Pricing

Pricing is both an art and a science - one of the most crucial yet challenging decisions for any startup. While many entrepreneurs fear setting prices too high, underpricing can be equally damaging, signaling low value and leaving crucial revenue on the table.

Guess The Price

The worst you can do to validate a startup idea is to ask "How much would you pay for that"

People will always low-ball you, it's in their interest to make you think they wouldn't pay a lot

Instead, tell them they'll get a 30% discount if they guess the price.

By doing that people have an incentive to not lie and you can immediately see how valuable they perceive your product

@nico_jeannen https://x.com/nico_jeannen/status/1811740124704833981

Middle Out

Want to test your pricing strategy?

Create three tiers that offer similar value, but with some extras thrown in.

If the middle option is the most popular, keep raising prices until the first tier becomes more popular. Then, roll it back once so the middle tier regains popularity.

Congratulations, you've found your perfect price point!

@dannypostmaa https://x.com/dannypostmaa/status/1664438300625756160

Up, Up, Up

Keep increasing pricing until your customers are begging for a discount.

A successful industrialist I met