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Marketplace Offers Started by: Stelengum on Mar 03, '14 11:25

Currently, you can make listings on the marketplace whereby the price can be changed by as little as $1. 

I would like to suggest that we introduce a limit on how much/little you can outbid/undercut another listing by.

This isn't a big issue by any means, but it is a little tedious how small the increments can be. Perhaps making offers adjustable to the nearest $10,000, $5,000 or $1,000 would alleviate this problem.

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I actually like that idea...it is rather annoying being undercut by only 1$ 

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I agree with this idea. Krytical has explained.

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If that's not a good idea...then atleast charge a fee to post. to minimize the cancel and re-posting...

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Anything to reduce the amount of undercutting etc.

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I can appriciate the logic of this concept.

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The other night we had to dump the entire marketplace to fix a bug, it meant that all the users had to put back up their listings.  I noticed an interesting thing.

Right now its set to automatically prefill the price of current listing -/+ 100.  If there are 5 people each undercutting by the default value, this means that it will go down by a total of 500.  What I saw was that many were using their own values and undercutting by thousands - 5k, 10k a pop.  The price went from 500k, to 450k, to 400k, to 350k in minutes, then down to 275k within a half hour.

Ive learned from this that people will undercut regardless, while many use the default 100, some undercut by a substantial amount more.  If we make the cut a minimum of 1000, then all it will serve is to drop the price even faster by those who use the default amounts.  It would take 1 step to drop the price 1000 when before it would take 10 using the defaults.

I think at the end of the day, by increasing the minimum amount to undercut by will still result in the same amount of credits being sold, but everyone will make less off of it.  If someone will undercut you by 1 dollar to make a sale, there are an equal amount of people who will undercut by whatever is necessary to make the sale *right now*.  Changing the dollar amount wont leave you in the "#1 selling position" any longer than it does now.

This is just a theory, I could be wrong, but this is just what I am gathering by watching the market.

 

One thing we can do is change the selling order of when you are grouped in (in the case of a bulk listing of more than one seller for the same amount and same quantity).  Example: If you are selling at 350k, and another seller also lists at 350k, we can do a few different options:

1) It equally shares the sales round robin style.  Seller A gets one, Seller B gets one, Seller C gets one, Seller A gets one, Seller B gets one and now sells out, Seller C gets one, Seller A gets one, Seller C gets one.

2) It positions you by the amount of credits you have listed in that bulk listing.  If there are 50 available - one seller has 40 one has 10, it goes Seller A, Seller A, Seller A, Seller A, Seller B, Seller A, Seller A, Seller A, Seller A, Seller B - basically evenly selling them so they all end up at 0 around the same time.

3) It positions you by first in first out.  The oldest listings are what get purchased from the bulk listings first, and the newest last.

4) Totally random - it just picks a random one and sells that.

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Based on Squishy's reasoning, I believe Option 3 would be best.

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Options 3 and 4 make the most sense to me. I think i'm going to say i'm more in favor of option 3

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Option three would just lead to people continuing to undercut by one dollar just to make sure that theirs get sold first.

I think that option 1 is probably the best way, although I'm not sure if any of these options will stop the tiny undercuts either way.

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I don't really mind if someone is prepared to undercut it by a worthwhile amount, because that is ultimately their prerogative. It just annoys me when I see 10 different offers all within $1000 of each other. If we limited the minimum amount you could undercut the previous offer by, at least people would have to work a little to get their offers made and compromise by taking a smaller profit. At the moment, it seems one just reduces their offer by tiny amounts until it is top of the list.

I echo Northman's sentiments in terms of none of those options really solving the problem. Of the choices, I would say option 1 or 4.

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when most people get undercut they cancel there sale and relist it for a lower price....I was suggesting maybe charging a pretty hefty fee for canceling a post...there for eliminating so many cancels and reposts..possibly.
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I was suggesting maybe charging a pretty hefty fee for canceling a post

I understand your logic behind it, but I just wouldn't feel comfortable charging a fee for listing.

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Just putting it out there but has it ever been considered that we hide the listings?

Buyers put in I would like to buy X credits for Y $ value

Sellers put in I would like to sell X credits for Y $ value

Then the market place matches any compatible offers.

 

A kind of silent auction system?

 

Is there a glaringly obvious problem with this I am missing? Would fix all the undercutting at a stroke.

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HarryMorgan, I see a few issues. One, there would be no frame of reference for either group. If all numbers are hidden, how would anyone know what $$ to put in? The sellers would sell at $500,000, and the buyers would buy for $250,000, and no matches would be made. Two, there are 250,000 possible prices to select between $500,000 and $250,000, so the chances of two matching exactly are very small. Undercutting would disappear, but so would any transactions.

I think the minimum price increase is a good route, as it would force you to be a part of the bulk at the current price or go more than $2,000/credit (or any other number) above/below that price.

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If a buyer wasn't managing to buy for 250,000 or a seller sell for 500,000 they could re-list. Which is exactly what people are doing now but without the annoyance of being undercut by a single $.

 

As for exact matches I meant more of a best execution system. IE Buyer wants to buy for 250,000 seller has put down to sell for 249,000 then the seller gets a extra $1000.

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Just re-reading this thread by chance and I think HarryMorgan's suggestion is solid.

Adopting a system similar to DFPs in that the game tells you if you're waaaay off with your offer/sale price. So if you tried to list for $500,000 but the highest offer on the table was $300,000, the game throws out a message saying you need to sharpen your pencil to something within 10% of the highest offer.

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