If you’re a European company entering the US, your pricing is almost certainly too low.
The European pricing instinct.
In most European markets, particularly in the Nordics and Baltics, there’s a cultural tendency toward modesty. Companies price conservatively, lead with features, and let the product speak for itself. It works at home because the markets are smaller, relationships are tighter, and buyers are more process-driven.
How American buyers see price.
In the US, price is a signal. A $500/month tool and a $5,000/month tool look like different products, even if the features are similar. Enterprise buyers in the US expect to pay a premium for anything that saves them time or makes them money. If your price is too low, buyers assume your product can’t deliver at the level they need.
American buyers judge your price by what the product is worth to them.
What to do about it.
Start by studying how your US competitors price. Look at their packaging, their tier structure, their annual vs. monthly pricing. Then price at or slightly above the market. Starting high is safer. Raising prices later costs you trust.
Consider value-based pricing over cost-plus. American buyers judge your price by what the product is worth to them. Frame your pricing around the outcomes you deliver.
And if you’re doing enterprise sales, expect longer procurement cycles but larger deal sizes. Budget for that in your financial model.
If you enter the US at your European price, you lose money and signal weakness. Set your price by what US competitors charge.
Written by Kaspars Koo in Boston. More about Kaspars