How do you set prices?

Question

I'm curious how do you set prices for your products. I plan to launch my very first thing soon, my costs are very small and I don't know what number per month would be good. How should I think about it? What consider?

What's your take on that?

Dominik Ilnicki · Accepted Answer

@imthath_m Thank you for that comment and pointing a really great read from marketing examples!

Ben · Answer

I think pricing decisions should be based on a combination of different things in my opinion:

1. Your product/business cost (server, team, premises)
2. The value you can add to customers
3. Your competitor's pricing
4. Stage of production on your roadmap (is it polished or still in need of lots of features?)

Try to understand where your tool can save time/money for the customer.

If a tool is going to cost me $100 per month, but I can clearly see how it is going to save me 40 hours per month or reduce my costs by $10,000, I can justify the price.

It all depends I suppose on your product and the value it brings to the customer.

Tarek Dajani · Answer

A mix between the value of your product and competitors pricing. However, if your product is better I think you should have atleast the same price at the beginning.

Bill Flitter · Answer

Patrick Campbell is an expert in pricing strategy for SaaS. This video should be helpful: https://www.youtube.com/watch?v=z6kbZ4WJMwQ

Bohdan Romaniuk · Answer

check Coda.Io pricing, its can help you a little

Johan Bavaud · Answer

There is already a lot of good information in the other comments.

I would just add the notion of "perceived value" here.

If you are lucky enough to have contact with trial users, ask them directly, you will be surprised. 😊

HR365 · Answer

First thing we have to consider what is the cost of production, next marketing price then we have to add our profit percentage on that... We have to add these three elements to fix the price

How do you set prices?

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