Undercuting prices in AH

[Deleted]

I dont get it. Please is there anyone who can explain this to me?

As buyer: When i need something and go to AH i will buy the most cheap version of that item. I dont care if it cost 1750G or 1700G. Will buy the cheapest one.
I belive everyone will do that, you need that item afterall.

As seller: I go to AH and undercut the lowest price by 1 copper. Anyone who will want to buy that item will buy the one i put there. He doesnt care if it is 7G or 6G 99S 99C. This will max my profit for selling it.

So why there are people who cant undrerstan this. If you undrcut more then 1% of price not only you are damaging economy but also you dont get so much money as you could have. Just why?? And if there is something for absurd price noone will buy it and price will go down in time.

Its like if you have 2 piles of gold infront of you and there is 1000G and 950G and you have to choose one. Who would choose the one with 950G?? Its same principle.

[Ebalina]

I put what ever prices i deem for me a good.
I do not care that some one else before me is trying to sell that item with 500g more profit or even more then me.

As long as i'm happy with the price i put i do what ever i want and there is nothing you or any one else can do to stop it.

[deadman1]

I dislike large undercuts, I assume they are done by people who really need gold or just bots/farmers.

BUT the reason is pretty obvious. If you post low enough you are guaranteed to sell your item first and are assuring no one will undercut you because your price is too low.

If they are incredibly low, just buy them all and post them for a higher price.

- - - Updated - - -

I put what ever prices i deem for me a good.
I do not care that some one else before me is trying to sell that item with 500g more profit or even more then me.

As long as i'm happy with the price i put i do what ever i want and there is nothing you or any one else can do to stop it.

They are just asking why you'd choose to take a gold loss intentionally, no need to have a tough guy attitude about it.

[Deleted]

I dislike large undercuts, I assume they are done by people who really need gold or just bots/farmers.

BUT the reason is pretty obvious. If you post low enough you are guaranteed to sell your item first and are assuring no one will undercut you because your price is too low.

If they are incredibly low, just buy them all and post them for a higher price.

This is huge risk.

Last week friend of mine bought every obliterum under 2K on AH. and put it there for 2K. in 1 hour people undercut it in few steps back to 1600G.

[Deleted]

I dislike large undercuts, I assume they are done by people who really need gold or just bots/farmers.

BUT the reason is pretty obvious. If you post low enough you are guaranteed to sell your item first and are assuring no one will undercut you because your price is too low.

If they are incredibly low, just buy them all and post them for a higher price.

- - - Updated - - -



They are just asking why you'd choose to take a gold loss intentionally, no need to have a tough guy attitude about it.

Or you undercut some products by large margins to drop the general price down. Then buy everything later for yourself. There's just such a high quantity of stuff on most realms, it's a lot tougher than earlier in the days.

[fhm]

it's either bots are trying to get fast gold or just kids undercutting and having no clue what exactly they are doing and just hurting the economy reaaaaaal bad

[deadman1]

This is huge risk.

Last week friend of mine bought every obliterum under 2K on AH. and put it there for 2K. in 1 hour people undercut it in few steps back to 1600G.

I meant larger gaps than that hence the use of the word "incredibly", but that wasn't the main point of my post AT ALL so I don't know why you skipped the whole first part and tunnel visioned on a throw away sentence at the end.

[wikinews]

No seller needs to justify their prices.

If you're selling an item for 500g and another guy sells it for 300g.

At the end of the day, his will sell before yours. So he got what he was after.

[Deleted]

No seller needs to justify their prices.

If you're selling an item for 500g and another guy sells it for 300g.

At the end of the day, his will sell before yours. So he got what he was after.

No. Both of you will sell it and you just have less profit then you could have.

[wikinews]

No. Both of you will sell it and you just have less profit then you could have.

You have no idea of knowing that. Some of the things in my stock have taken me weeks to sell (they were 100,000g+ items).

After mine is listed for 300g, more people could undercut me to the point that it won't rise back up to 500g for weeks.

Why even bother asking this question? If they're selling it at such an absurd price. Simply buy their item and relist it for higher giving you an "easy profit".

[Deleted]

I undercut by a small margin if the item before me is in normal price range and liquidates quickly. (trade goods mainly or cheap epics (<15k))
I might undercut you by a bigger margin to push a sale for bigger price range items (>15k). *
I'll undercut you by whatever amount I desire if you put up something for unreasonable price.


