Just realized my pricing was way off after a chat with a founder in Austin

I was at a coffee shop in Austin last month and ran into a SaaS founder who scaled to $2M ARR in 18 months. He asked what I charged for my software tool and I told him $29 a month. He laughed and said I was leaving at least $200 on the table per customer. That conversation made me rethink my whole value prop and I raised prices to $79 with better features. Has anyone else had a random stranger completely shift how they price?

2 comments

2 Comments

emerycarr16d ago

Always thought pricing was just about covering costs plus a little profit. That Austin guy changed my whole view on what something is actually worth to people.

the_joel16d ago

Oh man, once you see pricing that way you can't unsee it. I had to convince a buddy to stop selling his custom furniture at basically material cost plus ten bucks. @emerycarr is right, that Austin guy breaks it down in a way that just clicks. I told my buddy "what you think it's worth doesn't matter, what matters is what the person buying it feels it's worth to them." He raised his prices thirty percent and sales actually went up. People started treating his work like it had REAL value instead of just another piece of wood.