How to fix extreme undercutting (from someone who extreme undercuts)

[DarthBuzzer]

But that is only a kind of temporal, its a condition that cannot be sustained for much time if the price is lower than the raw materials cost, After that the price will be back to normal.
So thats a normal (though not a nice one) practice in a free market from big sellers to kick out from market to smaller sellers.

In a free market price is auto-regulated by offer/demand. So gatherers have allways the best rolls to win since their costs are reduced in expense of the time they invest gathering.

Thats not true. Some servers (like mine) are controlled by 1 person for years, never letting prices rise to anything even closely resembling normal except in rare days of inactivity. If people have 100s of millions of gil then sustaining this permanently is a piece of cake. The fact that this is possible indefinitely needs to be fixed, because new crafters on such servers will just stop crafting after realising theres little profit to be made without spending ages gathering materials for everything.