The free market has a lot to do with who succeeds and who doesn't. Regardless of prices, offer a substandard product and word gets around. Also, America currently has a 38% Corporate tax - the highest in the world. Doing away with the corporate tax and adding a higher tax at the point of purchase would result in corporations lowering product costs. If they can't sell their product, they can't make money...supply and demand.
We're already double-taxed. We have our income tax and we have our sales tax (which differs state to state).
The FairTax is replacement, not reform. It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.