I put items in higher at what they will sell for. There are two reasons.
First, I know someone is going to try and talk me down. In starting higher to begin with, I end up with something reasonable for me
Second- There is a psychological effect about things listed too cheap. When an item seems much cheaper than it should be, the majority of people tend to pass it over thinking something is wrong.
People also have a tendency to believe that the more expensive something is, the better the quality- although not true