Joel on Software writes a great article about how to set the price for your software to maximize profits.
Joel does a good job of explaining and exploring the economic theories behind pricing and balancing supply and demand. He then dives into market segmentation and how it applies to pricing. Finally, he addresses the marketing elements of pricing and perceived value. He takes us on a fun journey with an enjoyable read, even if he doesn’t get to the conclusion we all need. The thoughts and analysis are still helpful when thinking about pricing your software.
For more actionable advice, and generally everything about pricing, check out the Dollars and Sense blog by Reuben Swartz. A lot of good stuff there! He has a categories on software pricing, pricing strategy, and a lot more.