When startups want to sell products in the USA, they need a good pricing strategy. Effectively pricing their product in the US market is always a challenge for early-stage startups. One common mistake is that founders of startups rely on what consumers are able and willing to pay in their home country. Another mistake is often made when founders simply think that Americans will spend $40 per month on their product, because it is not much when compared to the average income of a wealthy nation citizen of the USA. This is misconception is common for residents of California or New York. Founder should remember that price must be directly related to value. Price should not be related to disposable income alone.

Business to Business and Government Sales

Some startup founders fail to realize that the United States is not only the largest consumer economy by far. It is also the largest for government and business spending as well. Second place isn’t even close. These founders often fall short in taking this simple fact into consideration when they plan their pricing strategy. These founders often realize too late that If they are not selling their products to businesses, organizations, local governments and the Federal government in the US Market, then they are missing out.

Value Proposition

Another common mistake founders make is that they fail to understand the complete value proposition their product offers. Instead, they try to price their product at a similar price to a competitor. An easy fix to this error is to focus on the product’s value proposition. This is the most important pricing strategy. The total value the products offers a prospective customer in the USA is key. Founders excel when pricing products based on total value .

Branding Strategy

Successful cofounders take into account their branding strategy when they price products. It is important that founders price their products in the USA in a consistent manner with their branding strategy. That will help create, maintain, enhance and protect the brand. It allows to use the six criteria for choosing brand elements. The brand shall be memorable, meaningful, likeable, adaptable, and protectable.


These are the recommendations. Don’t price your product in the USA according to your home county. Consider the value proposition in addition to disposable income. Understand that the US market is very big. Businesses, organizations and governments are also customers in the USA. Make sure you price your product accordingly. Take your branding strategy into account.