How much should I pay for this domain?

I found the perfect domain name for my startup idea. But, how do I know how much to pay for it? It's currently at auction on GoDaddy, and the auction ends Oct 11. The owner is asking $60, but I don't know what other people have already offered for it. I want to snatch this domain, so if someone with more experience with the domain name market could give me a ball-park idea for what to bid, that would be much appreciated.

I'm not going to give the domain, because I fear for competition. But I'll say this. It's a 5 letter .net domain; it's one English word and the word is ranked in the 200 as for English word popularity.

Don't think about it as an immediate cost. The domain name (and thus often product or company name) is an investment for the whole life of your product/company. Small example: If you imagine the life cycle of 5 years for your product, the difference between eg. $60 and $260 is of $40 per year. It means $3.50 per month during the whole product life cycle.

On the other hand, put into the balance the value that this domain name can bring you (compared to other, less appropriate name) as benefit during these 5 years. If it is at least an "usual size" business, the $3.50/month is nothing... One BigMac per month...

It is obvious that startups have to pay attention at the costs, especially at the beginning. And especially if it's a bootstrapping from your own financial means but don't forget to see it in long term and try to estimate what it can bring you. PS: Btw the .NET domains are MUCH cheaper than the .COM domains. Just go to some domain market places like Sedo and have a look at the prices over there (but again, these prices are what the owners ask for and it is often very overvalued). Try to find domain names similar to the one you want to buy and you will see...