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Interesting. Thanks for sharing. Being a serial entrepreneur I can attest that in multiple companies of mine raising the prices has been the best decision we've done, often taking us to profitability. It sounds scary at first, you worry about the value to customers. In reality what often happens is you are being started taken more seriously by customers. Often both deal size and number of deals per month increase - while we all worry that the deal number initially goes down. Most founders should try charging more than they currently do, especially if the initial prices have been taken from thin air.

In Europe I also see more and more teams who thanks to 3-5 times lower cost base than in Silicon Valley happily become profitable and growing from their own cost base. Reach $20k in monthly revenue and a team of 5-10 good people can enjoy their life as kings and queens. Grow $1-2k per month and hire one additional person each month. No investment needed if you don't want to accelerate.

Have followed both rules with my current startup Weekdone (https://weekdone.com/) and we're nicely profitable here in Estonia, growing month by month. Raising funding is a potential for upside, but not really needed.



Your post is timely. We're based in the UK and constantly being approached for investment and I just can't seem to bring myself to jump on that ride.

While £20k MRR won't allow us to pay for 5 - 10 people here in the UK, £50k MRR will and at any point I can make the call to sell the company.

By the way we're in a similar space, I run http://www.staffsquared.com (HR software).

We also see our competitors dropping their prices, but my take is the same as yours, we tell our customers that we won't compete on price as our app is simply better than the competition :)




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