Here is an excellent article on pricing, published in Harvard Business Review some years ago (it is such a great article, I feel obligated to provide it to the HN crowd)...
http://www.amazon.com/gp/product/B00005RZ5D/ref=as_li_ss_tl?...
How Do You Know When the Price Is Right?
by Robert. J. Dolan
Published Sep 01, 1995