The Numbers First
Same content. Same audience. Just a price change.
| Metric | Before | After |
|---|---|---|
| Price | ¥980 (~$6.50) | ¥2,980 (~$20) |
| Monthly sales | 5 units | 6 units |
| Monthly revenue | ¥4,900 | ¥17,880 |
| Revenue change | baseline | +264% (3.6x) |
Sales count barely changed. Revenue tripled.
This isn't a one-off. It's what happens when you stop underpricing.
Why Engineers Underprice Everything
Mistake 1: Cost-based pricing
Engineers love to calculate: hours_spent × hourly_rate = price
5 hours × $20/hr = $100 → feels too high → price at $10
The problem: buyers don't care about your costs. They care about the value they get.
The right formula: value_created_for_buyer × 0.1~0.3 = price
Example: Your auth template saves a developer 2 days of work.
2 days × $50/hr × 8hrs = $800 saved
Fair price: $800 × 0.15 = $120
You were selling it for $10.
Mistake 2: Racing to the free tier
"There's a free version on GitHub, so I'll price at $5."
Your version has:
- Setup documentation
- Support
- Real-world usage validation
- Bug fixes
If you've differentiated, don't match the free tier's price.
Mistake 3: Fear of rejection
The most common reason for underpricing.
Price is a signal. A $5 product and a $20 product with the same features — buyers perceive the $20 version as more serious. Underpricing can hurt conversions.
The 3-Step Pricing Framework
Step 1: Calculate the buyer's "savings cost"
Define your target precisely:
- ❌ "developers" (too broad)
- ✅ "employed engineers building a side-project SaaS who waste 2+ days on auth/payments every time"
Savings calculation:
Hourly rate: $50
Time saved: 16 hours (2 days)
Total savings: $800
Appropriate price zone: $80–$240 (10–30% of savings)
Step 2: Create 3-tier pricing
Use the "compromise effect" — people tend to pick the middle option.
Basic $15 │ Core content only (slightly underwhelming)
Standard $49 │ Core + docs + Q&A ← make this the obvious choice
Premium $149 │ Full support + 1-on-1 (for people in a hurry)
Design Standard to look like the clear value winner.
Step 3: Raise prices after 10 sales
Signals to raise prices:
- Lots of inbound questions (demand > supply of attention)
- Few competitors at your price tier
- Support is eating too much time
Process:
- Notify existing buyers ("price increases in 1 week")
- Create urgency with deadline
- Raise the price
- Monitor conversion rate — if it barely drops, you're still underpriced
2026 Indie Dev Price Reference
| Category | Reasonable Range |
|---|---|
| UI components / simple tools | $5–$30 |
| SaaS starter kits | $30–$200 |
| Auth + payments full implementation | $50–$300 |
| Technical guides (single) | $5–$15 |
| In-depth practical course | $50–$500 |
| SaaS monthly (consumer) | $5–$30/mo |
| SaaS monthly (business) | $50–$500/mo |
TL;DR
- Price = (value created for buyer) × 10–30%, not (your cost)
- Add Basic/Standard/Premium tiers to anchor the middle
- Raise prices after 10 sales — you won't lose as many customers as you fear
- Cheap prices signal cheap quality
Stop undercharging. Your product is probably worth more than you think.
Full guide with templates and negotiation scripts (Japanese): masatoman.net
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