Stripe decided to set their price at 5% per transaction, nearly double what their competitors were charging. The company wanted to test how much value its customers saw in things like one-click signup and being able to get started quickly. If your cost is higher than your price, well, that means that you're going to have negative margins. Similarly, if your price is higher than the value that your customers see in your product, that means they're just not going to buy from you.
One of the most common topics that founders ask us about is pricing and monetization. In this talk, YC Group Partner Aaron Epstein outlines 9 different business models, and highlights lessons from top YC companies on how to best monetize and price your product.
Business Model Guide: https://www.ycombinator.com/library/Gh-business-model-guide
Apply to Y Combinator: https://yc.link/SUS-apply
Work at a Startup: https://yc.link/SUS-jobs