Larry’s arbitrage example is almost embarrassingly small: buy a book for fourteen dollars, sell it for sixteen, and the two dollars proves the model works before you scale it. The first client plays the same role as that book, they are proof, not profit. Pricing them low is not charity, it is the cost of getting a real case study instead of a hypothetical one.
Larry’s rule is to sell it first and then go make it, so client one is often sold before the offer is fully built. Once client one is delivered, there is a result to point to, a story to tell, and a number to defend. Client two does not get the founding-customer price, because client two is not taking on the same unknowns client one took on.
The jump from the first fee to the market fee should track the jump in what is actually known about the offer. This is the non-literal franchise move again: the same service gets replicated for the next buyer, but the fee is no longer discounted for being new.
A founder who never raises the price after client one is confusing gratitude with pricing strategy. The low first price should have an expiration date attached to it, stated out loud, not left open-ended.
Larry treats the gap between client one’s price and client two’s price as visible proof that the offer improved. Undercharging forever is not loyalty to early supporters, it is a failure to reprice once the real value is known.
Details: Watch Larry explain the first-client price
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