All prices are based on revenue curve determined by Supply & Demand. If you offer your product or service at too low a price, you are giving it away. Raise the price as long as you are making more money.
However at a certain point you start losing revenue due to approaching your demand limit.
When the loss of revenue for people not buying, starts to exceed the added revenue from the higher price, you have reached the top of your revenue curve. That’s where you set your price.
That’s all there is to it.