When you're pricing an item, the current listed price for that item is not the only resource. There is also the sale history, which I find to be a far more reliable gauge of the item's value.

For example. Today I was putting some items on the market that my retainer brought back. I noticed that only 3 of the item were on the market for around 34k, with one at 50k. Generally if there are that few on the market I'll look at the sale history to make sure these just weren't the only overpriced items that hadn't sold yet (especially if there is a wide price disparity). I did so, and found that nearly every single copy of the item that sold in the past month sold for under 17k. So I put my item up for 18k because I actually wanted to sell it, not just have it sit on the market at 2-3x as expensive as the items that are actually selling.

If people are consistently undercutting you by 40-50%, maybe you're overvaluing your product just a tad.