Votee
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Posted - 2007.03.28 10:03:00 -
[1]
It was a nice reading, but feels like that everybody supports the confronting way, which is strange for me.
I am pretty surprised with all the posts that you destroy the market and its good for you in the long run, and it results a monopoly for you. Maybe its working with low turnover items or in backwater systems, but with high volume items you have no chance with it. You compete with 10-20 traders, and there is no way you can scare away all of them, because people stepping in and out of a the market daily.
As far as I see all the high volume market have people who try to get it destroyed every next week or so, but it surely doesnt result in a monopoly, just some traders suspend their trading for a few days while the market regenerate, and at the moment when there is a decent margin - 10-12% -, enter again.
So practically the one who lose on the destroying is the one who try to screw up the market, because other people simply stay out when there is hardly any profit in it.
The destroyer is the one who sell low and buy high.
Every time when I witnessed a price war / market pvp all the traders lost money and in the long run nothing changed, just a lot of profit was handed to the customers instead of the traders, so market wars are definitly not good for the traders.
You keep mentioning that you have lots of ISK and highly diversified. Guess what, most people who do trading are like that, because lets face it, tradeing in EVE is easy and very lucrative, so its no big deal to have much cash - tens of billions - from it.
So the "screw up the market and the opponents leave because he is in only one market, and so I will have a monopoly" is simply not working.
Most of the succesfull traders I know constantly monitoring a lot of markets, and when there is decent market they enter, and when not, step out of. And hardly any trader step out of a market permanently, because simply there is no point to do so.
As far as I see, it is almost always better to cooperate and try to maintain a decent spilt, coexist with the other traders and share the profit with others.
Thats what is profitable in the long term not the warring, because there is virtually no entry barrier into the T1/named markets, so there will always be newcomers, no matter how hard you fight those market wars.
Of course if you destroy a given market, there wont be newcomers, but you also wont make any profit, so no point doing so.
regards,
Votee
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