One of the first steps when it comes to developing a new product or service is deciding on the price. As you already know, the price can be a very fluctuating factor, and it will depend on many parameters. But, when a company says that they want to set the right pricing strategy, what they actually mean is that they are on the hunt for a price that sells. The logical question is: how to find it?
First of all, you need to consider your production costs, which include the cost of production itself , as well as promoting the product. For example, say it costs you $10 to produce a product and $5 to advertise it. Conclusion: You cannot charge less than $15 for this product. How much more is up to you.
Many different factors can come into play here, but the most basic ones are investor expectations and purchasing power. Moreover, purchasing power and demand may change over time. Will customers have the desire and the money to buy your product? Everything will be individual here, depending on what you sell, what your market is, what your target audience is, and so on.