App Pricing Strategies

Setting a price on a new app can be tricky. The higher the price you set for an app, the more challenging it becomes for you to clearly prove to prospective users that it's more valuable to them. Free apps may not make money through downloads, but if they're used for placing purchase orders, or if merchandise related to your app is available, it can be monetized that way. Maybe your app supplies so much new information for your users on a regular basis, a subscription method is justified. There are so many ways to price an app—keeping both your return on investment (ROI) and your customers' satisfaction in mind—the possibilities are almost endless.
This discussion thread is for anything that has to do with app pricing. What factors do you consider make an app more valuable? Have you ever come across an app that you felt was overpriced, or perhaps under-priced, for what it delivered? Share your app pricing stories, comments and strategies with your fellow members here.