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

I've seen startups charge as little as 1/10 or 1/100 of what they should be charging, which sets them up for failure.

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

Competing on price can be dangerous because it doesn't indicate whether your product is effective or solving a real problem for customers.

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.

Companies like Instacart, Airbnb, and Dropbox were successful because they positioned themselves as premium options rather than competing on price.

Many successful startups serve markets that have never been served before or charge more than their direct competitors, indicating a strong value proposition.