$5/month is sort of the worst spot. I'd pay $1/month for some things (budgeting tools) and $20/month for say, chatgpt. And I paid $5 lifetime (life being ~5 years) for a resume tool once.

These days AI will probably build most of the things you'd charge a tiny fee for. $5/month is kind of the rate of a battle pass for a MMO, not quite a "small tool".

But you are then also the kind of customer that nobody wants. It's not worth doing business with people who want to pay less than $10 per month for a service. Those are problem customers always, so it's better to price them out.

$1/month might be a bit shit because of transaction fees unless you charge per-year instead.