How do you set up pricing policy?

Pricing policy as a part of the 4P rule (product, price, place, promotion) is definitely one of the most important decision when it comes not only to customer acquisition and retention but is also a vital part of sustainable business. After all, even a hobby side project will require cost coverage sooner or later.

What is your approach to pricing? How many times you already changed your prices to fit the market expectations? Have you performed any research on this with your prospective customers and how?

Share your experience with other makers and help them build amazing products which sell.