I wouldn't worry too much about people thinking the price is too cheap. I'd wonder how many of those people paying $2.95/month would also be willing to pay $9.95/month, $19.95/month, etc.
Very good point, thank you. Yes, I'll definitely be testing the pricing, but since it's a new service I'm trying to avoid people not subscribing for silly reasons like "it's too cheap" or something.