Irwin's on the right track.
Overall, I suggest what you want it not the highest price the market will bear, but the optimum price, i.e., one that gives you the best long term benefit. Sometimes, that's a premium to the competition, e.g., where you have a superior product. Other times, it's a discount to the competition, e.g., where you have a competitive cost advantage. Some companies introduce high, snag the first adopters, then lower prices as volumes increase and costs come down, gaining market share along the way.
Competitive analysis, focus groups, and the like might help, as would someone with significant marketing expertise in your specific category.