Comment by tashian
How should a company figure out what to charge for something in the first place? Especially a startup that doesn't have much market data to go on, and may be making something entirely new that no one quite knows the value of. When this is the case, one option is to do price discovery. And the way to do that is to remove prices from the website, take calls, learn about customers and their needs, and experiment.
> and may be making something entirely new that no one quite knows the value of.
How many such companies even exist at any given point in time? In software in particular, that's going to be almost none, and those few that are, won't be that for long. For everyone else, there are already competitors doing the same thing, and even more competitors solving the same problem in a different way[0], giving you data points for roughly what prices make sense. Between that and your costs being the lower bound, you almost certainly have something to work with.
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[0] - There's no "someone has to be the first" bootstrap paradox here. Even if you're lucky enough to genuinely be the first to market with something substantially new, it still is just an increment on some existing solution, and solves a variant of some existing problem, so there is data to go on.