The second element in setting the prices is to look at what your competition is doing. Visit their showroom, call them and find out what they are charging. There is nothing wrong with checking out your competitors. A third element in setting prices is to sell the product on a trial basis at several locations at different prices and gauge customer reaction. Obviously, you will need to make sure that the locations are fairly equal to avoid any bias in this type of analysis.
Many businesses try to keep prices low in order to attract and retain customers.
This is especially true of service industries. For example, a new carpet cleaning business we were helping offered low prices in order to attract new business. However, this is a very short-run method and attracts customers who are only interested in low prices. They will switch to the next business that offers a lower price. I recommended to this firm that they advertise on the quality and diversity of the services they offered.