If you're charging ten dollars and customers are willing to pay a hundred, you should adjust your price accordingly; however, if they're only willing to pay fifteen or twenty, you're in the right ballpark.

Pricing below cost can be a risky strategy for gaining market share, often leading to unsustainable business practices. You might want to price a little lower now because your margins are going to improve with time, but it's a risky maneuver, and I advise startups to maintain an 80 to 90% gross margin.

When pricing your product, focus on the value it delivers to the customer rather than just the cost of providing the service.

Three key parts to pricing are: 1) Understand the value equation and price at about a third of the value delivered, 2) Consider your costs to avoid pricing below them, and 3) Differentiate your product to avoid price wars with competitors.

If you're unsure how to price, start with a number similar to other software your customers buy, then increase it by 50% for each new customer until you find the right balance.

Software businesses should target high margins, ideally around 80% to 90%, to ensure sustainability and profitability.

Our average discount rate for food is around 50%, with a range of 25% to 75% to ensure customer interest and vendor viability.

If you're charging significantly less than competitors, you might be attracting customers who only want the cheapest option, leading to misleading data about your product's demand. Successful products often charge a premium rather than being cheaper than competitors, as they solve significant problems for customers who are willing to pay more for effective solutions.

When you charge more, you can achieve higher margins, allowing you to invest more in customer acquisition and build a stronger competitive moat.