Startups should experiment with pricing strategies, especially when they have a small customer base, as it's easier to adjust prices than to raise them later.

In any audience, there are three market segments: the mass market, which is price-sensitive; the niche market, which values community and experience; and the luxury market, which seeks exclusivity and pedigree. Targeting the niche or luxury market can help increase prices.

Most startups are undercharging, and relying solely on lower prices as a differentiator is not a sustainable strategy.

Successful startups frequently test their pricing, adjusting it as they learn more about their market.

Raising prices is often necessary for startups, as many technology companies underprice their products in hopes of gaining market share.

As industries mature, they often shift from a middle-ground strategy to a 'barbell' strategy, where companies either operate at high scale or as specialized boutiques.

Competing on price can be dangerous because it doesn't indicate whether your product is effective or solving a real problem for customers.

Being cheaper than competitors is often a losing strategy. As AI models become more capable and affordable, differentiation through unique value propositions becomes increasingly important.

Pricing isn't just a number; it's a strategy that should evolve as your business grows, allowing for flexibility and adaptation to avoid common mistakes.