Pricing your product usually involves considering certain key factors, including pinpointing your target customer, tracking how much competitors are charging, and understanding the relationship between quality and price. The good news is you have a great deal of flexibility in how you set your prices. That's also the bad news.
"What's the difference between an $8,000 Rolex and a $40 Seiko watch? The Seiko is a better time piece. It's far more accurate". The difference is your ability to sell."
There are two main pitfalls you can encounter - under pricing and over pricing.

OSE Notes

Price point needs to cover costs according to a set budget goal, and allow for growth
Above that point, everything is negotiable and subject to reevaluation at all times
Offer different pricing options. As at an auction, different people buy at different prices.
Extra features may be chosen at higher cost
Consider opportunity cost

Pricing Products