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7-22-2010 @ 7:50AM
Saw one comment arguing against undercutting. I bit my tongue and moved on.Saw another comment arguing against undercutting. I felt the urge to comment, but passed.Several more comments arguing against undercutting... and here's a response to all of you:Almost every single one of you posted that the argument against undercutting is "I've seen the price drop dramatically in just a day! Sometimes a couple days!" You people don't understand how a free market works, apparently. People dropping large amounts onto the market at once will, obviously, lower the price of items.None of you seem to realize that if you're planning on using the AH to gain a profit... it's not about a 24 hours period. It's not about a 7 day period. The market will, ALWAYS, stabilize. Just because you've used horrible timing in placing your auctions doesn't mean that the people watching said market over a prolonged period are "doing it wrong" by undercutting you. We know when to do so, and we know when not to do so.But, please, by all means. Continue to match our prices when we do post and we'll gladly accept take the gold you could have made.
7-22-2010 @ 7:59AM
Yup- undercutting is the mechanism that supply uses to reduce price. People always say that having more supply has a negative pressure on price, but many people don't understand that this really means that people will undercut more to try and sell more.
7-22-2010 @ 9:50AM
Sorry but I would argue that the type of undercutting described in these articles is rigorous and constant undercutting based on estimated prices collected from tools without gaining a sense of the true value of the item.Using price elasticity to always sell your auctions and make you feel like your making money doesn't mean you are making as much money as you could by posting things for the right price at the right time.If I relied on auctioneers pricing (which i scan the ah with every day) to establish my pricing I would be taking a loss because most items I regularly trade I sell for 60-70% of auctioneers market price estimate.
7-22-2010 @ 10:55AM
If people are undercutting who cares? They're either undercutting at a reasonable rate (more power too them!) or undercutting too deeply which means free profit for me by buying their stacks and relisting them when demand is back up. There are soooo many different markets that if one is shut down by low demand, its easy to shift your investment into a market thats more profitable.If your auctions don't sell, its not someone else's fault. Its your own. Evaluate better. We all make bad investments. The key to making gold/ money is to diversify into multiple markets and make more good decisions than bad ones. Stop peeing into the wind and start selling your urine to people who need it to pass drug screenings.
7-22-2010 @ 11:20AM
"Stop peeing into the wind and start selling your urine to people who need it to pass drug screenings." rofl that should have been one of the goblin /sillies that is epic sir I salute you.
7-22-2010 @ 11:54AM
Free markets work well in the real world where goods & components have a tangible value. But in a computer game this does not apply. I'm sure you have all seen items in the AH sell for less than the sum of its components, but that is just the nature of how the materials are obtained within a virtual game world.As I mentioned before I do not under cut and sell 99% of my goods. The few that do not sell are usually due to lack of demand rather than the price.
7-22-2010 @ 1:00PM
@ghost dancerDude, nothing in the real world has intrinsic value, either. It's worth what someone will pay for it. No more, no less. It's worth noting that not everything is paid for in cash; political favors are another popular currency.Yes, you'll see stuff up for auction that won't pay for its own materials. Guess what? The creator already extracted value from it; he got his skillup attempt.
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