When to Quit: Founder Opportunity Cost
March 12, 2025
You have to be incredibly resilient to build a company from idea to IPO. Almost everyone who has made it will tell you there were many times when their company almost shut down.
There’s a lot of different approaches to pricing, but I suggest you keep it very simple and offer your customers fixed pricing.
Usage based pricing and similar models may seem attractive as the customer only pays for what they use, but that also means they don’t know exactly how much it’s going to cost over time. That uncertainty can stop you closing a sale.
Fixed pricing doesn’t mean “all you can eat” for a customer, if you use tiers you can offer fixed pricing while charging for both usage and features. That’s going to allow you to maximize revenue.
Pricing and payments tend to get complex quickly and it’s a very sensitive area for your customers. Fixed pricing helps you avoid lengthy engineering projects and numerous support requests.
Best of luck out there.
