How can a seller compete with a seller whose products are way underpriced?

[stevendevinc]

I see a few sellers selling the same products at my cost and I will lose money if I sell them that cheap. Is there a way to overcome this and sell the same item?

[onefootflippers]

90 percent of the sellers on ebay seem to think they can somehow sell things at higher prices than the competition. 

That is why 10 percent of the sellers get most of the sales.

If you can't get something cheap enough to have the lowest price then find something else to sell.