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.

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

Experimentation is key in pricing strategy, especially for AI products. Testing different pricing models helps determine what resonates with customers and drives value.

The first advice we give to startups is to dramatically increase their prices as quickly as possible.

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.

Most startups are significantly undercharging for their products, often due to misconceptions that they should not charge or should charge very little.

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.

Project-based pricing is common in consultancy and professional services, but founders should transition to more scalable pricing models as soon as possible.