It's meaningless to undercut by huge g, thinking you've taught the 1g undercutter (UC) a lesson. Their strategy is to out-update. All you did was to contribute g to the next buyer to show up. I may let UCs go, if it is 1 item. They get a sale, and the 2nd buyer to come along gives me the extra gil on the next sale. Plus 1g UC may resume, and keep the price level higher for a while longer than jumping down to an UCs price level. Other times I continue 1g UC from the lower level. Then at some point I will exit & watch. Sometimes, 'everyone' ends up exiting a market that is pushing below-costs prices. Then I check back, the prices are high again, and I re-enter. Or I simply know from long observation what the multi-month avg price is, & when the current prices go low enough, I snap up everything too low & hold it. Eventually, I can sell for 2-5x my buy-in, depending. Just don't try this without knowing what the long term avg price is, and having patience.