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Normally, there are two ways to arrive at the price for a service/product in the startup phase. This discussion focuses on cost-based pricing in startups with a fundamental question – is this a valid method of arriving at your price point?
It is very easy and natural to be tempered to do everything and offer more services and products to customers. The thought of why not’ creeps in and makes you wonder if it is really worth venturing. Esp for a startup when there’s not a lot of income, the danger is the easy buck which can often distract us from the real business strategy. It is quite relevant to ask the question as to where your market lies – horizontal vs vertical market!