The Golden Rule of Startup Pricing: You are priced too low if you never get complaints about it.

The other day, while out on a long roller blade, I happened to be listening to a podcast by Tim Farris. (You need a long outing on the blades to consume one of his recordings.) He was referencing pricing, startups, and a statement that Marc Andressen’s made. Marc indicated that the No. 1 theme that their investment companies have when they are really struggling is that they are not charging enough for their product.  And this reminded me of a key startup rule of thumb. If your customers have not complained, every now and then, that your prices are too high, then you have not priced your product or service high enough.

Price objections are part of the sales game. But if you are dialed in to your target customer, their needs, etc. and are making some sales, and if you have never gotten push back on price, it is highly likely that you are leaving money on the table. Lots of it.

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