If you’re an indie hacker, chances are you’ve underpriced your product.
Not because it’s bad. Not because users wouldn’t pay more. But because pricing feels personal - and personal decisions are driven by fear, not data.
Underpricing is one of the most common (and costly) mistakes indie hackers make. And the worst part? It often feels like the smart, humble, “founder-friendly” thing to do.
It isn’t.
The Real Reason Indie Hackers Underprice
Most indie hackers don’t consciously decide to underprice. It happens quietly, through a series of “reasonable” decisions that stack up over time.
Let’s break them down.
1. Fear of Churn (Even Before You Have Users)
Raising prices feels risky.
You imagine angry emails. You imagine cancellations. You imagine Reddit threads calling you greedy.
So instead of testing higher prices, you stay low “just to be safe.”
But here’s the reality: Most users don’t churn over small, justified price increases - especially when value has grown. Fear of churn often costs more MRR than churn itself ever would.
2. Copying Competitors Without Context
Indie hackers often price by opening a competitor’s pricing page and matching the lowest tier.
But competitors:
- May have different costs
- May monetize elsewhere
- May be underpricing too
- May have raised prices recently while you didn’t notice
Pricing by imitation removes strategy from the equation. You end up anchoring your value to someone else’s assumptions instead of your own data.
3. The Reddit Pricing Trap
Reddit is great for validation - and terrible for pricing advice.
Common indie advice sounds like:
- “Start cheap and grow later”
- “Low price reduces friction”
- “Charge just enough to get users”
The problem? Reddit advice optimizes for approval, not sustainability.
People recommending $5/month tools aren’t the ones paying your hosting bills, support costs, or opportunity cost. Reddit doesn’t feel the pain when your MRR stalls.
4. The “Low Price = Faster Growth” Myth
This is the most dangerous belief of all.
Yes, lower prices can increase signups - but signups aren’t growth. Revenue is.
Low pricing often leads to:
- Low-intent users
- Higher support load
- Less serious customers
- Slower ability to reinvest in the product
Ironically, slightly higher prices often attract better users - ones who stick around longer and actually get value.
Underpricing Is an Identity Problem
Here’s the uncomfortable truth:
Many indie hackers underprice because they don’t fully believe their product deserves more.
Pricing becomes a reflection of confidence, not value.
But markets don’t reward humility. They reward clarity.
If your product solves a real problem, saves time, or makes money - it should be priced like it does.
The PerfectPrice Perspective
Pricing should react to market data, not fear.
Your pricing should change when:
- Competitors adjust
- Demand increases
- Usage patterns shift
- Your product delivers more value
Static pricing based on gut feelings and community advice leaves money on the table - quietly, month after month.
Data-driven pricing doesn’t mean aggressive pricing. It means accurate pricing.
Final Thought
Underpricing feels safe. But it’s often the riskiest choice you can make.
Every month you delay fixing pricing is MRR you’ll never get back.