How do you think about pricing strategy?

Rahul Vohra
Replied byRahul Vohra

Founder & CEO at Superhuman

Niche: AI
Revenue: Approx. USD 30 Million/month
Location: San Francisco, California, United States
Started: 2009

Start with positioning before you ever think about price. Write the mad libs statement for who your product is for, how it is differentiated, and what the core value is. That tells you whether you are the Ford or the Ferrari of your category. Then use the Van Westendorp pricing sensitivity meter, which asks four questions at different price thresholds. We initially landed on 29 dollars per month, then rounded up to 30 on the advice of a pricing consultant because nines signal cheapness. We kept that price for almost a decade without changing it.

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