FAQs
FAQs
How do I know if I am underpriced? Look for the tells: nobody ever pushes back on your price, you win deals too easily, customers call you a bargain, and your sales cycle is short. If price is never an objection, it is almost certainly too low. The cleanest test is to quote a higher number to your next batch of new prospects and watch whether your close rate actually moves. If it barely does, you just found free margin.
Will raising prices cause customers to leave? Far fewer than founders fear. Most price increases see only a small share of customers churn, and that share is usually your least-engaged, lowest-value buyers, who are expensive to serve anyway. Grandfather existing customers for a sensible window, raise the price for new buyers first to test it, and tie the rise to genuine added value. A confident price stated plainly is itself a quality signal.
How many pricing tiers should I have? Three is the workhorse, sometimes four. A starter tier to get price-sensitive buyers in, a middle tier where most of your revenue should live, and a premium tier that captures high-value buyers and anchors the whole ladder. More than four and you create decision paralysis. The number matters less than whether each tier has a real fence that a buyer genuinely needs to cross.
Should I publish my prices or keep them on a sales call? It depends on deal size and complexity. For lower-priced, self-serve products, publishing prices builds trust and speeds the buyer's decision. For larger B2B deals where value varies a lot by customer, a "contact us" on the top tier lets you price to the specific buyer and the specific outcome. A common pattern is to publish the lower tiers and keep enterprise as a conversation.
What value metric should I bill on? Whatever rises with the value the customer receives, and that they can easily understand and predict. Seats, volume, contacts, revenue processed: the test is that when the invoice goes up, the customer also feels they are getting more. Avoid metrics that punish success or that a buyer cannot forecast, because unpredictability drives churn. For many B2B products a committed base plus usage above it balances fairness with the predictability procurement wants.
How do I run a price test without upsetting existing customers? Test on new prospects, not your current base. Quote the new price to incoming leads, run a pricing-page experiment, or offer a new tier to a fresh cohort, and measure close rate, deal size, and tier mix. Your existing customers stay on their current terms until you decide on a deliberate, well-communicated increase with a grandfathering window. Never surprise a loyal customer with a number change they did not see coming.