I laugh at the 1 gil undercutters. Its just a "piss-off" type antic to get you to drop the price stupidly low in rage and then someone can come in an swipe it form you at a steal.

Flamds1 is correct, if your gonna undercut, undercut or just stop wasting your time.

I farm/gather most of the stuff i make so all that is lost is time and on a lazy Tuesday evening while waiting for your queses to pop up, it beats just sitting around and doing nothing.