What is your ACTUAL reasoning for undercutting?

[ElazulHP]

If someone undercuts me by 1 gil I undercut 50k. If you want to undercut then lets do it! 1 gil is so petty. Be a man. Undercut for real. I do this until the value of the item is so low it is a loss to sell it. This usually chases most people away. When this fails to work I simply make the item at a loss many times over till they do leave. Then I smile, control part of the market and rake in your gil.

This will scare off the dabblers sure, but it won't work on an omnicrafter selling in bulk and already sitting on hundreds of millions of gil. They'll just rock bottom down to cost and out produce you until you go away then raise prices again.