To set your price, ask clients what they would do if your service didn't exist. Their answer, like hiring a full-time employee, reveals the 'replacement value.' This figure provides a concrete benchmark for your pricing and uncovers powerful marketing language.
To convince a CEO of a brand's value, ask one simple question: 'Do we have pricing power?' This metric—the ability to raise prices at or above inflation without losing demand—cuts through marketing jargon. It is the most direct, tangible indicator of brand health that resonates with finance-focused leadership.
Product marketers often struggle to prove direct ROI. By influencing pricing strategy, they can make a tangible and measurable impact on revenue and ARR. Pricing is a form of value communication—a core PMM competency—making it a natural area for them to lead and demonstrate their contribution to the bottom line.
Instead of a cost-plus model, Baer justified her high fees by framing them as a bargain against a client's ongoing monthly mortgage. This value-based pricing positioned her service as an investment that saved clients money by selling their homes faster.
Entrepreneurs second-guess pricing because they undervalue intangible benefits like time savings, convenience, and client relationships. They also wrongly assume customers are solely price-driven, when loyalty is affected by many other factors.
Don't let your personal perception of what's 'expensive' limit your earning potential. Set your price high based on the value you provide. It is easy to lower a price that gets no buyers, but impossible to know if you could have charged more if you start too low. Never say no for the customer.
Price objections don't stem from the buyer's ignorance, but from the seller's failure to establish clear economic value. Before revealing the cost, you must build a business case. If the prospect balks at the price, the fault lies with your value proposition, not their budget.
When starting out, don't just charge a low fee. Instead, state your full market-rate price and offer a significant discount (e.g., 50%) as an introductory offer. This establishes your true value from the beginning while still winning the client. Then, systematically raise your price every few clients.
To see if an offer is scalable, factor in your own labor as a direct cost. Ask, "What would I have to pay someone to do this work?" Including this "founder salary" in your unit economics reveals the real profit margin and whether you can afford to hire help to grow.
Instead of hiding price until the end of the sales cycle, be transparent from the start. Acknowledge if your solution is at the high end of the market and provide a realistic price range based on their environment. This allows you to quickly qualify out buyers with misaligned budgets, saving your most valuable asset: time.
When increasing prices, the communication strategy should be direct and confident. If you truly believe the product delivers value commensurate with the new price, there's no need to hide the change. Evasive language or trying to 'shy away' suggests you doubt your own product's worth.