Your goal in pricing your product is to find the price that brings the most revenue.
Perhaps you might price your eBook low because you sell more copies that way.
Maybe you raise the price a bit higher, sell fewer copies, but still make a greater profit.
So how do you find the happy medium? Welcome to price testing.
Price testing just means that you set several prices and see which price gets the best results.
If you are not happy with the results, change the price and check the results later on.
You keep doing this until you find the price that brings in the most profit.
The best way to price test is to create several identical sales pages - the only difference should be the price.
Once you have created these sales pages, you want to drive identical traffic to each of the pages and see which one gets the best results.
There are free tools available that will randomly send your visitors to the different sales pages.
This keeps you from testing one page for a month and then testing another page for a month and comparing the results.
These tools allow you to gather information a little at a time.
Be sure to give yourself enough time to get a large enough sample of data before you make a decision! In some cases, you may raise the price and get a higher profit, but you keep the price low because you want more people to buy your product.
Reasons for doing this is that you are more interested in growing your customer base or you have upsale items that sell very well that increase your profit considerably.
There are all kinds of factors that go into setting your price.
You can make educated guesses, but the best way to find the most profitable price is through a bit of research and examination.