How Do You Properly Value and Price a New Project?

Check what other businesses are spending on similar solutions. For example, if a comparable tool costs around $100k, but you can create a $1k/year alternative, that's a win for anyone looking to save money. Also, think about the potential to boost revenue for companies using your tool—could it help them increase earnings significantly? A project’s worth can often be found in how much it saves or generates for users.

As a company, our evaluation looks at time and money saved. If your project improves efficiency or cuts costs, it inherently holds value. Start by setting prices based on the potential impact on users rather than just the effort you put in, and adjust based on feedback as you launch.

Get an estimate from a development agency to gauge the project cost, then factor in expenses like hosting and support. Set your pricing as a subscription model per user, ensuring the ROI aligns with your financial goals.

One way to start is by estimating the time you'll spend on this project, then double that estimate because you might be underestimating! From there, figure out what your daily rate should be based on your skills and market rates.

Remember that customers generally prefer discounts over price increases, so consider starting with a higher price point. If someone bites at that price, you know you’re on the right track!