the market is a backwards auction, undercutting is just the way the market works here in FF14. i would prefer another system myself, because gathering materials, crafting the item and then playing the market game is a bit much for the seller, while the buyer just click one time on the cheapest item.
but however, i have only 2 retainers. that's only 40 items i can list on the market. the faster i can sell an item, the faster i can free one item slot and can list a new item and sell it, so undercutting leads to a higher profit in the end.