* Sale mentality kicks in. If an item on average costs 100, but I managed to get mine cheap, lets say 70, I might sell it for 90. People see it is 10% cheaper, rare chance, they grab on it. I have a quick sale, reinvest my money and they have a cheap item.

[Ridcully]

Because it works. If you don't have all day to babysit your auctions, small undercuts are less likely to get you a sale.

[Deleted]

You have no idea of knowing that. Some of the things in my stock have taken me weeks to sell (they were 100,000g+ items).

After mine is listed for 300g, more people could undercut me to the point that it won't rise back up to 500g for weeks.

Why even bother asking this question? If they're selling it at such an absurd price. Simply buy their item and relist it for higher giving you an "easy profit".

u get me wrong. i dont talk about undercuting absurd prices. im talking about undercuting normal price by high amount.

[wikinews]

u get me wrong. i dont talk about undercuting absurd prices. im talking about undercuting normal price by high amount.

Why does it matter though? If you care so much send a whisper to the person in-game.

There are many different reasons someone will undercut for. They sold their item, end of story.

[Arcanines]

No seller needs to justify their prices.

If you're selling an item for 500g and another guy sells it for 300g.

At the end of the day, his will sell before yours. So he got what he was after.

Yes, but the ENTIRE POINT; is you're killing your own profits, you're also killing everyone elses profits, and you're making the items worth less.

During the start of the expansion, obliterum sold for 10k+ a pop. On TM, we had 1 clown post 5 at 8000gold or 2000 below marked. FYI he crashed the marked for a few hours. IF A THING is hot stuff and will sell in 30minutes, you shouldn't undercut by more than 1 copper. If you knew how an economy worked, you'd understand. It's all math.

[wikinews]

Yes, but the ENTIRE POINT; is you're killing your own profits, you're also killing everyone elses profits, and you're making the items worth less.

During the start of the expansion, obliterum sold for 10k+ a pop. On TM, we had 1 clown post 5 at 8000gold or 2000 below marked. FYI he crashed the marked for a few hours. IF A THING is hot stuff and will sell in 30minutes, you shouldn't undercut by more than 1 copper. If you knew how an economy worked, you'd understand. It's all math.

But if I'm not invested in that market and just stumbled upon that item and want it gone, why would I care if I crash the market?

It's a MMO, you have no obligation to the market as you would IRL.

[arr0gance]

I undercut because: a.) I'm an asshole, b.) I want to sell things quickly, c.) I could give two fucks about "virtual economy" and d.) if I get an angrily worded message from somebody who covets the AH like a precious commodity, it honestly makes my day.

[Zka]

LOL. We have this topic every week, it's retarded everytime.

[Captain Fizz]

If I post anything around the normal price, someone undercuts me within 30 mins by a few coppers, then someone else and someone else.
So I end up with a thing I keep putting back on the AH.

Sod it, sell it for 75% - I get enough gold for me and it sells.

[Cien]

I dont get it. Please is there anyone who can explain this to me?

As buyer: When i need something and go to AH i will buy the most cheap version of that item. I dont care if it cost 1750G or 1700G. Will buy the cheapest one.
I belive everyone will do that, you need that item afterall.

As seller: I go to AH and undercut the lowest price by 1 copper. Anyone who will want to buy that item will buy the one i put there. He doesnt care if it is 7G or 6G 99S 99C. This will max my profit for selling it.

So why there are people who cant undrerstan this. If you undrcut more then 1% of price not only you are damaging economy but also you dont get so much money as you could have. Just why?? And if there is something for absurd price noone will buy it and price will go down in time.

Its like if you have 2 piles of gold infront of you and there is 1000G and 950G and you have to choose one. Who would choose the one with 950G?? Its same principle.

its interesting, because people are deliberately selling things below crafting costs, so they are actually losing money. Then there are the people who will probably say 'well it costs me nothing to get the mats cause herp derp blood trader', they're still losing money because selling the raw mats would've been more profitable. They just have no clue what they are doing even though they think know what they are doing, and will aggresively tell you that :P
One time me and a fellow goblin were discussing this same issue, we knew of a guy who deliberately kept undercutting by thousands, and when asked he literally said 'i want to see the markets crash and burn' so do remember, there are THOSE type of people too. Its either ignorant people, people who don't understand the value of what they have, or very very mean people who want to see our dear auction house in flames haha