Underprice
Most startups charge too little. They are afraid of scaring customers away.
Low prices attract bargain hunters who churn fast and complain more.
Premium prices attract serious customers who value what you build.
The concept that opened up how to think about pricing is the pricing thermometer.
Discounting
Every discount trains customers to wait for the next one.
Once you discount, you can never charge full price again.
Just set the right price and hold it.
Charge From Day One
Free users give you bad feedback. They will say anything to keep it free.
Paying users give you real feedback. They tell you what is actually broken.
Charge from day one. Even if it is $1. The signal is worth more than the money.
If nobody has complained about your price, it is too low.
Raise Prices
If nobody has ever pushed back on your price, you are leaving money on the table.
Raise prices. Keep raising until you lose a deal. That is the ceiling.
Most founders never find the ceiling because they never try.