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    Business Fundamentals

    Topic 06 of 12

    Pricing That Captures Value

    Why what you charge should start from the value you create, not from your costs — and how to find the right price for your kind of business.

    The 3 decisions this topic covers

    1. Pricing off your costs?Price on what your product is worth to the customer, not on what it cost you to make.
    2. How do you find the right price?Price discovery is simply the ongoing job of finding the price your customers will actually pay.
    3. Are you leaving money on the table?Pricing benchmarking means comparing your price and packaging to competitors — and to the value you deliver — so you know whether you're leaving money on the table or scaring buyers away.

    The questions, answered

    Value pricingPricing off your costs?Price on what your product is worth to the customer, not on what it cost you to make. Think of it as three layers stacked up — value at the top, price in the middle, cost at the bottom. Value is the ceiling, cost is the floor, and your price should sit comfortably in between.Price discoveryHow do you find the right price?Price discovery is simply the ongoing job of finding the price your customers will actually pay. You do it with a mix of talking to customers, testing prices, and comparing to value — and how you do it shifts depending on whether you're D2C, SaaS or a platform.Pricing benchmarksAre you leaving money on the table?Pricing benchmarking means comparing your price and packaging to competitors — and to the value you deliver — so you know whether you're leaving money on the table or scaring buyers away. It matters because it tells you where you stand in the market.

    Who answers these

    The guide is written by the people who do this work for founders every week.