Pricing is one of the hardest things in every founder’s journey. A particular price attracts one kind of customers and shoos away others.

Why are we complicating it?

  • We may not know the unit to price. We go wrong with the unit – we price the wrong thing.
  • We think we know our costs. As costs shoot up – our pricing can look weak to ourselves.
  • We want to make and X profits per sale. This conflicts with what customers are willing to pay for it.
  • We want to scale and want to fend competition. This drives the price down and we make the eco-system fail.

The right way to get the pricing is to do it

  • without fear – knowing you will go wrong with it
  • and then learn very quickly from it
  • and adapt as you get feedback from customers

What customers need in pricing?

  • Simplicity
  • If they don’t understand the unit of pricing and it connects to them – they don’t pay for it.
  • Even if they love using your product or service.