"Pricing for physical goods is simple. For example, if you are manufacturing staplers, all you need to do is to calculate cost of production and distribution, slam 20% margin on it and there you have the price you can sell your shiny stapler machines for."

Not true. In fact, a lot of Maker businesses get hung up here. The pricing of physical goods depends on the market every bit as much as the pricing of software or web services. In fact, large companies rely on that all the time--case in point is P&Gs Swiffer Sweeper, that they charge much more than the manufacturing cost for the sweeper and for the refills.

Many small business owners I've run across actually feel guilty if they charge "too much" (say 100% markup) for their physical goods they are selling, even though their competitors sell at that price. The price elasticity of demand applies just as much for physical goods as it does for non-physical.