It's nearly impossible to have a meaningful pricing discussion, because initial pricing is guessing. But it does feel like you may be leaving money on the table.
You (should) know your market better than anyone else, but be careful on competing with price. Competing with price is sometimes a crutch for actual marketing and a wishful shortcut in demonstration of value. Because, as mostly hackers, generally speaking we aren't great at marketing. And so, subconciously IMO what happens is we think "i'll let someone else market the idea with their higher price product, and then i'll swoop in with the cheaper offering".
Unfortunately, it doesn't work out that storybook. Markets aren't that transparent, and there is always an asymmetry in information. You're going to have to demonstrate real value and claw your way into relevance. So initially you will have to do a lot of "hand-to-hand combat" style marketing. And find key differentiators you can lead with that isn't price.
How about pricing it at $49 and then running a promo for initial new users? First 100 customers get it at $19?
As an aside, I spent $79 on Balsamiq last year. I think that is the most I've spent on software in the last two years (I stick with mostly open source / freeware). But it was a no-brainer for me... their marketing materials convinced me that the ROI was there. The value for me was probably much higher, but past $99 you enter some psychological pricing barriers.
You (should) know your market better than anyone else, but be careful on competing with price. Competing with price is sometimes a crutch for actual marketing and a wishful shortcut in demonstration of value. Because, as mostly hackers, generally speaking we aren't great at marketing. And so, subconciously IMO what happens is we think "i'll let someone else market the idea with their higher price product, and then i'll swoop in with the cheaper offering".
Unfortunately, it doesn't work out that storybook. Markets aren't that transparent, and there is always an asymmetry in information. You're going to have to demonstrate real value and claw your way into relevance. So initially you will have to do a lot of "hand-to-hand combat" style marketing. And find key differentiators you can lead with that isn't price.
How about pricing it at $49 and then running a promo for initial new users? First 100 customers get it at $19?
As an aside, I spent $79 on Balsamiq last year. I think that is the most I've spent on software in the last two years (I stick with mostly open source / freeware). But it was a no-brainer for me... their marketing materials convinced me that the ROI was there. The value for me was probably much higher, but past $99 you enter some psychological pricing barriers.