Tools

Explore

Videos Channels Figures

Atmrix

Tools

Explore

Videos Channels Figures

Atmrix

AE

Aaron Epstein

12/16/22

@ Y Combinator

You should price based on the perceived value of your product rather than on cost, as many founders mistakenly use cost-plus pricing, which ignores the full value customers see.

Video

Startup Business Models and Pricing | Startup School

@ Y Combinator

Startup Business Models and Pricing | Startup School

12/16/22

Related Takeaways

Tom Blomfield

07/26/24

@ Y Combinator

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

Tom Blomfield

07/26/24

@ Y Combinator

It's crucial to never start pricing based on costs; instead, use the value equation as a foundation and let costs serve as a minimum threshold for pricing.

Aaron Epstein

12/16/22

@ Y Combinator

Pricing should be viewed as a tool to learn about customer demand and value perception, helping to refine your product offering.

Michael Seibel

09/06/18

@ Y Combinator

Many founders think they need to offer their product for free to gain users, but it's often better to charge a price to gauge real interest.

Y Combinator Cast

06/02/22

@ Y Combinator

Charging for your product shouldn't come from fear of losing customers; it should be based on understanding its value to users.

Ben Brook

04/19/25

@ EO

Start with a high price point to gauge market willingness; many founders are surprised by how much customers will pay for their product.

Aaron Epstein

12/16/22

@ Y Combinator

Pricing implies value; if your price is lower than competitors, customers may perceive your product as less valuable.

Aaron Epstein

12/16/22

@ Y Combinator

If your price is higher than the value customers see in your product, they won't buy from you, so it's crucial to find the right balance.

Macy Mills

05/17/25

@ a16z speedrun

Don't undervalue your product; while it's okay to start with lower prices, avoid making it a habit as it can lead to long-term pricing issues.