eBay sellers are often frustrated when they have "watchers" on an item yet they don't take action and actually buy an item. There are many reasons why buyers might be watching an item, which include:
Another seller offering the same item watching the competition
A buyer bookmarking the item to return to it later
A buyer comparing prices on several different listings
A buyer treating a watch list as a wish list
A buyer bookmarking the item until he has the money to purchase it (perhaps on payday)
Several watchers on an item and no bids is not necessarily a bad thing. Unfortunately, sellers can't see who is watching an item and cannot contact the buyer to ask any questions. Many times, a frustrated seller who has an item with multiple watchers will drop the price waiting for a buyer to make a move. This is not a very effective tactic since the buyer sees the seller dropping the price, he may wait for the seller to drop it further. Lowering the price only encourages them to keep watching.
Try the opposite - raising the price. That's correct, raise the price rather than lower it. A lower price may not entice the buyer to take action, but a higher price may. The buyer may assume the seller could continue to raise the price and he should act fast. (The same is true when gasoline prices rise - customers often rush out to fill their tanks before the price goes any higher.)
Try this strategy on some listings that have watchers and see if raising the price doesn't help spur the buyer into action.