Recently I was talking with an entrepreneur about product pricing and positioning ideas. Only, this startup was pre product/market fit and didn’t have 10 passionate customers. My advice: product pricing doesn’t matter when searching for product/market fit. What matters is getting the product in the hands of as many potential customers as possible and iterating based on feedback.
Here are a few thoughts on product pricing pre product/market fit:
- Charge something, even if it’s nominal, so as to get quality feedback
- Pricing is fluid and will change several times per year, even after product/market fit (see Pardot’s pricing progression through the years)
- Start pricing higher than initially thought as prospects are more likely to give pricing feedback that things are too high than they are that it’s too low. Also, it’s easier to offer discounts to test different pricing strategies than it is to try and retroactively raising prices.
When debating product pricing pre product/market fit, ignore coming up with a perfect price and instead focus on customer delight.
What else? What are some more thoughts on product pricing pre product/market fit?