Kristine Kathryn Rusch has a great post on the importance of containing costs, especially early on. Remember, you are an entrepreneur running a business. If you want to pretend you're not, that won't change reality, it will just make it more likely you'll get ripped off.
And Lindsay Buroker has a great post on pricing. She takes a very useful perspective on it, which is to look at the possibilities of revenue-per-customer. So, if you only have one book out, and it's 99 cents, you can only possibly make 35 cents off each customer no matter what, whereas if you have a freebie followed by three books that are $5 a piece, you can make up to $10.50 off each customer. It's a very worthwhile way of evaluating your potential market, and of course it underscores the need to keep writing!