How should a small startup price its first service package?
We are putting together our first service package and finding it hard to choose between a lower price that brings in early clients and a higher price that reflects the work involved. At Onyx Growth Labs, we have seen both approaches work for different clients, but I am not sure which trade-offs matter most at the very start. How do other founders decide on a first price, and what would you change about it after the first few clients?
Muhammad Haris
1 comment
Theodore Davis
For a startup's very first service package, price low enough to eliminate buyer friction, not to maximize profit. At day zero, your primary currency isn't margin—it's validated case studies, testimonials, and refining your delivery process.
How Founders Decide on a First Price:
Anchor to value, discount for risk: Calculate your ideal market rate (e.g., $1,500/month), then offer a 40–50% "founding client" discount in exchange for a video testimonial, detailed case study rights, and candid feedback. This protects your perceived value while making it an easy "yes."
Avoid "free": Even a nominal fee ensures clients actually implement your work, take calls seriously, and give you real results to showcase.
Cap the scope tightly: A lower price only works if the boundaries are rigid. Offer one specific, high-impact deliverable rather than an open-ended retainer so you don't burn out.
What to Change After the First 3–5 Clients:
Raise prices by 25–50% for every new cohort: Once you have proof the service works, stop discounting. Test higher rates with each subsequent prospect until you start getting pushback on roughly 20–30% of calls.
Shift from effort-based to outcome-based pricing: Early on, founders price based on hours or deliverables. After a few wins, price based on the ROI or business problem you solve.
Productize the friction points: Look at where you spent unexpected time with your first clients, and either build those steps into a higher-tier package or cut them from your base scope entirely.