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  • šŸ“ā€ā˜ ļø Pricing Power is Founder Power

šŸ“ā€ā˜ ļø Pricing Power is Founder Power

(and how it affects valuation)

The Rock Wwe GIF

Earlier this month, I spoke with a founder who was raising money for the first time.

The difference between their pitch and most?
They had traction, a clear offer, and pricing that made sense.

No arm-waving. No handwaving. No ā€œwe’re early.ā€
Just predictable pipeline with contracts in hand.

When the numbers hold, the conversation shifts.
It’s not about convincing. It’s about deciding.

Best Links

šŸ’°Sales: Rob Snyder on 0-1 sales…the best way to figure it out is to sell. You run face first into the who, how, competition, and more. Check it out (here).

🌟 Industry Trends:
Exited founders are sharing all the post sale feels. If you’re curious what life looks like after exit, check this out. (Link)

šŸ Extra Credit:
When to sell your business, what are good reasons? (Link)

Most founders undercharge.
Not because they don’t know better…but because they’re scared of losing the lead.

So they add more features.
More time.
More customization.

They think they’re building goodwill.
But really? They’re eroding trust.
Discounting tells your buyer you don’t believe in your own value.

You can’t build a premium valuation with bargain-bin energy.

Pricing isn’t just revenue —> it’s positioning

My last company didn’t have any pricing power. Our commission checks were dictated by property managers. Not fun.

I told myself ā€œThis is still an attractive business model.ā€
What I was really doing was delaying reality.

In my current business, we use pricing to drive the right clients.

The people who say yes?
Are easier to work with.
Faster to close.
Less likely to churn.

Your price communicates more than your pitch ever could.

The 4-Part Price Test

Want to drive your valuation?
Run this audit today:

  1. Conversion: Are you pricing to close... or pricing to scale?

  2. Margins: What would 10% more let you reinvest in?

  3. Retention: Are you earning trust... or buying tolerance?

  4. Competition: Who is swimming in the same pond…and are you racing to the bottom?

Bonus question: What story does your pricing tell about your value?

You don’t need to be the cheapest.
You need to be the most believable at your price point.

Your action items this week:

Most founders treat pricing like a checkbox.
But your price is the business model…and valuation follows it.

Here’s what great operators get right:

  1. Audit your pricing logic.
    Can you explain how your price connects to outcomes?
    If it’s usage-based, prove usage drives results.
    If it’s fixed, prove retention and margin justify it.

  2. Track pricing exceptions.
    Any time you discount, log the reason.
    If discounts become the norm, your price is fake.

  3. Connect price to profit.
    Unit economics matter > user count.
    If price doesn't scale with margin, it’s not ready for a buyer.

  4. Stop quoting ranges.
    Give real pricing on your site or sales calls.
    Be proud of it. Stand behind it. People pay for crystal clear.

  5. Ask this every quarter:
    Is our pricing easier to sell… or easier to justify?

See you next week.

-Kinza

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