How to Identify Your ICP (Ideal Customer Profile) + Build a Pricing Strategy for Your Startup

One of the biggest reasons early-stage startups struggle is because they aren’t clear on who they’re targeting and how they should price their product. Both go hand-in-hand. Here’s a simple framework founders can use.

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1. Steps to Identify Your ICP

Step 1: Define the core problem your product solves

You don’t start with “Who will buy?” You start with “What problem am I solving?”

Example: “Automating follow-up emails for real estate agents who lose leads because of manual workflows.”

Step 2: Narrow down who faces that problem the most

Look at: • Industry • Role • Team size • Budget level • Urgency of problem

Example: Realtors closing 2–5 deals a month but losing potential leads due to slow responses.

Step 3: Identify the user's motivation

Ask: • Why would this person pay? • How painful is the problem today? • What outcome are they expecting?

When motivation is low, sales become impossible — no matter how good the product is.

Step 4: Validate via simple checks (not fancy research)

You don’t need interviews or surveys. Look at: • Existing competitors • Their customers • Market size • What people complain about online (Reddit, X, forums)

This alone gives a realistic ICP picture.

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1. Building a Pricing Strategy

Your pricing should depend on 3 things:

1. Value created

If your product saves someone money or time, that’s the baseline for pricing.

1. Ability to pay

A freelancer can’t pay what a small agency can. A small agency can’t pay what a mid-size company can. Your ICP directly influences your pricing.

1. Market comparison

You don’t need to match competitors, but you need to know where you stand.

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Simple Pricing Models You Can Use

A. Flat pricing (perfect for simple early SaaS)

E.g., $9/month or $99/year Good for: tools with few features, early products.

B. Tiered pricing

Starter → Pro → Business Each step unlocks more features.

Example: • Starter $19/mo: basic automations • Pro $49/mo: advanced workflows • Business $99/mo: integrations + priority support

C. Usage-based pricing

Pay per credit, per scan, per video, per report. Works well for AI-based tools.

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Examples (to make it clearer)

Example 1: SaaS for Real Estate Agents

ICP: Solo agents who lose leads due to slow follow-ups Pain point: Manual handling Pricing: $19/mo (Starter), $49/mo (Pro with automations)

Example 2: AI Video Generator for Ecommerce Sellers

ICP: Small online sellers who want quick product videos Pain point: High cost of editors Pricing: $0.10 per video credit or $29/mo for unlimited exports

Example 3: Inventory app for small retail shops

ICP: Shops with <10 employees Pain point: Manual stock tracking Pricing: $25–$49/month depending on number of SKUs

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Bottom Line

A clear ICP = clear messaging A clear ICP = realistic pricing A clear ICP = higher conversions

Start with the real problem → identify who feels it most → price based on value & ability to pay.

submitted by /u/Relevant-Race408
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source https://www.reddit.com/r/RealEstate/comments/1pcz0wt/how_to_identify_your_icp_ideal_customer_profile/