Pricing Mistakes

• Prices are too low
• Underestimate costs
• Don’t understand product’s value
• Focus on wrong customer

Facts

• Demand does not begin to accelerate until first 2%-5% of potential buyers adopt the product. Go for early adopters.

10-5-20 Price Optimization Rule

• Ensure your product provides 10× more value than the price.
• Increase the price by 5% at regular intervals.
• Continue raising the price until 20% of users churn, which helps identify the optimal pricing point.