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Step 3: Determine Undercut

Source Ultimate Campaign pg. 138
The Undercut Percentage is a portion of the item’s price or value used to determine the buyer’s Initial and Final Offers.

To determine the Undercut Percentage, have the buyer attempt a Bluff check opposed by the seller’s Sense Motive check. The Undercut Percentage is 2%, plus 1% for every point by which the Bluff check exceeds the Sense Motive check (minimum 0%).