mine at just a few gil below. A couple of hours later someone listed another one 500K FFXIV Gil cheaper. Just to see how far it would go, I relisted mine a few Final Fantasy XIV Gil cheaper. Hour later that other person lists again 500k FFXIV Gil cheaper. so now down to 3.5M. I relist a few Final Fantasy XIV Gil cheaper. Come back an hour later, someone else had listed slightly cheaper than the other guys but he then listed it again By the time I had enough it was down to almost 1M.
It just seems like undercutting has really gotten to the extreme. Maybe it is just me but it sure seems that way.
High value items have limited demand. There might be one or two people who will shell out an absurd amount of money for a super expensive item, but quickly the value drops to what the next person is willing to pay. The key to making money from crafting is to get your stuff sold, and the key to making lots of money from super-expensive endgame crafts that were just released is to get your stuff sold first. Or at least, before all the people who want one have one. If everything is sitting at 5m and no one is buying, and then someone undercuts to 3m and it sells, that person did not just lose 2m. They gained 3m, where the people who were sitting at 5m gained nothing. With the undercut product sold, they can go back to listing their stuff at 5m, but if it didn’t sell before, it’s still not going to sell now.
Most importantly, it’s important to understand that an item’s value to you is not the same as its value to another. People undercut for all sorts of reasons, and people do large undercuts for all sorts of reasons. If a product is selling very sparsely at 5m and someone is undercutting you by 1 Final Fantasy XIV Gil every time you undercut them by 1gil, but you have a full time job and only play a couple days a week, you aren’t going to ever be able to sell your item at that price. You need the item to come down to a price where multiple people will purchase the item in short order so after the undercutter’s product sells, yours sells before they have a chance to re-craft and re-list. Or, you have to lower the price to a point where the item isn’t attractive to full time gamers who undercut so they’ll move into another market. That’ll slow the undercuts and allow your product to sell, even if you don’t log in every day.
People with fewer sale slots and less inventory space also value throughput more than people who have purchased tons of retainers. If you could sell an item that costs you 2m to craft at 5m once a week, or sell that same item for 3m five times a week, selling it for 3m makes you more money over time than keeping it so expensive few people want to purchase it.
Dealing lucratively with the markets in a game like this involves figuring out the calculus of supply&demand throughput offsetting the craft’s cost in gil and time. Different people do that math differently from you. I’m someone who undercuts by 1m at a time if the item is selling for 5-10m and someone undercuts me by any amount for reasons explained above, until the item is around 2m. Then I only undercut by 500k. I’d much, much, much rather sell 10 items at 1m profit each than 1 item at 10m profit.
I find that high value items, at release, tend to halve in value (or maybe quarter?) each time one sells until it hits a stable point. So, there will be 1 listed at 10m that sells, then 5 more go up for 10m and none sell. Then someone lists it at 5m, or undercutting brings it down to 5m, and then another sells. And then it drops down to 2m before selling again. Unless supply is extremely limited such that only about one of the item per week appears on the MB, or the item costs a lot to make.
And then there are other factors. Back when someone figured out the gardening recipe for Blood Peppers, I grew as many as I could as fast as I could with only five gardens to work with. The minute I obtained some, I knew the supply was about to spike as other gardeners found out and shifted their gardens to growing Blood Peppers. So, even though they had been selling for like 2m, I listed mine at 500k, and when someone undercut, dropped it to 300k Final Fantasy XIV Gil super fast. Someone undercut me again, I put them down to 200k FFXIV Gil. And I sold my whole first batch, and second, before the other growers’ supply got such that their value dropped to 50k. If I had kept trying to sell at 2m, they wouldn’t have sold, and then the value would have tanked and I would have gained nothing.
If you stubbornly keep your prices high with zero sales, you’re not being a good businesswoman no matter what you think about undercutting.
It’s not GC related, it’s city related. If the retainer selling the item is located in the same city as the marketboard you are using, buying the item will not add a tax to the cost for the buyer. The buyer never sees that money. Unless I’m mistaken about how it works in 3.0, certain cities (or just Ishgard?) get discounts from time to time for the tax on the seller. which is taken directly from the sale price. Sometimes the discounts are complete, sometimes they’re half, but in all cases, the tax the seller pays happens regardless of where the buyer buys the item.
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