Did you underprice your first product too?

When I launched my first paid tool, I set the price at $5 a month because anything higher felt like I’d scare people away. It took me almost a year to realize the people paying $5 were the ones emailing support the most, and the few who would have happily paid $30 never thought it was a serious product.

I raised prices earlier this year and lost a couple of users, but revenue went up and, oddly, the complaints went down. I still feel a little guilty every time I look at the pricing page, though.

I’ve noticed two patterns with makers I talk to:

1. People who start cheap to “get traction” and then struggle for months to raise prices without upsetting early users.

2. People who charge more from day one, get fewer signups, but end up with customers who actually stick around.

How did you figure out your pricing?

• Did you start too low, too high, or somehow get it right the first time?

• If you raised prices, how did you handle your existing users?

• Do you still offer a free plan, or did you drop it at some point?