I gotta be honest, when I first saw 'regular' ebay auctions that also had the make an offer button, I read it as "My price is obviously too high, so make an offer that's lower than the starting bid." I never saw it as a way to get a higher price than said opening bid. The offers I made were soundly rejected. Ha ha. Oh well.
Are you willing to relist the item again? If so, politely reject his offer and say you would really like to get an offer closer to your target amount. Perhaps that would spur him to at least offer a bit more? Worth a shot probably.
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