>That is when the money will really be earned.

That time is never going to come, others are not sitting idly either. :) - since I am not american I don't know the precise terms to define such situation. But as we would say 'more clients, more profits' but in the end, you start losing customers, when you charge even pennies more, and you become a victim of your own.

>They are competitive on EVERY product

This is the misconception, they are not being competitive at all. :) they are only being arsehole :) as I would call such competitor in my own industry.

Being competitive means, they quote prices which has profit, however they blow away the competition by virtue of either their skills or costs.