5 Price Adjustment Strategies Every New Founder Should Know Before Setting Their First Price

Published: September 12, 2015

Pricing might just be the most important, but also trickiest part of your business.

Most founders start by looking at their product, blurting out a random number, squinting their eyes, and saying…

“Mmmmm… sounds about right!”

And then, they defend it like it’s sacred. But pricing is NOT a gut feeling.

It’s a business decision.

One that can be optimized, tested, improved.

The right price won’t just bring in more revenue. It communicates your value, your market position, and your confidence.

In this article, I’ll show you the 5 price adjustment strategies every founder MUST know about to dramatically increase their revenue… and make 5x the business progress you would otherwise.

First: What Stage Are You In?

Before we even get into the strategies, you need to know what you’re optimizing for. 

Your pricing shouldn’t be one-size-fits-all – it should match your stage of business.

If you’re in the idea/MVP stage… 

Your pricing is more about testing perception than hitting targets. 

You want to learn what your ideal customer is willing to pay and how they frame value.

If you’re in the early revenue stage…

You’re probably balancing growth and validation. 

This is where segmenting and psychology can give you an edge while you still keep your customer acquisition cost (CAC) low.

If you’re scaling…

Welcome to margin optimization mode. 

You’re no longer just trying to convert – you’re trying to win on efficiency, sustainability, and perception.

Circular diagram with icons representing Price Adjustment Strategies:  pie-chart for discounts and allowances, figures for customer-segment pricing, map pin for geographical and international pricing, and lightbulb for psychological pricing.
StrategyDescription
Promotional and Allowance PricingPlay the discount tango to reward early bird payments, bulky buys, or out-of-season shoppers. Urgency and loyalty? Double whammy!
Segmented PricingDifferent strokes for different folks. Adjust prices by group and product variations. Think location- and time-based pricing.
Psychological PricingGet into customers’ heads. Trick your customers into loving your price with anchoring and reference pricing.
Geographical and International PricingTailor prices for life on the road. Account for freight, local economies, and quirky laws and regulations.
Dynamic PricingAdjust prices based on the specific situation or customer. Think gas stations adjusting prices based on crude oil prices or Ticketmaster inflating prices for in-demand concerts.

Are You In The “Has My Ebook” Stage Yet?

If not, I’d love for you to have my free Startup Launch Roadmap.

It’s a step-by-step guide designed to show you how to raise investments, build a product or service, launch it, and keep scaling as long as you want to.

If you’re an entrepreneur in ANY industry… you’ll find it really useful (plus it’s free!):

Promotional and Allowance Pricing

Aka: the adrenaline shot. 

Done well, this can trigger urgency, build loyalty, help you recoup cash flow, and make a TON of sales.

Seriously, launches can literally make up most of your yearly revenue.

But do it poorly… and you’ll just look like a desperate discount machine.

You can use discounts to reward behavior. Early payment, bulk buying, referrals, seasonal timing – all solid plays. 

But there’s a reason we don’t have Black Friday every week!

If you lean on discounts too hard, you dilute your value, not just your margins. 

Discounts PUNISH your recent customers, instead of rewarding them.

People who just purchased a product at full price should be the people you REWARD. Not the ones you alienate.

This is really a pro tip.

If you decide to put something on discount, make sure to give your recent customers an even BETTER deal!

Here are some more discount strategy tips:

  • Always include a time frame, and make it short. People act much more under a time constraint.
  • To speed up payments, you can offer net terms with an early pay incentive.
  • To win loyalists, ALWAYS think about how you can reward your best customers.

Note: Don’t forget about your metrics! 

Compare the cost of discounting to your CAC. If it’s cheaper than ads, go for it. If it’s not… step away from the coupon generator.

Segmented Pricing

This one’s all about leverage. 

Different customers perceive value differently – and segmented pricing lets you capture that value instead of leaving it on the table. 

For example:

  • Tiers: Some customers/client can only afford your basic package, but the results-hungry ones will buy the top package.
  • Different people: You can probably charge a CEO of a 100-person company more than the local flower shop.
  • Location: Think of front row seats always being egregiously expensive.
  • Time: Early-bird prices. Rings a bell?

But founders make one huge mistake here: they assume more segments = more revenue.

Nope.

You only win here if the segments are actually real. 

There has to be a clear difference in either value perception or usage behavior.

Think: freelancers vs agencies. “Basic onboarding” vs “done-for-you onboarding.” Off-peak access vs prime-time.

And if you’re still not sure which way to segment, start with time. 

It’s the easiest one to test (launch pricing, early access deals, etc.), and customers already understand it.

Psychological Pricing

This one is especially powerful for early-stage founders because it lets you increase perceived value without actually changing the offer.

