How would you determine the optimal price point for a subscription-based software service?

First, I would conduct a thorough cost analysis to understand the minimum price point required to sustainably offer the service. This includes both fixed costs (e.g., salaries, R&D, and server costs) and variable costs (e.g., support per additional user). It’s crucial to have a clear baseline to ensure the price covers the business costs and maintains a healthy margin. Second, assessing customer perceived value is key. This involves market research to gather qualitative and quantitative data on how potential users perceive the value of our software service, compared to the existing alternatives...