Imo all pricing comes down to value, cost, and market.
Value (being how helpful is it to the customer) sets the upper bound.
Costs (what it costs you to run or make) sets the lower bound.
Though my product is a SaaS (https://dopplio.com) I think the process is similar:
We started with the price of alternatives solutions as well as competitors, and realized we could offer 1/10th the price of both while being sustainable.
So we started there and adjusted up a little as costs ended up being a bit higher than expected.
Just tried your product. It's brilliant. 10/10. Super easy to understand – just wish your explainer video actually used the product instead of being those cheap caricature videos :-)
Value (being how helpful is it to the customer) sets the upper bound.
Costs (what it costs you to run or make) sets the lower bound.
Though my product is a SaaS (https://dopplio.com) I think the process is similar:
We started with the price of alternatives solutions as well as competitors, and realized we could offer 1/10th the price of both while being sustainable.
So we started there and adjusted up a little as costs ended up being a bit higher than expected.