Other factors to consider before you raise prices

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mstsumaiyaseop
Posts: 76
Joined: Thu Feb 02, 2023 10:55 am

Other factors to consider before you raise prices

Post by mstsumaiyaseop »

The former product manager at Yotpo, Adi Ben Mayor, shared a story with me: I was working for Yotpo, which started as a product for SMBs and now serves enterprises (Staples, for example). The prices went up significantly, way out of reach of SMBs, and some did churn. But it allowed the company to focus on our Enterprise features. But what about grandfathering people in? 3. Grandfather existing users into their old pricing. One way to avoid trouble from a price increase is to grandfather paid users into old pricing, taking out much of the risk (and some of the profit) from a price increase. You can inform existing users that prices are increasing for new customers but that pricing won’t change for them.

It shows loyalty and can strengthen their bond with your brand and product. But how long should you grandfather them in? A few months? A year? Forever? I put the question Dominican Republic WhatsApp Number List on some SaaS groups on Facebook. Most SaaS marketers and founders in the group say they’d rather grandfather old customers forever. question to saas facebook group about grandfathering customers into current prices. And it makes sense. The trust you build by grandfathering in current users may even spawn word-of-mouth marketing and more revenue.

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One response also highlighted the similarity between time-limited grandfathering and simple advance notice: I would give like a 3- to 6-month email of why the increase and the date that the customer can plan ahead…sort of how Amazon did with their Prime increase. So how should you explain your price increase? How to communicate a SaaS price increase Emails are a primary method of communicating a price increase. Here are two price-increase emails you can borrow ideas from—especially when grandfathering users in: 1. Appcues These emails were sent to Appcues’ current customers (left) and free-trial users (right): appcues emails sent to customers about price increases.
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