How do I know what to price competitively?
Watching the competition's prices and adjusting them accordingly
I was a renowned crafter on my server in XI-- late in the game's life, crafting became very difficult to profit off of because the markets were all saturated with normal quality items which normally sold for a loss, and the only way to turn a decent profit was to make a high quality item that was purely a matter of chance. To top that off, not everyone understand the chances of HQing an item and even those items that could net you a large profit if you HQ'ed on the first try would actually be a loss to make, statistically. e.g., if it costs 5,000 gil to try a synth, where NQ items sell for 1,000 gil but HQ items sell for 40,000 gil, but the chance of HQ is only 10% at best... then for every ten tries you will spend 50,000 gil and only come out with 49,000 gil worth of merchandise on average (not even counting failures). Since people didn't understand this, they would happily sell items for less than their actual worth.
Any crafter that wanted to continue to make money in this market had to constantly look for items that were profitable. It remains to be seen how durability will ultimately impact crafting in the economy, but even in this worst case scenario, I was able to make plenty of money crafting.
Certain markets, like very high demand items (things that are must-haves to play the game-- in XI, these were things like the popular foods, ninja tools, arrows, common crafting materials, etc.) will fluctuate quickly and will have to be watched more carefully than others. At some point they may bottom out and not be profitable to make-- then people will generally stop selling them (unless they are the least unprofitable thing to make where something is needed to skill up on). Then the price will go back up as suppliers (i.e., you) see that there is not enough supply and they can charge whatever they want.
This is just how business works, more or less.
Ok, now we're going to get slash fiction of Wint x Kachi somehere... rule 34 and all...
Never confuse your inference as the listener for an implication of the speaker.
Good games are subjective like good food is subjective. You're not going to seriously tell me that there's not a psychological basis for why pizza is great and lutefisk is revolting. The thing about subjectivity is that, as subjects go, humans actually have a great deal in common.