Pricing the Painkiller
Core Argument: Early-stage pricing is not math. It is a positioning signal that determines who you attract and who you repel. Price too low and you attract the wrong customers. Price too high and you force yourself to deliver real value.
The Pricing Anxiety Spiral
No decision tortures early-stage founders more than pricing. The guess is almost always too low.
The pattern: Most first-time founders underprice by 2-5x. They anchor to their own psychology ("I wouldn't pay that much") rather than the buyer's economics ("This problem is costing me $X").
The consequence: Low prices do not just reduce revenue. They reduce the quality of your customers, the seriousness of your sales conversations, and the sustainability of your business.
Why Underpricing Is a Company-Killer
1. You Attract Low-Value Customers
Customers who buy on price are customers who will churn on price. Research shows that customers acquired through discounting churn at 40% higher rates.
2. You Cannot Afford to Serve Them
Every customer requires support, onboarding, and success management. At low price points, you cannot afford the customer success resources that drive retention.
3. You Signal That You Don't Believe in Your Value
Price is a signal. A $500/month tool is perceived differently than a $50/month tool - even if the functionality is identical.
The 10x Threshold
Remotir's pricing methodology is built on one principle: your price must be less than 10% of the quantifiable value you create.
This is the 10x Threshold. If your product saves or generates $100k/year in value, you can charge up to $10k/year and still present a no-brainer ROI.
How to Apply the 10x Threshold
Step 1: Quantify the Pain - What is the buyer's current cost of the problem in dollars? (Time wasted × hourly rate, revenue lost, cost of errors, etc.)
Step 2: Calculate the Value Ceiling - Multiply the quantified pain by your solution's expected impact. If you eliminate 50% of a $200k problem, your value ceiling is $100k.
Step 3: Set Price at 10% of Value - Your price should be no more than 10% of the value ceiling. $100k value = $10k max price.
The Minimum Viable Price
There is a floor below which your price signals that you are not serious.
B2B SaaS Pricing Floors
- SMB (1-50 employees): $200-500/month minimum
- Mid-Market (50-500 employees): $1,000-3,000/month minimum
- Enterprise (500+ employees): $3,000-10,000+/month minimum
Below these floors, you are not a software company. You are a feature.
The Discounting Trap
Discounting feels like a tool for closing deals. In reality, it is a tool for destroying pricing integrity.
What Discounting Signals:
- Your pricing is arbitrary
- You are desperate
- Future negotiations will be rewarded
The rule: If you would discount for one buyer, you must discount for all buyers. If you would not discount for all buyers, do not discount for any.
Conclusion: Price Is Positioning
Your price is not just a number. It is a statement about who you are, who your customer is, and what your product is worth.
Price low, and you attract bargain hunters, tire-kickers, and churners.
Price right, and you attract serious buyers who value what you've built.
The 10x Threshold is not just pricing logic. It is customer selection logic.