I will always undercut. And I will undercut by a considerable margin, if i'm still making a profit. I don't need inventory sitting around in my retainer, so the quickest way to sell will always be undercut by a wide margin. It discourages others from undercutting me, when they see a gap between my price and the next lowest.

When the mats for a synth i'm grinding on are 1/3 of what the finished product sells for, i see no reason to maximize my profit. Especially if i'm going through a lot of synths. If something cost me 3-5k gil to make, and the lowest is selling for 15k, i'm going to undercut to 10-12k and sell/make as many as i can as fast as i can.

Undercutting is not a problem. What this thread is suggesting is similar to price fixing. "Let's all set our price high, and the first person to list it, will sell."