How to decide pricing for the product

Just came across this topic today while reading 'Zero to Sold' by @arvidkahl . There's so much more but the core idea in my words as below: I think the main idea, regardless of Single payment or subscription is: The return customer gets from using your app must be higher than what they pay (Example given at bottom). It could be based on monetary value (if you can calculate), or how much time will they save that will allow customers to focus on their core, revenue-generating activity. Eg: Feedbackpanda started out estimating it helps online teacher save a few hours per month by simplifying completing student feedback (to get paid). Most teachers would usually prefer to use the time to teach more students if given a choice (which mean this is a bottleneck to them being more productive). So Arvid priced feedbackpanda at if the customer (online teacher) could just teach 1 more hour per month, that pay they would get for that hour is the pricing they started out.

Actually, a couple of YC founders have publicly said they simply picked a somewhat random pricing, and then kept increasing it until users churned. Might be a framework to consider?