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Logic of Undercutting?

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  • Logic of Undercutting?

    Is there a logic behind undercutting by 33% of the going price of silk thread?

    Undercutters that do it by that much bother me. In a day, Silks on my server have gone from 3k to 2k to 3k to 1k, singles.

    Why do people elminate potential profit?

  • #2
    Re: Logic of Undercutting?

    I don't understand undercutting on such massive amounts either. But what I do understand is that those people got me about 1m gil over the corse of 3 months by selling ebony logs at 5k each.
    Generic Info!

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    • #3
      Re: Logic of Undercutting?

      Heh.

      Lucky. People being morons never seems to benefit me.

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      • #4
        Re: Logic of Undercutting?

        I always undercut things because I have a lot of gil, but I'd still rather sell things than toss them.
        So, say, silk thread... I'd sell it for a lot less; at a price I think seems 'fair', is significantly lower [than the going price], and will result in a VERY fast sale.

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        • #5
          Re: Logic of Undercutting?

          I tend to undercut a lot on my mules especially for a lot of different reasons.

          1) I sell a ridiculous amount of products and don't care to check the AH every time for their going rate. I guess their value usually and sell around there. Maybe I'll lose a tiny bit of gil as a result of lack of effort but I just want to move through as quickly and efficiently as possible.

          2) Sometimes I want my money faster and some small loss of profit isn't gonna kill me though I usually only do this with big ticket items. On the other hand, Silk Thread may be a big ticket item to some people.

          3) It's not a huge amount gil to me. I don't feel like I've lost a lot by undercutting most of the time. Let's say for example an item is 50k going rate. For me to undercut by even 20k isn't a big deal. 20k is an insignificantly small amount of money to me.

          4) In some cases it's possible that someone who is highly efficient can mass produce and item. These people probably know where their profit margin is. Even if it is somewhat razor thin... it's razor thingx100 or something. Making small amounts of gil in large quantities is a good way to end up with a lot of gil.



          Also keep in mind that people who farm the goods are getting them essentially for free. If they want fast money or only a certain amount it's still profit to them albeit less profit. I will grant that if your main source of income is farming Silk then undercutting is probably hurting you more than helping you. But if you happen to have a stack lying around (as I sometimes do from random XP drop that stack up on a mule) then meh. Also keep in mind that there are people who desynth Crawler Cocoons to make Silk Thread. It might be more profitable for them to undercut for any of the reasons above.


          I always undercut things because I have a lot of gil, but I'd still rather sell things than toss them.
          So, say, silk thread... I'd sell it for a lot less; at a price I think seems 'fair', is significantly lower [than the going price], and will result in a VERY fast sale.
          QFT... when you have a ton of gil a stack of silks is a joke.
          A Day in the Life of a Taru

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          • #6
            Re: Logic of Undercutting?

            Right now im mass producing poison potions on the ragnarok server.

            There are times where a stack sells for 45k, thats the highest it usually gets, sometimes 50k, i've seen 60k.. depends on supply as we all know, but it doesnt go over 45k too often, in any case, this rise in price is stupid imo, i never sell them at 45k, their regular price is 40k, and if youre on the ragnarok server and you see my name on the sellers list, allways buy at 40k, because i never go over that, i usually undercut like 10 gil or sometimes 1k if theres a large ammount of potions for sale.

            I undercut on crystals alot, alot, as in 1k per stack of any crystal, i dont even bother checking going prices, sometimes those 10 seconds it takes me to check seem like an eternity and all i wanna do is move on and get rid of stuff. This doesnt happen when im selling for the purpose of profit.

            I've sold silent oils at 1 gil though, and scored the going price because it sells so fast, and the tax is pratically nonexistant.

            Sometimes when the stuff im selling goes down alot, i take it like a chump and bazaar the goods. Since i sell mostly consumables, i place myself in strategic places, like poisons near a dynamis zone, or food near a popular exp zone like valk and the outskirts of qufim.

            But i digress.

            People undercut to sell as fast as possible, and to cut down on tax, sometimes its smart, but most of the time its dumb.
            signatures are for pussies mew mew mew, here's mine

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            • #7
              Re: Logic of Undercutting?

              When I fish, there are fish I make into food which I consider my main income. I try my best not to undercut my food too much. Say, 20 in stack selling at 60k i'll price mine like 58,111

              Some left over fish that I don't use tho I just undercut to get rid of them ^-^;
              There are painters who transform the sun into a yellow spot,
              but there are others who with the help of their art and their intelligence
              transform a yellow spot into the sun.

              - Pablo Picasso

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              • #8
                Re: Logic of Undercutting?

