Let's talk Pricing: How do you set prices for your products?

Hey IH,

Let's exchange experience around pricing.

Personally I start with what feels right to me (what I would personally pay for this product, considering competition). Then after getting some baseline I start testing with the 10-5-20 method that I learned about from one of y-combinator's videos.

It goes like this: Set a price that is 10X, that is a 10th of the value you are providing, increase prices by 5% incrementally, until you are losing 20% of the deals.

There is much more to pricing than this indeed, but I like to keep it simple when testing new ideas.

How do you approach pricing your products?