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Less paying more customers or more paying less customers? (alien.top)

submitted 10 months ago by sjkurani@alien.top to c/entrepreneur@indiehackers.space

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We are new to the industry and our competitors are charging 3x of our amount. So should we raise our pricing or continue with less pricing to accquire more customers?

I feel less is good, but feeling that are we loosing some amount where the customers are already ready to pay.

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[–] AnonJian@alien.top 1 points 10 months ago

Rabid price slashing is everybody's 'growth hack.' And most announce they're going to slash prices to get something they want to call 'traction.' This happens so much the most popular price is zero.

One guy posted he made one million dollars in revenue. His question was, at what point could he tell his parents they no longer needed to pay his rent. He did not like my answer at all.

High price or low, profit is your guiding star. It's just that low pricing -- one third of industry average would qualify -- requires massive buying power and logistics efficiency to profit. Most small business has neither. So, we're back to not enough to pay rent.

The real question is, having locked yourself into low price hell, can you ever do anything else? People find bottom-feeding is a trap. The instant you try to raise prices, the only reason people are buying vanishes. Because we do not live in an era of excellence in business.

You want to give the Price knob a couple of cranks? Sure, why not? Report what happens.