Pricing Strategies for B2B Startups: A Guide to Experimentation

Pricing can make or break a business. It can determine success, failure, and even brand perception. That’s why, when it comes to pricing strategies for B2B startups, it’s important to use an experimental mindset. Tyler Gaffney, a venture capitalist at First Round Capital and the founder of Project Founder, explains how data and experimentation are essential components of pricing strategies. Let’s explore his advice on pricing strategies for B2B startups and how they can be used to create an effective go-to-market strategy.

Tips From Tyler Gaffney

Tyler Gaffney is a big advocate for using an experimental mindset when determining prices for products or services offered by B2B startups. He recommends focusing on conversations with customers as a source of data rather than benchmarking against competitors. This approach helps product founders better understand the customer need and tailor their offering accordingly. The desired outcome is to reach a go-to-market strategy that best fits the needs of the customer while still making the product profitable for the company.

Common Mistakes When Determining Pricing

Unfortunately, many founders make common mistakes when determining pricing models such as setting prices without customer input or believing a starting point is permanent. It’s also easy to set prices too low in order to quickly acquire customers but this strategy can backfire if it doesn’t produce profit margins that make sense in the long run. Over-engineering the pricing structure can also lead to confusion among potential buyers which may ultimately cause them not to purchase at all.

How To Get Started With Experimentation

In order to get started with experimentation, Gaffney recommends creating hypotheses from conversational testing of customers and then adapting pricing according to feedback received from those conversations. He suggests having customer development questions ready before engaging in discussions with potential customers so that companies have a framework within which they can ask relevant questions about product value and price points that meet customer expectations while still making sense from a profitability standpoint. Finally, he emphasizes the importance of using data-driven decisions when making changes or investments in product development that will help increase revenue over time.


Pricing strategies are essential for any business, especially B2B startups looking to launch their products or services into the market successfully. Using an experimental mindset when determining prices based on customer feedback allows companies to create a go-to-market strategy tailored specifically for them while staying competitive in terms of price point and profitability margins alike. By avoiding common mistakes such as setting prices without enough customer input or setting them too low from outset, businesses will be able to maximize their profits while providing their customers with value that meets their needs and expectations . This blog post provides valuable insight from Tyler Gaffney on how B2B startups should approach pricing strategies through experimentation backed by conversational testing and data-driven decisions in order achieve maximum success in terms of launching new products successfully into the market place..

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