To determine pricing, explore how your target customers pay for similar software products, whether it's a flat fee, per usage, or other structures, and align your pricing strategy accordingly.

Pricing isn't just a number; it's a strategy that should evolve as your business grows, allowing for flexibility and adaptation to avoid common mistakes.

Evaluate the length of your sales cycle to determine if your pricing is correct; ensure that it is getting shorter over time as you refine your approach.

Discuss your pricing strategy and how you determined your price points, including customer segments willing to pay different amounts.

Expect your pricing strategy to evolve over time, typically every year or so, as you gather more data about your customers and market.

Pricing strategy should focus on delivering value to customers, pushing the company to improve continuously rather than adopting a low-cost model that may compromise long-term viability.

Simplify and scale with tiered pricing; avoid having too many tiers to prevent confusion and ensure that your pricing aligns with your ideal customer profile.

It's essential to communicate to the team what you're willing to overpay for and why, ensuring that everyone understands the short-term nature of such decisions.

When setting pricing, it's important to guess a number that seems reasonable, and if you can close that sale, try doubling it the next time. Iterating based on feedback is key to finding the right price.