FORGE Pricing Strategy
Value-based pricing for one-time products.
The Formula
Price = (DIY Cost × Time Saved) × Market Positioning Factor
Where:
- DIY Cost = Your R&D hours × $100-200/hr
- Time Saved = Immediate delivery vs. months of work
- Market Positioning = 1-5% of DIY costPricing Tiers
| Tier | Range | R&D Time | Target Buyer |
|---|---|---|---|
| Free/OSS | $0 | 2-8 weeks | Community |
| Accessible | $49-$149 | 4-8 weeks | Solo creators |
| Professional | $199-$499 | 6-12 weeks | Consultants |
| Enterprise | $999+ | 12+ weeks | Organizations |
MillPond Examples
ChirpIQX ($99):
- DIY Cost: 6 weeks @ $150/hr = $36,000
- Price: $99 = 0.27% of DIY
- Buyer saves: 99.73% ($35,901)
Market Essentials ($499):
- DIY Cost: 4 weeks @ $200/hr = $32,000
- Price: $499 = 1.5% of DIY
- Buyer saves: 98.5% ($31,501)
The 1-5% Rule
Charge 1-5% of buyer's DIY cost.
Too low (<1%): Undervalued Too high (>5%): "I'll just build it myself"
Price for value created, not cost incurred. 🪶