The way people price items is laughable at best!

[Zfz]

If someone is willing to sell it at a much lower price and by doing so, "destroys" the market, then it just means the original higher price is over-pricing. That's what it means. If people selling at a much lower price cannot sustain it and the price always bounces back, then it means that the demand exists to justify the price. If the higher price really has a demand, then there's no way to crash the market anyway. The market crashing due to undercutters just means there's more supply than demand.

A profitable venture will eventually see more entrants, bringing the price down.

Trying to maintain a high profit margin by getting all the sellers to sell at "the right price" is called collusion. It'll only work when the market has a barrier to entry.

Which means your going to need twice the amount of time for gathering.

Or the crafter may be just buying all the materials off the market board and using a macro to craft his item. When economies of scale occur, what really matters is not the per-item profit, but the total profit per session, and that often means sacrificing a portion of the profit to introduce your product into a bigger market, giving you a higher turnover.

The lower the price, the more people can afford and are willing to buy it. I may be able to sell 2 per day at 90k and make 60k*2=120k profit, but it's better for me to sell 10 per day at 45k and make 15k*10=150k profit a day.