How Your Startup Leaves Money On the Table

Quick-hit advice on maximizing your pricing

image by diller

If I had to guess, I’d say your startup is probably selling your product for less than it’s actually worth. I know this because it happens all the time.

It happens to me.

The truth is that most startups do pricing wrong, and they almost always err on the side of underpricing. It’s a common mistake made in the name of customer acquisition. It can seem a noble strategy, even clever, but it almost always catches up to the company in a sneaky way that they don’t realize until it’s too late.

I’m going to be honest with you. You’ve probably been taught to underprice your product. You’ve been told that underpricing is an age-old startup trick: Grab handfuls of market share first, then worry about profits later.

But just because advice is age-old doesn’t mean it’s accurate. You’re likely leaving money on the table.

Pricing is Painful

You’re not alone if you find the pricing process difficult. I hate it too, and I hate it because — just like they say — it actually is throwing darts at a dartboard.

What they don’t tell you is that you must hit the bullseye with those darts. Every time. If you price too high, your startup…