#5) The startup has pricing and cost issues.
Startup success can be achieved by pricing appropriately which can definitely be a dark art. For startups, it is often a challenge to price their product high enough to eventually cover costs. At the same time, the price has to be low enough to bring in customers.
For example, the 2019 shutdown of genetic testing and scientific wellness startup, Arivale, came as a surprise to many partners and customers. However, the reason behind the company’s failure is simple: the price of running the company, for instance, collecting the genetic, blood and microbiome assays that formed the foundation of the program, was too high compared to the revenues it brought in.
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