Your first price will be wrong, and that's fine. What matters is that you charge from the start, so you learn what customers value. Underpricing is the more common mistake: it attracts the wrong customers and makes the business harder to fund.
Three ways to anchor a price
- 1ValueHow much money or time do you save or earn for the customer? A price of 10–20% of that value usually feels fair.
- 2AlternativesWhat do they pay today for the workaround, tool or agency you replace?
- 3CostsWhat does it cost you to deliver? This sets the floor, not the price.
Practical tips
- Start with one or two plans. Too many options slow down the decision.
- Charge per something the customer understands: per user, per location, per order.
- Offer yearly payment with a discount: it helps your cash flow.
- Price for businesses is often 5–10× what founders first think.
- Write down why you chose the price, so you can review it with data later.
Test and raise
- Does almost everyone say yes without hesitating? You're probably too cheap.
- Do some people say it's too expensive, but most still buy? You're close.
- Does nobody buy? Check the value and the customer before cutting the price.
- Can you raise the price for new customers while keeping existing ones on the old price?
It's easier to give a founding-customer discount from a higher price than to raise a low price later.