Podcasts · Founder Diaries Podcast
Minisode 20: On Pricing, Mistakes I and You Are Making and Signs It's Wrong
· 9:49
Episode Minisode 20: On Pricing, Mistakes I and You Are Making and Signs It's Wrong
Pricing might seem straightforward — but over time, I’ve learned that most of us underestimate how many things quietly eat into our margins.We price for the product.But we forget to price for the business. Your pricing should factor in:
Your salary and compensation as a founder/directorGovernment compliance (taxes, licenses, statutory requirements)
Rent and operational overheads
Staffing and labor
Software, tools, and systems that keep everything running.
If these aren’t built into your pricing structure, your profit is an illusion. And here’s the part we don’t talk about enough: pricing is emotional. For many founders, pricing feels deeply tied to self-worth. If you struggle with valuing yourself, charging higher prices can feel like you’re building a wall to push customers away. But that’s not what strong pricing does. Strong pricing creates sustainability.It allows you to serve well.It gives your business room to breathe.
Here are signs your pricing likely needs adjusting:
High revenue… but just as much money going out.
Constantly tight cash flow.
You can’t scale without feeling financially stretched.
You’re overworked and underpaid.
Revenue is vanity.
Margin is sanity.Cash flow is survival.
If your business is growing but you constantly feel pressure, the issue may not be effort — it may be"Profit is not extra - it's how the business stays alive."
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