Rafi Mohammed has some thoughts on pricing for small firms. An excerpt:
Pricing is about the value that the product offers relative to the next best alternative. If potential customers are using a rival's product, you need to justify why they should use yours. "Sure we offer fewer attributes, but we're cheaper." Or, "Gee, for only 15 percent more, you get all these attributes." When consumers buy a product, they're in essence saying, "I looked around at all of your alternatives, and you offered me the best value."