What factors determine the price of a new product?

Costs of manufacturing and distribution, along with the maker's desire to make a profit or increase market share. For example, a company may set an artificially low price for a product in order to dominate a particular market segment.

In addition, three relevant factors must be considered, industry standard (competitor pricing), cost, and perceived consumer value. Evaluation of your position in the marketplace will help determine your ability to sell a product at a price that will not be perceived as being too cheap, or expensive. The three of these perform like a three legged stool. If one leg is missing, the stool cannot stand on its own.