Setting a product price is like balancing a check book; going too high will miss out on some variable sales, or going too low, you might miss the revenue. To set the best product price, a product manager considers multiple factors;  Evaluate various costings like production, packaging, marketing, etc.  Know your audience because they are the product user, and how much value they have associated with the product and how much they will use it. Study, and compare the past product pricing to know what does not work for the product.  Lastly, don't overlook the competitor's price, as it will help you set the product's value and price.