Making Gil On The AH

I'm trying to think of the best way to explain this. Please help me out. Let me explain a few points first:

I am from Seraph yes, this happened a little on Seraph but not to this extent. Someone may say this is typical capitalism supply & demand. I call bs. This is impatience and greed.

What is with the constant undercutting? Don't you care that you are driving the price down cobnsiderably? It seems like if something sells moderately well people will start undercutting it.

For instance, I am working on fishing and enjoy the skillups and gil I get/got from Nebimonites. Less than a month ago they were 12k a stack. Then someone sold a bunch for 11k, then 10k, then 9k, then 8k now they are 7k a stack. This only took about a week or two.

Why do you do this? Impatience? People were buying them for 12k a stack! Why would you want to lose 5k a stack?

This starts with YOU and can end with you. Do you want to see the items you enjoy farming for gil turn to ***prices so you have to find something else to sell? Don't you want to continue farming your fave items and selling them for decent prices?

Someone help me out here and explain my point better please.

Its called supply and demand.

It happens all the time.

Deal with it.

It's lordcanti mules... LOL

In short, if i have something of value and i want to go shopping, but i look and there's 8 of the item i have. Of course i'm going to undercut you and the other 7 people.

It's my money and i need it now~!

***. You consciously choose to undercut the price thus dropping it and so the next person wants to undercut you. Why? So theirs sell faster than yours. All you have to do is have patience. People are happily buying the item at 12k a stack. Why do you have to drop it 5k a stack? PEOPLE WILL BUY THE ITEM FOR 12K! Stop dropping the price!



Angeleus, you just negated any issue you had with Lordwhoever. You made yourself look like the douche you are trying to paint him as. Please don't turn this topic into a flame thread.

Yes I explained this approach as impatience and greed.

If there is a huge amount of something on the AH in a short period of time and people don't want as many the prices will drop because people will want to sell them.

Oh is it? I thought i saw something in my marketing class called supply and demand.

My bad man didn't mean to hurt you're feelings.

Who says you have to sell all your Nebs now? I used to put them on a mule til they went back up (they always do). Keep in mind too that drastic economy changes usually start with the small stuff, think of it as a blessing.

If you're crafting at all to make money, you also have to know WHEN to sell, not just how to make it. Dont be stupid and sell 7 stacks on 5 different mules at once, its almost like you are encouraging undercutting that way.

A truly patient person might view 5k stacks as an opportunity. You could make 100%+ profit when you see those stacks pop up on the AH if you were to buy them and wait until the price goes back up.

I bet you consider that approach BS too.

I guess nobody here are accountants.

Here is simple capitalism at its best:

Sales
-COGS (think of this as AH Tax)
------
Gross Profit

-Operating Expenses (thats how much it costs you to actually get the items, if its fishing or crafting)
-------
Net Income

As long as you don't spend all your gil on operating expenses, any/everything is net income.

If it costs you 0 gil to get a stack of wind crystals, and you want to sell them for 500 gil, and AH tax costs 414 gil, you still make a net income of 86 gil. Now do it 100 times, and you get a net income of 8600 gil.

See what's happening here? Thats basic Accounting.

Wow hey, I'm just discussing this. You guys aren't hurting my feelings or pissing me off.

Yes Arminius, that is a good perspective.

I used nebimonites as an example. This is happening with all product. It will sell fine and then someoen will drop 10 items on the AH for 1k less which starts the price slide.

The point of this topic was to encourage people to not drop the prices so drastically! People are happy buying the items at the previous price. Why lose out?

Because yours will sell before theirs, and they don't want that.

This thread again?

like i said last time this was brought up. probably a week ago. wait it out or stop crying please

It's a discussion about different AH strategies. This isn't something that will diminish over time unless we talk about it and change our ways of thinking. I;ve just noticed on this server that it is way more prevalent than my old server.

I'm not sure if this has to do with more people so more competition, or just different styles of players on Bismarck.

Let me ask you this; Do you bid under the current AH price on goods when you buy them?

If so, you're encouraging the very thing you're so against, ie undercutting.

If not... then, well you're wasting gil you could be saving, helping in a roundabout way to make up for the money lost from the reduction in price of Nebimonites :P

Funny.

If their is 10 stacks up, and you check that only 5 sell a day, do you still put them up? It was mentioned earlier, but who says you have to sell them now? You could easily wait it out until the price goes back to what you feel is reasonable. If you think the people who undercut are inpatient, so are you for still putting up stock on an already flooded market.

It's all a cycle for some items; once they are hardly worth fishing, the supply will dwindle and demand will go back up, causing the price to rise.
Then the undercutting begins again.

High supply + Low demand = low prices
Low supply + high demand = high price
low supply + low demand = moderate price
high supply + high demand = moderate price

This is true, if you want to accept it or not, that's your choice. But that's how it works. It has nothing to do with people maliciously trying to screw you over. Or people being greedy, or impatient. It's just how a free market works.

Yeah you all have valid points. And yeah I guess I'm being impatient. I'm sitting at 130k gil and need to make some money.

Yes I guess it truly is supply and demand but people are consciously choosing to undercut. How about lesser increments? If something is selling at 10k and there are 50 on the AH, drop it to 9,995 or something. Your's will sell faster than the people who are selling it at 10k but won't kill the price.

You see, the hope was for a discussion to make the undercutting not so server.

Do you need me to explain every word for you? If there is a high supply and a low demand people sell things cheaper...

o.o; wtf I never said that.

Ahem.

Undercutting QQ was fresh back in 04

Yeah and I never said that ...

So bend over and deal with it? I hope for positive evolution in all things which we can achieve through positive discourse.

You do realize that pushing down the price to force other sellers out of the market is also a strategy right?

You do realize that many people simply don't care if they get paid less than they could have gotten if they waited. Maybe they need space and are trying to unload items asap, and anything they get above npc price is acceptable.

You need to understand that NO ONE cares about your ability to make gil.

No, what you are hoping for is more gil for you.

"Positive Evolution" is an opinion. I personally would much rather have low prices and quite enjoy when things I have to buy have been undercut significantly.