The wider your price range, the more customers you'll attract. Lower-priced items can be good way to introduce new customers to your product. Then, as their incomes grow, so will their purchases. Note, too, that a higher price often gives the impression that something is more valuable and therefore more desirable, so don't under price by default. There are certain key price points in every merchandise line. Be sensitive to your industry--and your customer.
Excerpted from 303 Marketing Tips: Guaranteed To Boost Your Business