Undercutting

[PirateCat]

There are a bunch of reasons why people might undercut something by a large margin:
- They think the current price is high enough that it's discouraging sales and want to set a new price point so the item will sell faster.
- They got the item via a method where they didn't have to put a lot of effort into it (quest reward, quick venture) and they care more about offloading it quickly than getting the best price for it.
- They don't want to play the babysitting game that would result from small undercuts and would rather just get to the point, or send a message to competition that they won't be undersold. (I've done this on occasion if something has taken a long time to sell.)
- They're trying to edge out competition for that market by pricing at a loss to begin with.

Your options are price match/undercut yourself, buy and relist, or hold out and hope the undercut gets bought out and isn't replaced. This will work better if the item was a one-off freebie than if someone's trying to corner the market or if it's a real price correction.

Dropping from 5M to 1M is a pretty steep cut, but 5M is a lot for one glamour item. If the mats for the piece cost less than 1M then that's probably just competition causing the item to settle at a more realistic price point. That one listing for 5M was probably priced that way because it was the only one listed for sale and the seller might as well try to get a lot of gil for it, but they may very well have been expecting the price to go way down before it actually sold.