I recommend you do some A/B (or "Split") testing. Choose a sample of your audience and market the product at $0.99. Market the same product to another group at $5.

We expect that the lower price option will sell more, but we don't know until we experiment. In my experience, sometimes a lower price lowers the received value of the product in the mind of the consumer. If they expected to pay more of it, there is a chance that they will be leery of the lesser-priced item.

Additionally, if you market your product correctly, and enable the buyer to value the product more, you can surely charge the higher price.

Consider the price versus value of a bottle of water. If you have been stuck in the desert for a week with no water, what do you *value* the water? What is it worth to you? $1? $10? $100? Probably $100.

If you are floating in the middle of a large fresh water lake, what value is that same bottle? $1? $10? $100? Probably $0.

On a hot day after mowing the lawn? Probably $1.

Same bottle. Different value.

I hope this helps.
-Shaun

*I assume your product is not really $0.99 or $5; you can still apply this tactic.