Have to agree that pricing items too cheaply is not a good idea. It gives the impression that you don't consider the item worth very much and that is not a good look.

I used to occasionally start very popular items at 99c (when it cost a lot less, no free listings) as it was almost guaranteed that they would take off like a rocket but that is no longer the case and competition is so high now that you are quite likely to sell for 99c if that is what you start at.