You’re accidentally making the argument for public grocery stores. If a government-run market can provide food cheaper than private ones, and still pay workers and keep shelves stocked, that’s called efficiency. The goal isn’t to generate profit. It’s to make food accessible. That’s the point.
If your model only works when people are overcharged, then maybe your business has no place in a civilized society. We don’t run fire departments or libraries for profit either. You think every human need should come with a markup. That’s dystopian.