How to Price Your Product or Service (Stop Undercharging)
If everyone says yes to your price instantly, you're too cheap. Pricing isn't a guess — it's a decision. Here's how to set a price that keeps you in business and reflects your value.
Price the outcome, not your hours
Customers pay for the result, not the time it takes you. A logo that wins customers is worth far more than 'three hours of design.' Anchor your price to the value they get.
Always show three tiers
Most people pick the middle option, so design three: a basic, a recommended, and a premium. The premium makes the middle feel reasonable and quietly raises your average sale.
Know your real costs first
Add up your cost per sale before you set a price — most new founders skip this and accidentally sell at a loss. Your price has to cover costs, your time, and profit.
Test increases on new customers
Raise prices for new customers first, so you can test without risking existing relationships. Silence after you say your number isn't a no — don't rush to discount it.
Charging more isn't greedy — it's what lets you stay open long enough to help people. Price the outcome, offer tiers, and cover your costs.
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Start building freeFAQ
How do I price a product or service?+
Start from the value of the outcome, add up your real costs, and set three tiers. Charge enough to cover costs plus healthy profit, and test increases on new customers rather than guessing low.
Why shouldn't I be the cheapest?+
Competing on price is a race to the bottom — it attracts bargain-hunters and starves your business of the margin it needs to survive and deliver. Compete on value and results instead.
How do I know if my price is too low?+
If nearly everyone accepts instantly and never negotiates, your price is likely below the value you deliver. Raise it on new customers and watch whether quality demand holds.