Your product is awesome, why are you selling it so cheap? Pt.1

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At Airtree Ventures, I’ve been lucky enough to meet hundreds of companies across many different verticals, business models and stages. While questions on pricing do come up on occasion, it’s surprising how often it’s overlooked given its direct impact on the success of any business. While a huge amount of effort is poured into product and sales & marketing, there is much less focus on pricing despite the magnitude of difference it can make.

One of my favourite examples of the power of pricing is when Zendesk were bringing their enterprise product to market and initially found little success. They decided to experiment by increasing pricing and began to see real traction as larger customers started to take them seriously — purely based on higher prices. Their high-end enterprise product is now 40x their basic package.

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