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.

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

If you build a better product for users, you also end up with a better profit and loss statement and better economics; if users love the platform, your customer acquisition cost is lower and throughput is higher.

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.

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

Establishing a clear differentiation and understanding multipliers and levers in your business model can lead to long-term customer relationships and a valuable company.

When you specialize, you can charge significantly more for your services, as demonstrated by my experience in software packaging.

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.

Founders often make the mistake of being afraid to charge for their product, fearing customer rejection. However, charging customers is one of the most effective ways to learn about your business, including whether users are willing to pay and which customer segments are most excited to pay.