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How to stop leaving 11-17% of your revenue on the table
How-ToMachine Learning

How to stop leaving 11-17% of your revenue on the table

via Dev.toMohammed Ali Chherawalla3h ago

There's a specific kind of problem that doesn't feel like a problem because you never see it. If your price is too high, you notice. Conversion drops. Prospects push back on calls. You feel the pain. But if your price is too low? Nothing hurts. Customers sign up. They're happy. You're growing. Everything feels fine. Except you're collecting $49/month from people who would have paid $69. Multiply that by your entire customer base. Multiply it by 12 months. That's the silent cost of underpricing. Research from Price Intelligently and McKinsey consistently shows that 11-17% of revenue gets left on the table due to mispricing. Most of that isn't from pricing too high. It's from pricing too low. Why founders underprice There are three common reasons and they're all emotional, not analytical. Fear of losing customers. You worked hard to get these people. Charging more feels like risking them. But customers who love your product don't churn over a 15% price increase. Customers who were margin

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