How makers stay productive

It's complicated and it depends. There is no right way or wrong way to try and price your offering.

Basically for me, it comes down to the fact I am already in a market that exists I know what my competitors are charging for their products. I also know that my target market has money to spend and value their time.

So you price in and around your competitors, you can be a bit higher if you are offering more value, or a bit lower, but you should peg your pricing around the same as your competitors. Of course, if you have no competitors, then you have a whole other problem on your hands.

Then I have to look at what I would need to charge to actually build a business from it. If I have 10 users, 100 users is that going to be making enough money to build a business?

Best of luck.

Josh, if you are just starting, in my experience it doesn't matter. What matters is that you listen and change pricing based on the data sets every other month. That's how I tested price elasticity at LeadDelta.

Some of the factors to factor in:

• Market: look at complementary products
• Players: look at the competition
• Category: Productivity? ($10/mo) or a hard problem? ($99/mo)
• ICPs: Who do you serve? Solopreneurs or C-Suite? Teams or individuals?
• You can always run a test: what's cheap, what's expensive, what's normal… and extrapolate

For us, pricing is basically derived from the median of top-down and bottom-up;

• Competitors who provide similar customer values and their pricing
• Survey (how much would you pay if we solve your problem?)

Another big factor is your strategy;

• Users first
• Money first

It took us few months to determine a new price model.