Attention Sellers: Read This

Day 2,574, 11:39 • Published in Canada USA • by Weterhawk

Undercutting is a problem for sellers. It causes the prices of everything to drop. Which is bad for sellers. If you don't know, undercutting is when you sell something at a price lower than everyone else. Don't do this. Sell everything at the same price everyone else is selling it at. You are only getting less money for selling it at a lower price. Yes, it will sell faster, in wrm, it'll take 2 or 3 hours, but if you sell it at the price everyone else is selling, it will sell in a day. You don't need your item to sell in less than a day.

How it drops the price:
wrm was selling at 7 cents a piece a few month ago. Then in a week, it dropped to 2 cents because of undercutters. This is how:

1. Seller that doesn't know what he's doing sees this:

wrm - 0.07
wrm - 0.07
wrm - 0.07
wrm - 0.07
wrm - 0.07
wrm - 0.07


He thinks to himself, "hehehe.. i'm going to sell my stuff quicker if i put it up for 0.06. ...clever me"

2. Now, another seller sees this:

wrm - 0.06
wrm - 0.07
wrm - 0.07
wrm - 0.07
wrm - 0.07
wrm - 0.07

He thinks to himself, "Oh no, my wrm won't sell if I put it up for 0.07, no one will buy it when there's a cheaper option! I have to go to 0.06 now."

This repeats until the first page looks like this:

wrm - 0.06
wrm - 0.06
wrm - 0.06
wrm - 0.06
wrm - 0.06
wrm - 0.06


So now even sellers that know what they're doing, need to sell at 0.06 to make a sale. Then someone else will come around and sell for 0.05. It eventually got to 0.02.

By undercutting, you're making less money in the long run. 1000 weapons at 0.02 is $20. at 0.07 it's 70. That's a big difference, 50 extra dollars a day if no one under cutted. (If you're making 1000 wrm a day)

I numbered the 2 sellers doing what they shouldn't be doing. You can do something different in these situations.

1. It will sell within a day. If not 1 day, then 2. You don't make extra money by selling it faster, you just get to see a big number sooner.

And always look at the market place before selling. Sometimes erepublik will set the price to be the same as everyone else, sometimes it will set it 1 cent lower. So always check to make sure.

2. Don't match the price of the lowest seller. Sell it at 0.07. The 0.06 well sell out quick, then everyone will start buying the 0.07 again. You might have to wait a bit longer, but it's worth it. If you have allot of money, then buy the 0.06, then add it to your list at 0.07.

Now I have an idea to reverse undercutting.
Uppercutting.

I do this myself, but there's no way one person will change the market.

Sell at 1 cent above the going rate. Leave it like that until your storage is full, then sell at the going rate. If everyone does this, the price may go up. If everyone except say 5 people do this, then once those 5 people's stocks sell out, your stocks that are 1 cent higher will start to sell.

You won't lose money buy doing this, you just won't get it everyday. You'll have the same money at the end of the week as if you had sold at the going rate everyday. Do this, and the market may be again in our favour.