I usually undercut anything I put up for sale on the market by around 1000 gil minimum. If it's a really high priced item (150 to 200k) I often undercut by 10 to 15k.
Im not gonna spend hours playing the drop 1 gil pissing match with anyone. That's why these greedy ass crafters want people to only undercut by 1 gil. That way they can hopefully come right behind you before anyone buys yours and undercut it by 1 gil.
Undercut it by enough, and their greed wont allow em to match it. If they buy mine up, great! that's what I wanted to happen. At that point, I put even more up for sale at an even lower price.
Too many crafters in this game have some sort of wannabe "gatekeeper" syndrome. News flash, your crap isn't unique...get over it. It's all about the cheapest price...