Repeat after me:

People are irrational, but predictably so. 

We anchor. We compare. We avoid loss more than we seek gain.

So when you slap a premium offer at the top of your pricing page, you’re not trying to sell it — you’re trying to make your mid-tier look like a deal. 

When you reframe “Get 10% off” as “Don’t miss your 10% savings,” you’re triggering loss aversion.

But let’s be honest — these techniques are the sprinkles, not the cake. If your product sucks or your messaging is fuzzy, you won’t trick anyone into buying. 

Psychology works best when it reinforces real value.

Geographical and International Pricing

So you’re selling globally? Good. 

Just don’t assume your price should stay the same everywhere.

There’s a big difference between “affordable in New York” and “affordable in Mexico City.” 

Same product, WILDLY different buying power.

That’s where regional pricing comes in.

You could use:

  • Zone pricing: Different rates by country group.
  • Freight absorption: A fancy way of saying “we’ll eat the shipping cost”.
  • Localized bundles: E.g., smaller, cheaper kits for lower-income markets.

And no, this doesn’t mean you’re being unfair. It means you’re being thoughtful. Global scale doesn’t mean global uniformity.

Test your pricing in your top 3 countries. You might be surprised where your biggest margin is hiding.

Dynamic Pricing

This one gets a bad rep (but hey, we’re just trying to make a living here. A nice living.)

And yeah, if you’re inflating your prices by the hour like a scalper bot, you’re going to piss people off.

But when used strategically, dynamic pricing can feel… kind of elegant.

Once again, your safest bet is time-based pricing.

Early bird spots start at $99, regulars can be $149, and latecomers $199. 

This rewards action-takers, creates urgency, and boosts perceived value without feeling manipulative. This logic is clear to EVERYONE (and few will hate you for it)

You can also raise prices as capacity shrinks (“Only 5 coaching spots left at this rate”), or when features unlock. 

Just don’t lie and say “5 MORE IN STOCK!”… for a f*cking digital product. 

Explain why prices change. Make it part of the story. People get it, as long as there’s a ‘narrative’ behind it.

The Best of The Price Adjustment Strategies – Just Raise Your Prices.

This is difficult for everyone. No one believes in themselves enough at the beginning.

But let me help you overcome your internal battles for a second.

Premium prices bring premium results. 

Not just for you, but for your customers. 

People show up differently when they’ve invested real money. 

They pay attention. They take action. They don’t ghost you the moment life gets inconvenient.

They even give you better resources to work with. They HAVE to. They put REAL money on the line!

And then, there’s the ‘value perception’…

A $10 book and a $100 book might say the same thing. But the $100 one feels more important. 

You treat it with more respect. You expect more from it. And so you get more from it.

Founders often hesitate here because they’re worried people won’t buy. But it’s not about what “everyone” will pay — it’s about what the right people will pay.

You’ll find that a $300 client often treats it like the biggest decision of their life. 

They hesitate. They overthink. They send five emails before the kickoff call. 

Meanwhile… the $8000/month client wires the money and just says, “Done. When do we start?”

Higher-paying clients are usually easier to work with. They get better results. They refer better people. And the whole relationship feels lighter — more professional, more collaborative, more fun.

It doesn’t matter if you’re in SaaS, coaching, agency work, or even productized services. When your product creates meaningful outcomes, your price should reflect it.

Not as an ego trip, but as a filter.

Takeaways

Pricing is one of the most powerful tools in your business. It influences how your product is perceived, how profitable you are, and who you attract as a customer.

The five strategies you just learned give you a clear way to adjust your price with confidence, and finally start charging like a founder who knows what they’re doing.

Let’s recap what you should take from this:

  • Don’t run discounts randomly. Use them to reward behavior or drive urgency
  • Always include a time limit, and consider giving recent customers a better deal than new ones
  • Different buyers = different perceptions of value. Your pricing should reflect that
  • Don’t segment just because I told you so. Make sure the differences are real and obvious
  • People don’t buy based on logic, they buy based on how the price FEELS.
  • Use anchoring, framing, and loss aversion to increase perceived value.
  • “Affordable” means something different in every country. Adapt accordingly.
  • Test pricing in your top regions. Don’t just assume one price fits all.
  • Early birds should get the best deal. Latecomers pay more. That’s fair, and effective.
  • Price changes need a reason. Tell the story. Customers respect transparency.
  • Higher prices bring better clients, better results, and more fun.

Alessandro Zuzic

Author, Email Marketing Expert

Alessandro helps coaches and course creators grow their email marketing revenue through personality-based funnels. He believes that emails should be a joy to read AND make you sales!

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