The Realm of Low Expectations
February 20, 2026
As a startup investor, I've seen many careers develop over the last 20 years and one of the worst patterns I see is: low expectations.
Today, we’re talking about pricing and for most Software as a Service companies pricing should be quite simple. Here’s how to do it.
Keep it simple with a max of 3 pricing tiers. Don’t be tempted into giving customers incremental control and add-on options. That increases complexity and reduces revenue.
Encourage upgrades by coupling both increased usage allowances and premium features; don’t limit the ways customers can pay you more.
Most founders undervalue their service by a large margin. Start with what feels like a high price. You can always offer discounts for annual commitments.
Best of luck out there.
