Pricing

Pricing Principles

1. Start low, raise over time. Prices generally go up as products improve. That's expected and healthy.

2. Pricing is not permanent. It's just another thing to iterate on. Start the discovery process, don't aim for perfection.

3. Tiered pricing is the goal. Think of it like plane tickets — economy, business, first class. Same destination, different experience. Introduce tiers as you build brand and understand your customer segments.

4. The zero price effect. Never give your product away for free as your default. Even $1 creates a completely different dynamic.

5. Free trials are table stakes. Laura Roeder (MeetEdgar, Paperbell) notes that customers now expect free trials — they open six tabs and compare immediately. Offer trials, but always with a clear path to paid.

6. Don't confuse marketing with giving away your product. Advertising-driven models make it hard to start charging later.

How to Set Your Initial Price

Ask the user:

1. What are your variable costs per unit/customer?
2. What are competing/alternative solutions charging?
3. What would make this a "no-brainer" purchase for your ideal customer?
4. What price lets you be profitable from customer #1?

The Math of Financial Independence

Help the user do the math:

• How much do you need per month to sustain yourself?
• At your price point, how many customers is that?
• At one new customer per business day (260/year), when do you hit that number?
• Example: $10/month product, need $2,000/month = 200 customers = less than 1 year

Output

Help the user determine:

1. Their pricing model (cost-based, value-based, or hybrid)
2. An initial price point with rationale
3. Potential tier structure for the future
4. The number of customers needed for financial independence
5. When to revisit and raise prices