Most founders underprice by 50-70%.

Two bad assumptions drive this:

1. "I'm not a real developer, so I should charge less" (wrong)
2. "Lower price = more customers" (wrong)

You're not selling code, you're selling outcomes.

Lower price attracts wrong customers (price-sensitive, high-churn, high-support). Higher price filters for right customers (value-focused, low-churn, low-support).

Value-Based Pricing Framework

Don't price based on costs or competitors. Price based on value delivered.

Step 1: Calculate the economic value

What does your app help users:

• Save (time, money, resources)
• Make (revenue, opportunities)
• Avoid (fines, errors, risks)

Example: Real estate agent's portal

• Replaces: $500/month training programs
• Saves: 10 hours/month of manual training
• Value: $500/month (replacement) + $300/month (time at $30/hour)
• Economic value: ~$800/month
• They charge: $100/month (87% discount to alternative)

Choose Your Pricing Model