How should I set my initial price?

Start with value-based pricing: what is the problem worth to your buyer? If your product saves them $100K/year, pricing at $10K is a no-brainer. Then test it—run pricing conversations with real prospects and adjust based on their reactions.

How do I know if my price is right?

If you never hear 'that's expensive,' you're probably too cheap. If you hear it on every call, you're either too expensive or not demonstrating value. The sweet spot: some pushback, but deals close anyway because the value is clear.

When should I raise prices?

When your close rate is very high (above 40%), when you're booked out, or when you've added significant value to the product. Test increases on new customers first. Existing customers are more sensitive—give them advance notice.

How do I prove the value of my product?

Case studies with specific numbers: 'Company X reduced time-to-hire by 40%' or 'Customer Y saved $50K/month.' If you don't have numbers yet, collect them from your next 3 customers. Anecdotes are forgettable; data is convincing.

Pricing

Is your pricing aligned with value?

Pricing signals value. Price too low and buyers assume the product is cheap. Price too high without proof of value and you lose deals to skepticism. The best pricing is tied to the value you deliver, not your costs or what competitors charge.

Answer 3 diagnostic questions to see where you stand.

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What this measures

How did you set your current price?
Do buyers push back on price?
Can you prove the value your product delivers?

What to do about it

If this area is broken

Run 5 pricing conversations. Ask what they expected to pay before you quote.

If this area needs work

Test a 20% price increase on new deals. Track close rate impact.

How this connects

Depends on

Problems here often trace back to gaps in:

Affects

Fixing this can unlock progress in:

Retention

Frequently asked questions about pricing

How should I set my initial price?: Start with value-based pricing: what is the problem worth to your buyer? If your product saves them $100K/year, pricing at $10K is a no-brainer. Then test it—run pricing conversations with real prospects and adjust based on their reactions.
How do I know if my price is right?: If you never hear 'that's expensive,' you're probably too cheap. If you hear it on every call, you're either too expensive or not demonstrating value. The sweet spot: some pushback, but deals close anyway because the value is clear.
When should I raise prices?: When your close rate is very high (above 40%), when you're booked out, or when you've added significant value to the product. Test increases on new customers first. Existing customers are more sensitive—give them advance notice.
How do I prove the value of my product?: Case studies with specific numbers: 'Company X reduced time-to-hire by 40%' or 'Customer Y saved $50K/month.' If you don't have numbers yet, collect them from your next 3 customers. Anecdotes are forgettable; data is convincing.

Find out where you stand Or take the full diagnostic