Pricing should be adjusted based on the tension between demand and supply. Understanding when to increase prices involves assessing market demand and your product's value proposition. When you launch a waiting list with 100 people and only 10 spots are available, that creates demand and pushes the price up for those spots. Transparency of demand, like having a queue outside a nightclub, increases perceived value and can elevate prices.

Raising prices is often the easiest way to grow revenue, as it can double your income without needing to acquire more customers.

If users won't pay more, it may indicate that you need to enhance your product's value or address a more significant problem.

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

When launching a new product, it’s essential to justify a higher price point by demonstrating significant improvements in quality and sustainability.

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.

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

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

Founders often resist raising prices on their products, even when they are losing money on each sale, which can jeopardize their financial stability.