You are in charge of pricing for an immersive AR/VR experience type offering. How would you price it?

Before we get into solutioning, I'd like to create a framework to build on which will help me as I think through the answer:
1. Clarifying Questions
2. Goals
3. Users
4. Pricing Strategy
5. Recommendations and Strategy

Clarifying Questions:
1. What do you mean by 'experience' here? - Is it a wearable? an app? or some entertainment offering like a local business that allows customers to check out the latest in AR/VR for a fee? - Assume wearable.

2. I'm going to assume that we are looking to price this only for the US market to begin with - Is that ok? - Sounds good.

3. Is this a brand new offering or are there competitors in the space? - Assume that there are competitors with similar offerings in the marketplace.

4. What is the USP of the product that makes it different in the market compared to competition? - Assume that we are comparable.

5. What is the goal here? - Are we looking to penetrate the market or are we looking to increase the revenue? - Assume market penetration.

6. Any other constraints that I should know about? - No

Goals:
We already discussed that the key goal here is 'Market penetration' - This means, we are trying to enter the market with an offering for the first time and we are trying to take market share from competition.

Users:
There are two classes of users here:
1. Business users - local arcade owners, entertainment companies, them parks, museums etc.
2. End customers (retail) - AR/VR Enthusiasts, Tech enthusiasts, high net worth individuals who can afford these high priced offerings, gaming enthusiasts, collectors etc.

Let's keep the end customers in mind as we think through pricing options.

Pricing Strategy:
Now, before we can think of pricing strategy, let;s first review the offering. This will help us understand the way we want to price it.

- AR/VR headsets are generally expensive and afforded to a niche market set. - This is not a commodity that can be easily afforded by the masses.
- Customers are more interested in the feature offerings and are often not swayed by a few dollars difference in pricing - Unless the pricing between competitive products is significant.

Now that we understand the market, there are 2 options we can consider for pricing:
1. Cost based pricing - This is where we price the product based on covering the cost that it took to make the product.
2. Value based pricing -This is where we price the product based on the perceived value that it brings to the consumers.

Generally, for this type of niche applications, it makes sense to go with Value based pricing.

Now that we have decided this, let's think through some pricing options we have. The options here should make sense when we think about the goal of market penetration:
1. Low upfront cost with monthly subscription fees
2, Tiered pricing based on features
3. Feature driven pricing - Low upfront device cost with cost to download and use features on the product.
4. [Potentially] - To enhance our chances in the market, we can maybe think of 'leasing' - similar to cars where customers can lease the product until it covers the cost of the device