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29 December 2020
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Why startups lose money with their initial pricing

Have you ever wondered how startups get into that awful spiral of haemorrhaging cash by selling their product for less than it costs to make it? It’s on purpose. And there’s a good reason for it. But it all starts with their initial approach to pricing.

Why pricing a product is so difficult

The price is wrong, Bob

Your costs are usually your high price target

Your market price is usually your low price target

How wrong should you be?

This article was originally published on Medium by Joe Procopio

Joe Procopio is a multi-exit, multi-failure entrepreneur. In 2015, he sold Automated Insights to Vista Equity Partners. In 2013, he sold ExitEvent to Capitol Broadcasting. Before that, he built Intrepid Media, the first social network for writers. You can read more and sign up for his newsletter at www.joeprocopio.com