Herdo
Radix Financial
4
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Posted - 2015.01.20 20:50:42 -
[1] - Quote
I'm going to go against the grain here and say these "deep undercuters" are no better than the "minerals I mine for free" crowd.
These theories work in a vacuum, but at the end of the day it suffers from one major flaw. It gives way to much credit towards the intelligence of EVE players.
This may work in very small stations, but good luck trying that in Amarr or even Hek.
The other week I was reselling some ships in a smaller trade hub. Comfortably reselling them for a near 150m profit, or something like 25% markup. I was buying and reselling 1 every 3 or 4 days so it was a slow but steady return, and I was competing with 4 or 5 others who were probably selling about the same.
Then one day Mr. Deep Undercuts comes along and decides he's going to "capture the market". So he lists his 5 ships for no more than 3% over buy price.
"This will drive the competitors out!" he says to himself, gloating over his ingenious plan for market domination.
Wrong.
Traders who can't be bothered to remember what they acquired the ship for and panic sellers updated their orders to beat his. I can't blame them. This guy listed a weeks worth of hulls and at some point you just have to say "Screw it I'm out".
That was almost 2 weeks ago and the market hasn't recovered. In fact it's gone down further. This guy could have happily joined in on the fun, reselling a couple by now for a few hundred million in profits, but instead he decided he was Warren Buffet Jr. and is now probably selling his stock at a loss.
I have no idea what he acquired them for, but I know I picked them up at Jita sell prices which was at about the buy price in the station I was selling them. What's his end game? Once he "drives everyone out", how long does he think he will have the market to himself? I'd give it a day before he's competing with 3 or 4 others, the same as if he were to have listed reasonable sell orders from the start.
Hey it's that guys time and money, and he can play the game anyway he chooses, and maybe he is selling them at a decent profit, but just like the "minerals I mine for free" crowd, lost profit is still a loss in my book.
These people are no different than the "I bought and resold this item for 1000% ROI!. Yes it took me 3 months to sell it, but it's still free money!" Sure it is kid, and the minerals you mine are free! |