$npx -y skills add keeea/minimalist-entrepreneur-skills --skill pricingHelp figure out pricing for a product or service using minimalist entrepreneur principles. Use when setting prices, considering price changes, or struggling with what to charge. Based on The Minimalist Entrepreneur by Sahil Lavingia.
| 1 | # Pricing |
| 2 | |
| 3 | Help set the right price. |
| 4 | |
| 5 | ## Core Principle |
| 6 | |
| 7 | **Charge something. Always.** Massive difference between free and $1. Dan Ariely calls it the "zero price effect" — people line up for free brownies but the line disappears at 1 cent. If you don't charge, you can't learn what customers actually value. |
| 8 | |
| 9 | ## Two Pricing Models |
| 10 | |
| 11 | ### 1. Cost-Based Pricing |
| 12 | - Calculate costs (hosting, time, materials, payment processing) |
| 13 | - Add a margin (20-50% typical) |
| 14 | - Best for: physical products, services with clear costs |
| 15 | |
| 16 | ### 2. Value-Based Pricing |
| 17 | - Price based on value to the customer, not your costs |
| 18 | - A feature might cost nothing extra but be worth a lot |
| 19 | - Example: Netflix's multi-screen feature costs nothing but commands a premium |
| 20 | - Best for: software, digital products, services with high perceived value |
| 21 | |
| 22 | ## Pricing Principles |
| 23 | |
| 24 | 1. **Start low, raise over time.** Prices go up as products improve. Expected and healthy. |
| 25 | 2. **Pricing is not permanent.** Another thing to iterate on. Start the discovery process. |
| 26 | 3. **Tiered pricing is the goal.** Economy, business, first class. Same destination, different experience. Introduce tiers as you build brand. |
| 27 | 4. **The zero price effect.** Never give your product away free as default. |
| 28 | 5. **Free trials are table stakes.** Customers expect them. Offer trials with a clear path to paid. |
| 29 | 6. **Don't confuse marketing with giving away your product.** Ad-driven models make it hard to charge later. |
| 30 | |
| 31 | ## How to Set Initial Price |
| 32 | |
| 33 | 1. What are your variable costs per unit/customer? |
| 34 | 2. What are competing solutions charging? |
| 35 | 3. What would make this a "no-brainer" for your ideal customer? |
| 36 | 4. What price lets you be profitable from customer #1? |
| 37 | |
| 38 | ## The Math of Financial Independence |
| 39 | |
| 40 | - How much do you need per month? |
| 41 | - At your price point, how many customers is that? |
| 42 | - At one new customer per business day (260/year), when do you hit that number? |
| 43 | - Example: $10/month → need $2,000/month → 200 customers → less than 1 year |
| 44 | |
| 45 | ## Output |
| 46 | |
| 47 | Help determine: |
| 48 | 1. Pricing model (cost-based, value-based, or hybrid) |
| 49 | 2. Initial price point with rationale |
| 50 | 3. Potential tier structure for the future |
| 51 | 4. Number of customers needed for financial independence |
| 52 | 5. When to revisit and raise prices |