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I'm not a customizer, but I know that most artists base their prices on the cost of the pony, supplies (like paint, hair, etc.), and the time and rigor it took to make that pony. Really, a custom is a work of art, and therefore the artist really has the right to sell it for however much they feel they should sell it for. That's how I see it, anyway. Then again, I don't make customs so perhaps someone that does can shed a little bit more light on the subject.
Don't buy customs with the expectation they will sell for the same amount or more if you sell them later, though.
This custom was usually made by the member Angelus from the old arena. I don't know if he's a member here again. at the time he was one of the best customisers and quit the business from my knowledge. He did a bunch of different Rapunzel customs i.e. the blue one you see in the auction but he did a purple one too. I do Rapunzel customs too since a few years. You can see them here http://customsbypandabear.deviantart.com/gallery/29867881As I know that this is a high quality custom, 50$ isn't too much for this custom considering that the original is at about 500$. I ask myself 50$ for a Rapunzel too, because the work that goes in her is very intense considering especially the rehairing job and the rehairing time. So a starting price of 50$ is fair for this custom.
I will definitely be bidding, as I had passed up on one years ago and have always regretted it.