Essay · ~5 min read

How to price something

Jason Fried · Signal v. Noise (37signals) Free Beginner

Fried's answer is deliberately unromantic: pick a number, put it in front of real people, and let the market correct you instead of trying to compute the right price on paper. For a founder with no comparable product to benchmark against, this permission to just decide and adjust is more useful than any formula. Short enough to read in five minutes before you write down your first price.

  • There is no formula that replaces putting a real number in front of a real buyer.
  • Treat your first price as a hypothesis you will revise, not a commitment you are stuck with.
  • Overthinking the exact number delays the only test that matters: will someone actually pay it.

The question it answers

  1. How do I price my product when I am selling it myself and have no comparable competitors?

Read with it

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  2. The best book on positioning against competitors by understanding the alternatives customers actually consider. Directly turns... aprildunford.com Book · ~200 pages Obviously Awesome: How to Nail Product Positioning so Customers Get It, Buy It, Love It April Dunford
  3. Patrick Campbell built ProfitWell on pricing data from thousands of companies, and this is the single best free deep-dive on... lennysnewsletter.com Article · long-form guide Pricing Your SaaS Product Patrick Campbell (ProfitWell), via Lenny's Newsletter
  4. The most concrete guide to actually measuring what customers will pay, including survey methods and tier design. It turns... lennysnewsletter.com Article · long-form guide The Ultimate Guide to Willingness to Pay Lenny Rachitsky & Patrick Campbell
  5. Founders selling their own product almost always price too low, because they see every flaw in what they built and undercharge... Kalzumeus Essay · Long-form essay plus transcript, ~30 min read Ramit Sethi and Patrick McKenzie On Why Your Customers Would Be Happier If You Charged More Patrick McKenzie (patio11)
  6. Video Startup Pricing 101 Kevin Hale
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