Okay...
I propose that, unless someone gives a better and more viable solution, that we use a combination of the two. I make the recommended minimum profit margin a minimum of 1,200 Neopoints and IF you choose to lower it from that mark you must manually go in and give proper logs on the quantity and value of all < 1k items in your shop at every given point in time you add/change stock in addition to the rest of your logs and screenshots that must be submitted.
Basically, should you choose to do the additional work then by all means feel free to handle the hassle of the reports.
Hopefully someone can think of a better solution for this tracking issue though.