                Originally posted by Jei
                When I fish, there are fish I make into food which I consider my main income. I try my best not to undercut my food too much. Say, 20 in stack selling at 60k i'll price mine like 58,111

                Some left over fish that I don't use tho I just undercut to get rid of them ^-^;
                That's a horribly small undercut. Just enough to blow though the ones at going price.

                I still don't understand. Silks sell fast at 2k, let alone 3k, why not double your profit margin (1k > 2k)??

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                • #9
                  Re: Logic of Undercutting?

                  When I'm crafting arrows I always check the AH and then set my price at least a 100k below the going rate. I sell arrows as my maine income this works well because people are always needing more ammo so if I sell a lot of it at a lower price I still come out on top.

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                  • #10
                    Re: Logic of Undercutting?

                    I usaully sell jack o lanterns when I want to make some money while I am out leveling or going to be away from town for a while. They tend to sell for aroun 7k-9k and will sell in about 1/2-1 day. The going rate was 8k the other day. Then some person started selling them for 5k-6k. Why? There were around 35 on the ah and they were all selling within the day. Unless you are a moron you would not skill up on these since beeswax is so expensive, so I know that wasn't the case. When you took the time to level a craft to at least 40, why not enjoy some money from it?
                    Thanks Kazuki.
                    Dragoon Equipment

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                    • #11
                      Re: Logic of Undercutting?

                      Originally posted by Matera
                      I still don't understand. Silks sell fast at 2k, let alone 3k, why not double your profit margin (1k > 2k)??
                      I think of it in terms of gil/time. For me personally the gil/time ratio just isn't worth it. If you want to sell a ton of an item it's not worth it to wait even a little bit of time. Beyond that if you're someone who can make a millioin gil an a matter of hours what's the point in making 1k more on some tiny item?

                      Personally I sell almost anything that's less than 10k for 101 gil on the AH. It lowers the fee and keeps people from spending 1 or 10 gil to get it. Most other people (the people who buy for 10k more than the listing price without even trying to buy at an undercut price) are in too much of a hurry and will buy it near the normal price.

                      If it did sell for 101 gil I wouldn't care. All I care about is that I moved product. Keeping all of the tiny drops and stacking them up on mules is what makes me a lot of pocket change (200-300k/day) and I can make serious gil in many other ways.

                      To people who have gil it's just not worth it to sell higher in terms of time and effort looking up the going rate.
                      A Day in the Life of a Taru

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                      • #12
                        Re: Logic of Undercutting?

                        Originally posted by Matera
                        Is there a logic behind undercutting by 33% of the going price of silk thread?

                        Undercutters that do it by that much bother me. In a day, Silks on my server have gone from 3k to 2k to 3k to 1k, singles.

                        Why do people elminate potential profit?
                        Me either.

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                        • #13
                          Re: Logic of Undercutting?

                          one reason for undercut, is the product priced for lowest, ive heard, is sold first.
                          example

                          bee spatha:

                          bee spatha1 - 2k
                          bee spatha 2 - 1.9k

                          #2 would sell first

                          thats what ive heard and noticed in my ah when i sell ore for different prices

                          maybe its not true, if not, then.. idk why people undercut

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                          • #14
                            Re: Logic of Undercutting?

                            If people don't care about the gil then why don't they just npc it? If you want to move product fast, I can't think of a faster way than an instant sell to npc.
                            Thanks Kazuki.
                            Dragoon Equipment

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                            • #15
                              Re: Logic of Undercutting?

                              I can understand the logic behind undercutting in certain situations. What's really been bothering me is that so few have the patience and restraint to try and raise prices back up (and I do emphasize back up) given the right circumstances.

                              I make a lot of my cooking an item that's often used for skill ups. Typically, there's 10 to 20 stacks of the item up for sale, and the price stays steady. Unfortunately, when some power crafts on that item, there will often be 30+ stacks of it. Consequently, the price gets undercut from, say, 15k a stack to 10k a stack.

                              But then, once the supply starts running low, and there's less than 10 stacks up for sale, it's nigh unto impossible to try and get the market price back up to what it was before. Recently, there were as few as 4 stacks up for sale, and I couldn't get the price to go up by even 1k a stack at that point.
                              Lyonheart
                              lvl 75 WAR, 75 BST, 75 BLM, 75 NIN, 47 SCH
                              Cooking 100.0+3+3, Culinarian's Signboard, Raw Fish Handling, Noodle Kneading, Patissier
                              Fishing 60

                              Lakiskline
                              Bonecrafting 100.0+3+3,
                              Leather 60+2, Woodworking 60, Alchemy 60
                              Smithing 60, Clothcraft 55, Goldsmithing 54.1, Cooking 11
                              Boneworker's Signboard, Bone Purification, Bone Ensorcellment, Filing, Lumberjack, Chainwork

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