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AE

Aaron Epstein

12/16/22

@ Y Combinator

Pricing isn't permanent; it often takes years to capture the full value of your product, so don't worry about maximizing value early on.

Video

YC

Startup Business Models and Pricing | Startup School

@ Y Combinator

Startup Business Models and Pricing | Startup School

12/16/22

Related Takeaways

AE

Aaron Epstein

12/16/22

@ Y Combinator

Pricing isn't permanent; you can adjust it over time as you learn more and add value to your product.

MM

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.

MM

Macy Mills

05/17/25

@ a16z speedrun

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.

BB

Ben Brook

04/19/25

@ EO

Pricing should be iterative; continuously adapt and change it based on market feedback and data until you find the right price point.

AE

Aaron Epstein

12/16/22

@ Y Combinator

To summarize, charge appropriately, price on value, recognize that most startups undercharge, understand that pricing isn't permanent, and keep it simple.

TB

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.

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.

TB

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.

AE

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.