Undercut him back.

Look at it this way. The average Glamour prism costs about 1k to make. Anything above that is pure overpricing. if he wants to cut his profits, and attempt to get more buyers by doing so, that is his right.

Undercutting, no matter by how much, is a normal part of the market economy. Its all a matter of who has the lowest cost to make it, and competition is normal.