How do you figure out that first price for a product?

Determining an initial price often depends on the product itself, but emotional factors play a significant role in pricing strategy. Jason Fried explains that his company simply asks, "What's fair?" rather than conducting extensive research. There are pricing theories and "magic numbers" in marketing, but brands like Walmart use specific pricing patterns (like ending prices with .98 instead of .99) to signal value commitments to customers. The most important thing is putting some price on your product, even if it's too low initially. You can always raise prices later while grandfathering in early customers. Pricing decisions reflect your brand positioning and communicate value to customers - whether it's Amazon Prime choosing $79 instead of $99 because it "felt right," or Walmart's precise pricing to signal they're working hard to save customers money.