Pricing is a tricky muse.
Charge too little, and people bucket you into a low-value, low-impact commodity. Price too high, and you exclude portions of your market. Charge too soon, you scare people away. Charge too late, you leave money on the table.
When you’re a ventured-backed startup, you can afford to make pricing mistakes. In fact, testing & mistaking quickly means learning & iterating quickly—a great thing.
When you’re a bootstrapped solo creative trying to make entrepreneurship your full-time, you don’t quite have the luxury to test super low price points—you need money coming in STAT.
But you can still learn from Startup Science to find the pricing that’s right for you.
In the service profession, the principles of pricing are as follows:
- Address the issue of money early
- Don’t solve problems before getting paid
- Charge a fair price based on the value the client receives
- Get a credit card on file so you’re not at the mercy of the client‘s financial dept.
- Rethink what it means to “sell,” but don’t be afraid to SELL.
In startups, the principles of pricing are somewhat similar:
- Pick a price point to test
- Charge based on value derived (optionally, offer a free tier, e.g. Notion offers “your first 1,000 blocks free”)
- Recruit your first customers manually and don’t be afraid to SELL.
- Conduct pricing interviews to validate or update your price point
You can see the many overlaps.
How are you pricing your worth?