I didn't make this up, but it is a good way to work out your price point and it can lead you to suitable markets.

How much do you want to make per month? Let's say $5000......and how many customers would you like to have? Well how about 12 a month?

That gives you a product price of at least $416.

Now all you have to do is find a market that is use to spending that kind of money on something they want.

You can play with the numbers, but remember that if you price low at the very begining, like $20 you're going to need 250 sales per month (compared with 12) to make the same $5000.

Just my 2 cents, I mean $200 worth ;>)