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I think this is a really good idea, other price monitoring sites have it.
But instead of a percentage I think it might better to say once the initial value has been met only notify after each 'x' amount of subsequent price drops.
So if the price started off at say $10 and dropped to $3 that would be a 70% drop. But if the price then dropped to $1.50 that would only be a further 15% drop. Alternatively where a price is already very low setting a percentage could still result in a lot of mails coming out.