I also think underpricing models is disrepectful to himself. :)
When customers look through the marketplace, they expect to see certain models at certain prices. So when they see a model with a price that looks too low, they may wonder why the sellers is almost giving it away and if there's something wrong with it.
A price that's too low will have the same effect as a price that's too high: the price will be outside of the customer's expectations and they won't buy.