When launching a new product, I find that my team and I get nervous when trying to decide what sort of price tag to put on it. Just for the sake of example, we have no access to any sort of funding; we develop Wordpress Plugins and miscellaneous scripts in the internet marketing niche.
Some things we've tried to take into consideration are the following:
- How long did it take to develop said product
- Approximately how many customers do we expect to have (estimated through market/niche research and different advertising mediums)
- The cost of similar products in a particular niche
- How much risk we're willing to take
- What does our "gut feeling" says
Is there a formal model that has been developed already?