Pricing can help determine customer willingness to pay and level of excitement for a product. Setting higher prices can reveal how much value customers see in the product. Even if customers refuse to pay, it provides valuable information indicating insufficient product value or wrong customer segment. Stripe's pricing strategy of charging 5% compared to competitors' 3% in the early days exemplifies testing customer perception of product value.
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