How to know if your price is too low (not just too high)

Every founder worries about pricing too high. Almost nobody worries about pricing too low. When you price too high, you feel it immediately. Conversion drops. Prospects ghost after seeing the numbe...

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How to know if your price is too low (not just too high)

Source: DEV Community

Every founder worries about pricing too high. Almost nobody worries about pricing too low. When you price too high, you feel it immediately. Conversion drops. Prospects ghost after seeing the number. The pain is visible and it pushes you to act. When you price too low, nothing hurts. Customers sign up happily. Nobody complains. You're growing. Everything feels fine. But underneath the surface, you're collecting less than buyers would willingly pay, attracting the most price-sensitive segment of your market, and building a business that can't sustain itself at scale. Underpricing is a slow bleed. And most founders don't realize it's happening until they try to raise prices and meet more resistance than expected - because the wrong customers are already on board. The signals you're underpriced Your close rate is suspiciously high. If you're closing more than 35-40% of qualified leads, it probably means nobody is saying no. That sounds great until you realize it means the price isn't filt

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