how does ebay figure out the suggested ad rate for promoted items

listing items I find the suggested ad rate is always different per listing.  how does ebay figure out the suggested ad rates. 

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In theory one of your competitors in that category is paying that max percentage your seeing, on mine it fluctuates constantly from 3% to 15%. For a more competitive category  those numbers might be higher, for a less competitive category lower.  Personally I refuse to pay more than 3% and my sales are acceptable.. might be 5% in a more competitive category. I think there are promo seller rebates for stores, so you get some of it back.. but dont quote me on that.