We raised prices 60%. Nobody left.

We had been charging $29 per month for 2 years. We raised it to $47 for new customers on January 1. Existing customers were grandfathered for 6 months, then moved to the new price with a 60-day notice.

What happened:

• New customer conversion rate dropped from 3.1% to 2.6% in the first 60 days, then recovered to 3.0% by month 4

• Existing customers who churned specifically citing the increase: 7 out of 340 (2.1%)

• MRR went up 41% in 5 months

• Support ticket volume stayed flat

• The number of customers on the lowest tier dropped, which reduced our support load

The 7 who left were all on the lowest usage tier. They were also the 7 who generated the most support tickets per dollar. Losing them was not a cost.

The uncomfortable finding was that we had been underpricing for 2 years. The extra revenue we could have had would have funded 2 more hires. The fear of raising prices had cost us far more than the price increase did.

What is stopping you from raising your price, and have you actually tested whether that fear is real?