Trying To Decide A Price For Your Product? Here's ONE Thing You Need To Do

Here's how pricing was established in the first year of HubSpot. So my co-founder Brian and I decided that we were both aligned around this need to charge early for the product, charge early, charge often. The one requirement is like if you're going to charge people money, you have to figure out what it is you're going to actually charge. So now we have a need for a price, right? You know, my co-founder and I actually met in business school. We had bona fide MBAs. So you would think that we would be scientific and analytical about this. It's like, okay, we need to charge. We need to come up with a price. And Brian's like, Okay. Yep. We need to come up with a price. I'm like, what do you think we should charge? I don't know. What do you think we should charge? How about $250 a month? Okay. Done. Like no other discussion, no analysis, no, let's talk to 12 people. And I do not recommend that. That's not the advice. But the advice is it's more important to actually get a price out there and not overanalyze because there's not a whole lot of data you're likely going to be able to point to. The value of simplicity in pricing can't be overstated. So what made it easy in the early stages is like we had one price. That's what people bought. This is it. We know how many of these we need to sell. And then over time we layered on, oh, well, this $250 a month is really— we're leaving a bunch of money on the table because we're getting some bigger companies in and they can afford to pay a lot more. And so we said, oh, we'll do a pro product for $500 a month. So over time you can fix your pricing. Don't feel too badly about leaving some money on the table. Investing some early time in that actually goes a long way.