To begin with, it's not very expensive and I get 75% commission. If I wanted to undercut them, it would be very cheap and most affiliates wouldn't want to sell it for less than 100% anyway.
Plus, TBH, It's very good and I can't compete with their writing style. In the interest of giving the best to my list, they would have more benefit with the other product.
I was thinking about tackling by creating a smaller product (ie. a freebie) in order to get their email.
I'd then offer the competitors product, them make my own upsells and downsells for my backend.
Plus have a much better site/blog, so they all come back again and again.
Does that sound OK? At least till I can afford to have a great product made.