Why you should never try to get pricing right the first time
“You're never gonna get price right the first time.”
No. And, honestly, in those days, you're not building a p and l. You're building a product. Like, you're trying to demonstrate demand. Whether you're making a dollar, $2, like, honestly, does not matter. Iterate, innovate. You can pivot. You can launch new product, etcetera. Change the color, change the texture, change the channel. You still need early adopters, and that signal gave us confidence that addressable market was there. It was only a matter of time. You're never gonna get price right the first time. Never. And you always hear it's always better to start high than low. You start high, you can test high, and if if people are taller, great. You've got higher margin. That's a win. If you don't see good conversion rate or customer acquisition cost is too high, you can test lower prices, and so you can test into the right
About this clip
Russell Breuer explains why early-stage founders shouldn't obsess over profitability and pricing perfection. He argues that the focus should be on demonstrating demand and iterating quickly, with pricing strategy favoring starting high and testing downward to optimize conversion rates.
Why this clip
Provides counterintuitive but practical advice about pricing strategy that challenges common founder assumptions about getting unit economics right from day one.
What they said next
From Squarespace template to first customer: a nurse with five Yorkies
7:17 - 28s · founder story
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