Originally Posted by
Puffpower
If you CAN sell a product for much less than your competitors, turning a profit and keeping business away from them and with you, do it.
If you WANT a product, you're always going to look for the best deal while retaining certain (your own) standards of quality, which in wow is negated since [Item] either exists or does not exist. if it does and there are lots of them, you get [Item] cheap (everyone undercutting each other), if supply is sparse, you pay more because of less competition at pricing.
Welcome to basic economics; supply & demand. While wow is only a "game", this model still applies too the fullest.
While there are lots of threads on this topic & the majority of them are replies such as "12 year olds being dumb", the truth is, people are buying their "product" and not yours. They must be turning some kind of profit or they wont be doing it (even a 12 year old realises they're running out of gold). As posted above, a better action to take, is to "buy up" your competitors and create a monopoly on the market. Assuming you have the initial fund of course xD
The fact someone undercut you and is getting their product sold isn't really a negative on them, more yourself for not adapting to what is obviously a changing market as supply increases (new stuff becomes less rare / easier to obtain).