| Article taken from | | | | someone who drastically goes below their |
| Undercutting is an art form in its own right. Some | | | | profitable price range and 2. you're now appealing |
| players undercut by 1 copper, others by 10-50% | | | | to another market entirely: your fellow |
| of the original price. Some use the Quick Auction | | | | auctioneers. |
| addon which you can find detailed in this thread on | | | | Take armor vellum III's for example, I can sell |
| the JMTC forums. | | | | these for 2 gold each and still make a minimum |
| Many of you are probably wondering, well what | | | | profit. So I post three hundred of them for 2.5 |
| does Markco do? Does he play the 1 copper | | | | gold each on any given day and every single one |
| fiasco and sit at his computer for hours waiting to | | | | will sell in 24 hours. The next morning I wake up |
| be undercut so that he can return the favor? | | | | and there are my armor vellum III's sitting pretty |
| Does he always stick to a 10% reduction of price, | | | | and being sold for 500% markup from what I |
| hoping to infuriate his competition? Does he enjoy | | | | was selling them at. In comes another 300 armor |
| talking in the third person? | | | | vellum III's for the auctioneers and buyers to pick |
| I'd have to say no to all three of those questions. | | | | up. I make oodles and oodles of cash and the |
| What I do is gauge supply and demand. Price is | | | | people buying me out relist for oodles and oodles |
| merely the bow with which I play the perverbial | | | | of cash. I win, they win, and the consumers win. |
| auction house violin. Undercutting is a powerful tool | | | | What's more, no one else has the cahonies to do |
| which will always negatively effect the price of an | | | | the same, and if they do I will simply run the price |
| item. By being wise about how much and how | | | | into the break even point which I know they can't |
| many items you undercut with you can keep the | | | | compete with. That's my favorite way to |
| price from dropping too drastically, or you can | | | | undercut. |
| send it into the stinking pits of the earth, dragging | | | | Keep in mind that undercutting drastically effects |
| your competetition down with you. | | | | supply and demand. If you want your goods to |
| A normal undercut is what I like to refer to as a | | | | sell quickly and efficiently then do not preform a |
| 5% cut in which I am selling one or two items and | | | | small undercut with so many items that supply |
| want them to be the best deal when I think they | | | | gets too far ahead of the demand for the item. |
| are going to sell rather quickly. A severe undercut | | | | You'll be stuck with items that quickly become |
| is when I want to drive off competetition and | | | | undercut and never sell. Remember that |
| force both the auctioneers and then buyers to | | | | undercutting is an artform, so don't go in there |
| grab my goods. I find that the latter is far more | | | | wildly waving giant paint brushes while drawing |
| profitable because 1. people will not undercut | | | | stick figures on a torn canvas. |