Should we over-charge or under-charge our first customer?

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JASON LEMKIN

Overcharge if the customer is big, i.e., >$50k-$100k a year or so in ACV.

Undercharge if the customer is small by revenue.

Why?

You’re learning very quickly here if you are enterprise or mass-market. If you are going to do fewer big deals, or tons of small deals.

If your product and business is a volume game, get the volume going. Charge a super cheap price early to take friction out of sales, and to get to 100, 200, 500+ customers fast.

But if you’re going truly enterprise and BigCo early. Don’t sell cheap. Here, you’re selling a solution to a big problem. Not just a tool or a cheap fix. Here, you need to understand how much value you can provide. So go in high. And overdeliver when you win in. This will drag you upmarket, and you’ll learn. Which is key. You want to learn as quickly as possible.

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Published on December 23, 2016
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