6 questions to help you price your product

Written by

Laura Bosco

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Pricing. It's your most effective growth lever.

Thinking about growth hacks and big ways you can grow your company? You should know this secret: price is your biggest growth lever. Most blogs don't mention it and most companies don't leverage it. But a mere 1% improvement in monetization can translate to over 12% increased revenue.

You know what most companies do to set pricing, though? They guess.

The good news is there's a better approach than guessing. There's a way to get on the right track from the start so you can get on the really-right track over time. The right starting track is our focus for today. The 6 questions below involve some legwork. But if you put in the time now, you'll reap profits later. 💰

1. How much does it cost to run your business? (setting a lower limit)

2. How much are customers willing to pay? (measuring perceived value)

3. What is your product worth? (measuring objective value)

4. What are your competitors doing? (pricing in context)

5. What does your brand communicate? (aligning branding)

6. Do you lack confidence in your product? (aligning yourself)

Even if you haven't scoped your MLP yet, think about pricing. The right initial price keeps your company afloat. Don't guess and don't throw darts at the board in the break-room 🎯. Know what you have, what your customers are willing to pay, and what you need to make to stay afloat.

Need help surveying those customers? We got your back.

"Pricing is the biggest impact lever on your business: do not improvise it."- Hotjar

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Laura Bosco is a writer and people person. She helps tech startups do tricky things, like explain who they are and what they're doing. Ping her on Twitter to say hi.