Pricing Strategy
Are You Charging Too Little? How Startups Get Pricing Wrong
Many early-stage startups underprice not because of market fit—but because of fear, uncertainty, or undervaluing what they’ve built. Here’s how to price with confidence and clarity.
One of the most common—and costly—mistakes I see early-stage founders make?
Underpricing.
Not because their product isn’t valuable, but because:
• They tie price to cost, not customer value
• They’re afraid of scaring off early adopters
• Or (let’s be honest) they’re not confident enough in what they’ve built—yet
In healthcare and deep tech, the stakes are even higher. When your solution impacts clinical outcomes, operational efficiency, or regulatory compliance, pricing low can actually hurt you.
Why?
Because in high-stakes markets, trust and perceived ROI matter more than price. If your pricing feels “too cheap,” it can signal immaturity, risk, or lack of credibility—especially to enterprise buyers or strategic partners.
What Strong Pricing Requires:
1. Testing for value, not just willingness to pay
Talk to customers not just about what they’d pay—but what your product saves or unlocks for them.
2. Benchmarking competitors—without copying them
Market comps are helpful, but don’t assume their price = your ceiling. Context matters.
3. Aligning price with positioning
Is your product premium? Niche? Workflow-integrated? Your price should reflect what it represents, not just what it costs.
4. Charging like your product works
Confidence is contagious. If you believe in your product, your pricing should reflect that. Undervaluing your offer can undermine investor trust, buyer confidence, and long-term growth.
Final Thought:
Pricing isn’t just a number—it’s a narrative.
It signals quality, positioning, and ambition. Undervaluing your product isn’t being humble—it’s risky.
Need help aligning your pricing with your GTM and investor story?
At The Scale Foundry, I coach founders in regulated and innovation-driven industries to build pricing models that reflect real value—and drive sustainable growth.