I see alot of asking prices these days that aren't even close to being reflective of the present market. If the seller can start substantially off the mark, there's no reason the buyer can't do the same. And taking it personally is just stupid. It's not like someone is telling you that you have ugly children. You're selling an object- it's business.
I've found the best way to negotiate is with information. If you have strong, solid and credible listing and sales data on similar items, it's much easier to estabilsh credibility for your pricing or your offer.