What you need to know before pricing your product

Before setting the price of a new product, MarketingExperiments.com advises us to "Weigh the advantage of selecting a price that generates slightly less initial revenue if that price also generates significantly more new customers. The average lifetime value of your customers and your ability to make additional sales to them will be the determining factors."

After conducting a price test for a new book, MarketingExperiments concluded that "the $24.95 price point generated the most revenue, but the $14 price point generated more orders."