How do I price my very first product when I have no idea what to charge?
Start from the value you create for the customer or the cost of their current alternative, not from your costs, and then just talk to people about money early and often. Pick a number that feels slightly uncomfortable to say out loud, because most first-time founders underprice out of fear. You'll adjust it within months, so treat your first price as a hypothesis to test, not a decision to agonize over.
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📖 Book
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When you are the only one selling something like your product, cost-plus and competitor benchmarks give you nothing to anchor on, and this book is the clearest case for the alternative: figure out what customers will actually pay before you finish building, then shape the product around that. Ramanujam ran pricing for hundreds of launches at Simon-Kucher, so the willingness-to-pay conversations he describes are practical, not theoretical. Treat it as a starting point for how to run those conversations, not a formula to copy.
From
Wiley (2016)by Madhavan Ramanujam and Georg TackeBook, ~240 pages
Have the willingness-to-pay conversation with customers early, before the product is done, so price shapes what you build instead of being an afterthought.
Different customers value your product differently: segment by willingness to pay rather than forcing one price on everyone.
Design the product and its packaging around the price customers will bear, not the other way around.
Kevin Hale from Y Combinator lays out the acquisition-cost and lifetime-value math in plain language, framed around how much you can afford to spend to win a customer. It is aimed at first-time founders, so there is no jargon wall, just the reasoning you need to set a target CAC. He is also refreshingly blunt that leaning only on paid acquisition is a weak growth story, which is worth hearing early.
This is the classic counterweight to the first-timer instinct to price low out of nervousness. McKenzie's core argument is that price should reflect the value the customer receives, not the hours or ease it took you to build, and that most makers systematically undercharge because they see their product's flaws instead of its alternatives. Read it right after you draft a number, then ask honestly whether you flinched too low.
