1) Research - What are the competitors doing? Can obviously give you an idea of starting point. 2) Test - Use Google AdWords and split test to a landing page t

1) Research - What are the competitors doing? Can obviously give you an idea of starting point. 2) Test - Use Google AdWords and split test to a landing page that advertises the service w/only difference being price point. eg - Write up a pair of ads with your value proposition and different price points, see % click through. You can't spend enough time on this step, very easy way to refine down to a good starting point. EG: Online Bookkeeping Service For just $19.97 a month get access to professional bookeepers. v Online Bookkeeping Service For just $29.97 a month get access to professional bookeepers. 3) Tweak - Google "Price Elasticity Testing". If you wind up charging more (or less) grandfather early users on the higher price, or move them over to the new lower price immediately. People reguarly leave this step out, but the difference between 24.97 vs. 29.97 may be the difference between exceptionally profitable and mediocre, 100% worth doing. Detailed refining is tough to do without scale but should be one of your first planned A/B tests. http://en.wikipedia.org/wiki/Price_elasticity_of_demand http://en.wikipedia.org/wiki/Price_elasticity_of_demand http://economics.about.com/cs/micfrohelp/a/priceelasticity.htm http://economics.about.com/cs/micfrohelp/a/priceelasticity.h... http://conversionvoodoo.com/blog/2010/06/one-simple-secret-from-an-1890-economist-nearly-doubles-website-profits/ http://conversionvoodoo.com/blog/2010/06/one-simple-secret-f...