I would start higher. you paid 1.50. if it sells for ten, ebay takes a dollar (ten percent). Paypal takes 30 cents per transaction plus 2.9%. so thats like another 50 cents. so your cost is at three thus far.
Now shipping... Average is between 8 to 10 ounces, and depending on your ebay shipping discount, 8 ounce costs me 2.59, and ten ounce is like 2.97. but if you dont have the discount, then its like 50 cents more or so.
So 3 bucks plus 3.50 (worst case) puts you at making just 3.50... Not a big enough payout to make this worth it.
I played with mine a bit, settling on 11 starting bid, 14.50 BIN plus 5 shipping (i was sending a priority flat rate envelope). This was good for a bit, then people were asking if I could do better on the shipping costs. So, I switched to shipping first class using poly mailing bags for free, but raised my prices to 15/20. Been working thus far. Some people hit the BIN, others let it ride at 15.
However, I did recently reduce the prices on stuff I have had since the first third of the year, to 13/17, with free shipping. Been doing ok with that as well.
One reason I like shipping Priority is the better service level (less lost stuff), but also because the materials - boxes, padded envelopes, everything - are free. Where are you able to get free poly mailing bags for first class parcel shipping? Does the USPS also offer those supplies for free? Thanks for the info.