·3 min read
How to Price Your MVP
Most founders underprice their MVP. Here's how to think about pricing when you're just starting.
The Golden Rule
Charge from day one. Free users give you feedback. Paying users give you validation. You need validation.
Simple Pricing Framework
- •Find competitor pricing
- •Start at 50-70% of their price
- •Offer one plan only
- •Add plans later based on demand
Pricing Models
| Model | Best For | Example |
|---|---|---|
| Monthly subscription | SaaS tools, ongoing value | $29/month |
| One-time payment | Templates, courses, simple tools | $99 once |
| Usage-based | APIs, infrastructure | $0.01 per action |
| Freemium | Large market, viral potential | Free + $49/mo pro |
MVP Pricing Tips
- •One price, one plan (decide later)
- •Annual discount if you need cash upfront
- •Grandfather early users at low price
- •Raise prices as you add value
- •Test willingness to pay in sales calls
How to Know If Price Is Right
- •20% of prospects say it's too expensive: good
- •Nobody complains: price is too low
- •Everyone complains: price is too high or value is unclear
Your MVP price is not your final price. It's a starting point for learning what customers value.