Competitor-Based Pricing is a method that utilizes competitor prices as a benchmark. You can use competitor-based pricing to adjust the cost-based price. Basically, you should look at the prices of similar products / plugins to decide your own price point.
Simple, easy to use
Lack of your own pricing strategy that would take into consideration the peculiarities of your business
It might be close to what the market can reasonably sustain
There is a risk of price wars (especially when supply exceeds demand)
To estimate the competitor-based price, consider the following questions:
Who are my competitors?
Do they propose similar products / plugins?
Do they offer more or fewer features?
How do competitors price their products / plugins?
How does the cost-based price for my product / plugin compare with the competitors’ offers?