The 95th percentile algorithm is an interesting study around this.

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I see. So it's basically a market-driven price. Charge whatever the 95th percentile will pay?

Huh?

Where are you doing your research?

No. You need to take peak demand into capacity management.

You are not planning for average use, but peak usage which can be mitigated in many ways.

Try to separate corporate decisions about profit from technical ones.

Once you understand capacity management, then you decide how much profit you want to make.