Omar Zenhom says entrepreneurs usually price based on comfort or what competitors charge, leaving money on the table. Instead, start with your revenue goal, then work backward to figure out how many customers you need at your current price to hit it.
Let me ask you a question. How much do you want to make this year? Not a vague number, a specific number. Because here's what I've learned after 20 years of building businesses. Most people set their prices based on what feels comfortable to charge or what they think the market will accept, or they base their prices on what the competition's charging. And then they wonder why the revenue number at the end of the year is nowhere near what they actually wanted. The problem is not how much you're hustling. The problem is not even your product. The problem is your pricing strategy. Most people set prices, then they calculate how much they're going to make. No, you got to do the opposite. Pick the annual revenue number you want to hit. Now ask yourself, how many customers do I need at my current price to hit that number?
