Do you build something brand new, or a better version of what already exists?

Most of what I build is a better version of something that already exists. My company is 22 years old, and the pattern has barely changed:

・Start from a tool that I or a client already use and aren't happy with

・Make it better, and price it a little below the competition

・Never raise the price. I haven't once

That's how we've survived this long.

A product with no market yet is a different story. I think pricing it is really hard, because there is nothing to compare against.

So I'm curious:

・Are you building something brand new, or a better version of what is out there?

・If it is brand new, how did you decide on the price?