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test-pricing.wav

May 23, 2026, 04:00 PM · 20s · ready

Summary

The most common mistake founders make in their software as a service business is undercharging, which signals that their product is not valuable. When a company sets its price too low, it often attracts lower-quality customers, whereas a higher price tends to drive better customers who are willing to pay for a more valuable product. This is because a higher price can be seen as a quality indicator, suggesting that the product is worth the investment.

Transcript

00:00 Instructor Welcome back to product faculty.
00:02 Instructor Today we are going to discuss pricing strategy for your software as a service business.
00:08 Instructor The most common mistake founders make is undercharging.
00:12 Instructor When you set your price too low, you signal that your product is not valuable.
00:17 Instructor A higher price often drives better customers.