Playbook / Lessons / First customers: the offer, the price

Startups

A price tells buyers what to think of you

Spolsky works through how a small software seller should pick a price, arguing that the goal is maximum profit rather than maximum units sold. He shows with numbers how a price changes who buys, and says buyers read the price as a signal about the product. His point is that choosing a price is part of how you present the product, not an afterthought.

“When you’re setting a price, you’re sending a signal.”— Joel Spolsky, Camels and Rubber Duckies, Dec 2004

Do this

Put a price on your landing page today and ask three visitors what that number tells them about the product.

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Get your plan

All steps · Trust · Pricing