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Aaron Epstein

12/16/22

@ Y Combinator

If you're charging ten dollars and customers are willing to pay a hundred, you should adjust your price accordingly; however, if they're only willing to pay fifteen or twenty, you're in the right ballpark.

Video

Startup Business Models and Pricing | Startup School

@ Y Combinator

Startup Business Models and Pricing | Startup School

12/16/22

Related Takeaways

Macy Mills

05/17/25

@ a16z speedrun

Test your pricing to find out how much customers are willing to pay; as your product matures, your ideal customer profile may change, and you should adapt your pricing accordingly.

Tom Blomfield

07/26/24

@ Y Combinator

If you're unsure how to price, start with a number similar to other software your customers buy, then increase it by 50% for each new customer until you find the right balance.

Tom Blomfield

07/26/24

@ Y Combinator

Aim to charge between 25% and 50% of the value you deliver, allowing the customer to retain a significant portion of the savings while ensuring a fair return for your service.

Aaron Epstein

12/16/22

@ Y Combinator

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.

Tyler Bosmeny

09/26/18

@ Y Combinator

When setting pricing, it's important to guess a number that seems reasonable, and if you can close that sale, try doubling it the next time. Iterating based on feedback is key to finding the right price.

Aaron Epstein

12/16/22

@ Y Combinator

Incrementally raising prices until you receive pushback from users can help you find the ideal price point where customers complain but still pay.

Peter Reinhardt

09/06/18

@ Y Combinator

When negotiating prices, don't be afraid to ask for more than you're comfortable with; it can lead to better outcomes and understanding of customer value.

Garry Tan

10/18/19

@ Garry Tan

Discuss your pricing strategy and how you determined your price points, including customer segments willing to pay different amounts.

Aaron Epstein

12/16/22

@ Y Combinator

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