You're underpricing because you're afraid to charge

The problem: You're charging $9/month because you're scared users will leave if you charge more. You look at competitors' free tiers and race to the bottom. Your revenue barely covers costs.

What Superhuman did: Launched at $30/month for an email client when Gmail is free. No free tier. No trial without a personal onboarding call. They positioned on "the fastest email experience ever made" and attracted users who value their time.

The result: Superhuman reached $100M+ ARR. Basecamp charges $349/mo flat when competitors charge per-seat. Both companies found that higher prices attract customers who: use the product more, churn less, need less support, and evangelize more.

How to do it:

1. Stop comparing to competitors' prices—compare to the value you deliver
2. Calculate the ROI: if your tool saves 5 hours/month and their time is worth $50/hour, $30/month is a steal
3. Raise prices for new customers first (grandfather existing users if you want)
4. Add positioning that justifies the price: "for professionals who..." or "the fastest way to..."
5. Remove the cheapest tier if it attracts users who never convert
6. Monitor churn—often it goes DOWN after a price increase because you attract more serious users

Key insight: Cheap attracts price-sensitive customers who churn at the first alternative. Premium attracts value-driven customers who stay because your product saves them time or money. Your price is a signal.