How do I price my product?

Efri · 1 min read

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Not by looking at your costs, and not by looking at your competitors. Both of those tell you what things cost, not what they're worth.

Start with what the problem costs them. What are they losing, spending, or wasting right now by not solving it? Your price lives somewhere below that.

Then check what they already pay for adjacent things. What's their existing budget line, and who is it currently going to? That's the money that would move, and it tells you what shape your price should be.

Then pick a number that makes sense for the outcome, and test it. Don't agonise. You'll be wrong, everyone is, and the only real information comes from putting it in front of people.

Two things that matter more than the number:

The shape. Monthly, annual, per seat, per project. Same total, completely different decision.

Whether you can say it without flinching. If you can't, buyers hear it before they hear the number, and you'll discount before they even ask.

Start higher than feels comfortable. It's much easier to come down than go up.