Market Price Chasing

Do you chase the top of the pricing queue?

If someone undercuts you, do you undercut back, or do you wait for the market to correct to your price?

With the broker relations patch, frequent price changes will quickly erase your profit margins. If current market is substantially above my floor price, I’ll list there - only need to sell a couple of items at that price for the additional profit to cover the relist fee. If the price drops, I’ll move directly to my floor. At that price I’m still making a decent profit and the product will sell reasonably quickly.

it depends

unless you get undercut again. Depends on what it is.

If you price your product for profitability, you will always be undercut again, but there are limits or prices would have dropped to 0 and stayed there a long time ago! Commodity markets are cyclical - if you set your price mid-cycle, the market will come to you.

An exception would be a period of deflation where you’re selling into a falling market - that’s a poor time to be a producer. If you’re selling into a rising or stable market - the expected outcome if CCP is creating scarcity - simply wait for the market to come to you.


What about buying?

If you’re offshoring your buy orders at a structure with 1% brokerage, your relist fee will be .25% of the order value - if you’re listing in a station with 3% brokerage the relist (buy or sell) will be .75%. That can get very painful very quickly. If you set your price close to fair value in the first place it will be difficult for people to undercut you and still make a profit - not that that will stop some people, they’re playing a game - not running a business, and really don’t care if they’re making a profit but those orders tend to clear quickly.

If you try for a windfall when the market price is out of line, you’re taking a gamble and will probably need to relist.