#undercutting

Competition can actually motivate innovation

Competition does not actually require or even suggest detracting from another's efforts

Lust x just about any other sans, expect for any other ship kids. (Like, I'm not doing Lust x Pj) and, it'll also be queer platonic, MAYBE romantic? just because while I don't mind ships, I just prefer platonic/semi-romantic relationships!

Keep Undercutting Clemson. The Tigers Have Thrived on It.

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CHARLOTTE, N.C. — Each time Clemson drops in the polls (despite another unbeaten season) or quarterback Trevor Lawrence throws an interception or somebody dares to mention the schedule, it may as well be red meat dangled under Dabo Swinney’s nose.

So it did not take much to get Swinney, the Clemson coach, riled up last week when he was asked about the relevance of the Atlantic Coast…

Undercutting is one of the primary economic concepts that sellers utilize in Final Fantasy XIV, knowingly or not. Undercutting is simply offering a good or service for cheaper than a competitor. This by itself isn’t bad, and is in fact a large part of how the economy returns to equilibrium. However, Predatory Pricing, the type of undercutting most commonly utilized in game, is an extremely harmful practice to the economy, and should be avoided in all circumstances.

The most common instance of this occurring in-game is a single gil undercut, where a seller will look at the marketboard, and sell their good for one gil less than the lowest seller, in order to sell faster. This can also be expanded to a much larger scale, where sellers can hoard many materials and flood the market at a lower price, sometimes with a gap of more than a thousand gil in an attempt to control it.

Viewing undercutting as profitable isn’t exclusive to the Final Fantasy XIV community, but is also widely believed in the MMO community. In this World of Warcraft forums, a player says “I'll almost always take the lowest price I see on the [market] and basically put my items up for between half and 2/3's of that price… If you are consistently undercut, I'd say you need to adjust your perception on an item's value.” Because equilibrium naturally settles, selling that far below the lowest value only serves to drive the economy down with no gain. The seller turns less of a profit, and purposelessly brings down the value of a market.

There are also many quantifiable disadvantages to undercutting. Predatory pricing is illegal in the real world for that reason. It leads to price wars, in which two or more parties drive down their prices in a market in order to drive the other out. Undercutting makes markets more vulnerable to monopoly, where one party will be in full control of pricing and supply. The issue with undercutting in this type of market is that there aren’t any costs to maintain business, and so nobody can sustain a market for long enough to force another out to gain profit in the long run. In essence, sellers only manage to drive the value of their markets down in the long run without accomplishing any profit in the short or long run.

The only upside to undercutting is consumer side, which is counter intuitive to the view that undercutting benefits the seller. It can give consumers leverage over the market, enabling them more choice when shopping around. However, those benefits are extremely limited in a formatted economy like the market board, and so the buyer’s control is limited to the normal workings of equilibrium.

In conclusion, undercutting serves no purpose but to lower the value of the market in the long run. Lazy and predatory pricing lead to a smaller profit in the short run, and don’t accomplish anything productive or conducive to business in the long run besides decaying the economy.

Sources: https://www.investopedia.com/terms/p/predatory-pricing.asp

https://www.investopedia.com/terms/p/price-war.asp

As a business owner competition is healthy within the business community. There are several businesses that a person can choose from whether small or large. Some businesses may do or offer similar services or products while others do things totally different. This is based on numerous factors and also gives people choices. You may love one fast-food chains fries and dislike another, you may enjoy one type of soda pop and despise the taste of another. Perfect example is licorice; my kids and my mother love Twizzler while I enjoy Red Vines. I think Twizzler tastes like plastic and they think the same about Red Vines, lol. It is a similar product but we have our preference. I remember my grandmother loved Pepsi, if you brought her a Coke she was not having it! Every consumer has a preference but that does not negate the other business it simply gives people choices. 

Now I know several small business owners like myself. There are a handful that if I am unavailable I can call on to care for my client. In turn there are a handful who can call on me just the same. We have a mutual respect for one another’s craft and hustle. We have created a strong business community in doing this. It allows us to network and although we don’t sit down and compare notes we can call on one another for general questions. We are not secret shopping one another however I also believe our rates are competitive. Similar to the candy references I mentioned, the products are similar but not far off in cost. It is up to the customer to select which they would like to purchase. Just as it is up to the customer to select myself or another service provider.

I have noticed those who feel the need to infiltrate are doing so by any means necessary. What am I saying here? In a nutshell...UNDERCUTTING! it is an enormous disservice when you undercut your pricing simply to gain a customer. Yes, there are people who literally find out how much you charge and will cut it down anywhere from 35-55% simply to attract the customer. I am not referring to specials or sales because undercutting is done with intent to steal. It is not about healthy competition or community it is flat out shady business. Some times a potential client will inadvertently say how much another person quoted them. There are also times customers intentionally say how much another person is quoting simply because they want the lesser of the two. Either way it is not good business. Yes the one undercutting may keep the customer but now the business community knows how you operate.