I raised the price of a small subscription tool by 40%. I lost zero customers.
Last quarter I raised the price of a small subscription tool I work on from $19 to $27 per month, about 40%. I braced for cancellations. Zero. Not one. But something else changed: the people who used to email asking for discounts just stopped emailing and the new signups pay full price without asking.
I think price is a filter not just revenue. A low price attracts people who doubt the value a higher price attracts people who've already decided. The bargainers weren't the best customers, they were the most expensive ones in support time.
So for those who've raised prices significantly: did your "annoying" customers disappear too,or did you just get lucky with a small sample? And the harder follow up: if you lost customers what was the actual churn rate and did the revenue still go up?
Replies
Be the first to reply
Have a question or a thought to share? Add a comment above to start the conversation.