Pricing is more art than science. It is based on many factors such as: - perceived value - competitor pricing - your target market - how directly your servi

Pricing is more art than science. It is based on many factors such as: - perceived value - competitor pricing - your target market - how directly your service let's people save mone or generate income (ie if your service does either it is more easily justifiable than a pure luxury) - customer loyalty (eg some people are paying Dropbox when they don't need the space just because they love the service and want to support the company) - supply (including the illusion of scarcity) - cost structure - luck - etc There is some theory and psychology around this but like all the social sciencesnit isn't exact.