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SiJira
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Posted - 2008.03.04 16:45:00 -
[31]
 Originally by: Ammoina
Originally by: Gamesguy
You don't get it.
If I undercut by 1 isk, you will simply do the same, and then we get into a 0.01 isk war, which is extremely tedious.
Or I can decide to make 5% less profit(remember this is from a producer point of view) and sell my stuff with zero competition in one day.
Guess which one most people choose?
Cutting your profit by 5% generally isn't going to drive anyone out of the market. The rest of your post is valid enough. If it works.
you dont know what someone elses margins are
if you think you are -educating- the masses by posting on the eve online forums - 
stop posting your garbage arithmetic that doesnt apply to anyone but you because people can be selling below profit just to remove you from the market and your anger makes them happy
Trashed sig, Shark was here |
Ieu Duin
Amarr
Star Sabre Industries
Dark Taboo
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Posted - 2008.03.04 16:47:00 -
[32]
Edited by: Ieu Duin on 04/03/2008 16:48:10
Originally by: Gamer4liff
Edited by: Gamer4liff on 04/03/2008 15:11:08
Originally by: Ieu Duin
Originally by: Gamer4liff
Because people are idiots and don't realize that the people in general aren't going to buy more of a good just because it is cheaper.
This is just about the most ignorant statement I have ever read on these message boards.
Um, yes they are.
No, they aren't, general consumers buy 1 ship, one module at a time. Nobody is going to buy two hulks just because the price is 5 mill lower on the order than regional.
The main reason people buy more than one is because they *need* and *want* more than one, not because of the price.
Besides, Kenysian economics don't mean anything in a system with the "unique" incentive set we have here in EVE.
EDIT: not true for ammo, for example, and the absolute cheapest T1 mods.
EDIT2: .01 undercutting is the most efficient way to solve pricing disputes, any other method is wasteful and harmful to the market. If you can't keep up, don't try.
I understand what you are saying about pilots buying high-end ships. I don't believe high-end ship sellers expect that people will buy multiple ships if the price is the lowest in the area, but that pilots will buy THEIR ship because it is the lowest. With high-end items you don't price for volume sales.
For smaller ships and, as you said, other consumables sellers do expect that if they price their ships competitively they will sell higher volumes individual buyers.
So to say that a buyer is not going to buy more of something because it is cheaper is fundamentally incorrect. More pilots will by items that are priced below the market. If I price my Hulks below the area market, more pilots are going to buy my Hulks. Maybe not one will buy them all, but who would expect that with Hulk sales?
If a pilot has 50 options to buy what they *need/want* they will be the least expensive. Therefore the smart seller will price their items to so they will in fact sell.
Quote:
There are no fair fights in EVE. If you're in a fair fight, you planned wrong.
-- Agent Li, Caldari, Galactic Defence Consortium, BLACKHAWK FEDERATION
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Ammoina
University of Caille
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Posted - 2008.03.04 17:11:00 -
[33]
Originally by: SiJara
stop posting your garbage arithmetic that doesn't apply to anyone but you because people can be selling below profit just to remove you from the market and your anger makes them happy
What anger? Nothing in what I've written seems very emotional to me. Perhaps you just get off a bit too much on other peoples grief that you've got to imagine it where it does not exist.
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Cipher7
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Posted - 2008.03.04 19:25:00 -
[34]
Different trading styles.
Some ppl go for the fast buck.
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Viktor Fyretracker
Caldari
Worms Corp
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Posted - 2008.03.04 23:53:00 -
[35]
if i undercut even by 5 isk i can possibly get a sale before you due to how people are fooled(like products sold for $19.95).
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