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I'm a liberal. I'm also a businessperson and an entrepeneur.
I'd say in the first place, you're working with terrifyingly small margins if you're only making 10% of your retail price. Most everywhere I've worked (and CERTAINLY every business I've managed) has had a minimum margin expectation of 20% and targets in the 25% to 30% range. That's for general retail sales, there are certainly circumstances where you'd extend discounts, but that margin range allows you to do that.
Second, I've been in businesses where the competition undercut my prices to un-competable levels. It's not fun. What you do is, you don't even try to compete on price. You position your product as distinct from the competitors', you compete on features and services, etc. Profit margin is the lifeblood of any business, and if there comes a time when I can't sell my products or services in a way that preserves the margin I need, I'll go into the shrimp business.
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