Engineers Underprice Products
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Sam Parr shares insights about pricing strategy, particularly focusing on engineer-led businesses and their tendency to underprice their products. This knowledge came from someone named Terry and proved successful in multiple instances.
Key Points:
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Engineer-Led Business Pricing:
- Engineers typically price their products poorly (too low)
- Simply doubling the price often works successfully
- No complex strategy needed - just increase the price
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Practical Success Examples:
- A software app purchase went from $20k/month to $40k/month just by doubling prices
- Fomo (Shopify app) grew from $14k/month to $95k/month after acquisition and optimization
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Enterprise Sales Strategy:
- Look for multiple email addresses from same domain (e.g., 18 people from same company)
- Contact HR or procurement departments directly
- Focus on companies already showing interest through multiple users
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Implementation:
- Find price in code using control+f
- Change the number to double
- Monitor results
- Contact bulk users for enterprise deals
This approach demonstrates that pricing optimization doesn't always require complex strategies - sometimes simple price increases can dramatically improve revenue, especially in engineer-led businesses where initial pricing may be too conservative.
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.