Auction House Undercutting

90 Blood Elf Paladin
16830
I was never into gold making i am fine as long i have gold to buy regular things and have for repair but in the few last days out of boredom i tried to earn some extra gold by selling gems.
Now this is the problem, i don`t mind if people undercut me we all do that,that is fine.
But if someone can tell me because i can`t find to see logic here.
Why people undercut gem by more then 50% ?
Edited by Kidja on 18/10/2013 00:33 BST
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44 Blood Elf Rogue
14695
Because they want to sell it quickly?
Either people looking to buy the gem for their gear or other sellers will buy them to put them back on at a higher price.
If you find someone undercutting by a lot, you can buy all the gems and sell them higher.
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90 Night Elf Rogue
8895
maybe they didn't bother to check active auctions, maybe they don't care and just want to get rid of it quickly, maybe they believe that it won't sell at your price and set their own
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90 Draenei Shaman
9525
If they get the base gem for free (prospecting for example) then it doesn't cost anything to make does it? If it sells for 80g that is 80g profit.
I wouldn't undercut by such a large margin myself but then again I am not an AH expert. Some people are simply looking for a quick sale, or are selling in bulk. I sell enough gems every day to make about 800g - 1000g (have only started doing this recently) and I frequently get undercut by large margins. Those gems sell quickly and people eventually buy mine because they tend to be cheaper than the ones that were posted prior to mine (undercut by about 5-10g when I post them). Like I say, some people are just in a hurry to sell ;-)
Edited by Vraks on 15/10/2013 13:57 BST
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90 Blood Elf Paladin
0
They want to sell it fast or probably decided you posted your items for way to much to just undercut you by a few gold because nobody would buy it anyway, i guess.
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90 Gnome Warlock
10245
Because 180g for 1 gem is too greedy?
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90 Blood Elf Paladin
16830
Greedy or not you are the seller not the buyer and people buy gem even if its 300g+
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90 Human Hunter
8270
If they get the base gem for free (prospecting for example) then it doesn't cost anything to make does it? If it sells for 80g that is 80g profit.


Well, actually, it does cost something to cut - it costs a part of all the time and gold invested in levelling the JC profession.

This is what people work on the basis of IRL, too.

If it takes a lot of time, effort and money (in some places) to learn a profession, people tend to charge more for doing it (even if the service itself doesn't take long to do).

The reason people in WoW tend to NOT do this is a) because they don't understand this, or b) to corner the market.

If they sell the uncut gems at the same price as (or for only very slightly less than) the cut gems, they cut out the people who only have JC (no mining) from the equation and so, lower the competition.
Edited by Tigemma on 15/10/2013 14:16 BST
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85 Tauren Death Knight
6695
Why people undercut gem that costs 180g by 100% in other words they put for 80g.


That math.
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90 Blood Elf Paladin
16830
@Jae Ikr

@Tigemma

Probably "A" because "B" is not the case here because dudes are putting 10 gems to ruin economy.
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- World of Warcraft
90 Gnome Mage
2110
Why people undercut gem that costs 180g by 100% in other words they put for 80g.
I never was good at math but i don`t see logic here.


You must be even worse at math than I am,
the difference between 180 and 80 isn't 100%.

And depending on the average price of the gem I might undercut you like that.
Ofcourse I might try 150 at first, depending on the market.
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90 Blood Elf Paladin
16830
And lose 100g per gem. Smart !
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- World of Warcraft
90 Gnome Mage
2110
And lose 100g per gem. Smart !


If mine sell and yours don't, then who is losing ?

Edit: Also, I try to keep my prices fair for the buyer.
Edited by Zazkya on 15/10/2013 14:26 BST
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90 Blood Elf Paladin
16830
They will because people are buying it i was selling it at those prices before that.
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ppl can sell items for what ever they like, i have noticed recently that the armoury app can get prices very wrong

in the scenario the OP describes i would buy the gem and relist it
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90 Human Hunter
8270


Probably "A" because "B" is not the case here because dudes are putting 10 gems to ruin economy.


Well, yeah, that would possibly be reason c) they have tried competing with the established JC sellers, have failed due to things like instant undercutting and so, have decided to just sell all the gems they have at a low price, to get rid if them and hopefully, also, crash the market.

If people weren't quite so ruthless in the speed of their undercutting, so they gave other players more of a chance, this would happen less.

However, if the person sells very low, the other sellers just buy up their stock, so don't care.
Edited by Tigemma on 15/10/2013 14:29 BST
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90 Blood Elf Paladin
16830
ppl can sell items for what ever they like, i have noticed recently that the armoury app can get prices very wrong

in the scenario the OP describes i would buy the gem and relist it


I was asking why i did not said they must put same price as me



Probably "A" because "B" is not the case here because dudes are putting 10 gems to ruin economy.


Well, yeah, that would possibly be reason c) they have tried competing with the established JC sellers, have failed due to things like instant undercutting and so, have decided to just sell all the gems they have at a low price, to get rid if them and hopefully, also, crash the market.

If people weren't quite so ruthless in the speed of their undercutting, so they gave other players more of a chance, this would happen less.

However, if the person sells very low, the other sellers just buy up their stock, so don't care.


True i think i`ll just buy all those gems now.
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90 Human Warlock
5605
And lose 100g per gem. Smart !

If they farmed ore and prospected it all it cost was a bit of time. Personally I think 180g for a gem is a lot, if you buy your gem and cut them then your overheads will be much higher.
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90 Human Hunter
8270


True i think i`ll just buy all those gems now.


You could do that, yes, but there is obviously no guarantee you will be able to resell them again for the previous price, because it's possible that goldsellers have moved onto (or returned to) your realm and that is just the kind of price they will be looking to sell gems at, from now on, as it means they sell faster.
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- World of Warcraft
90 Gnome Mage
2110
15/10/2013 14:37Posted by Dottie
And lose 100g per gem. Smart !

If they farmed ore and prospected it all it cost was a bit of time. Personally I think 180g for a gem is a lot, if you buy your gem and cut them then your overheads will be much higher.


Yes, one of the reasons I'd undercut is because besides making some gold I'd also
think the price is too high.

Besides I'm a miner (on this, and many other chars) so on the topic of gems
they are just an extra bit of income to me, no biggy.

But yeah, I do the same with my ore, only less radical.
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