I try that once (not during a patch though).

Lets say you price at 20G per bag.

People who have been to lazy to put out their bags then jump on the AH from no where.

You don't know what to do when someone puts out netherweave cloth at a cost that would equal 20G a bag. If you buy it then you make no profit if you leave it then there isn't a shortage and people who will want to skill up will buy it and sell the bag at cost.

What if materials is put out at 19G, you gonna buy at a very high price and make 1G profit just to keep up the shortage? Rest assured others will be happy to make 1-3G profit so you have to buy at anything under 19G to keep shortage. When farmers see their cloth selling for 19G instead of the old 4G they step up their efforts and farm more putting more on teh AH.

I got like 3 banks (ya 3 BANKS full) full of netherweave cloth I don't have time to make bags and sell. I'll be able to make more bags then you can (but I don't undercut much just one copper).