Yes, that would make it hard to do business with prices like that.
Also in my opinion it "cheapens" the product somewhat. I reckon you guys need to get together and have a united front, with the same prices across the board.
People see motors going really cheap and think - geez, if he is selling it for that, what must he be paying for it. And the next thought for most people is, wow, if he is only paying X for it then it must be cheap cr-p. Not the sort of impression you want to be making for your product.
Most people think that if a product is a little more expensive then it is better. That is just the way the consumer thinks. Make it too cheap and those not in the know will just write it off as junk.
I don't know your market in the US, so I could be completely wrong, but I reckon from what I have heard on here and how these motors perform, you might be underselling them a little.
There is a fine line between being competitive in the market place and selling your product short. Food for thought