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>I’ve never put up prices for existing customers. I think this is key. New customers will evaluate based on the current price not historical prices, but if you
by thayne 6y ago
>I’ve never put up prices for existing customers.
I think this is key. New customers will evaluate based on the current price not historical prices, but if you increase the price for existing customers, they will feel cheated.
- obenn 6y agoI also think that this can motivate new sales. If I know I’m locking in my price with a company, I’m more motivated to buy now.
- lallysingh 6y agoAnd keep existing customers who may not need the product for a while, but want to keep the low price in case they need it again later.
- seanwilson 6y agoWhat do you do if you want to experiment with lower prices? If you lower the price for existing customers during the experiment, it's going to hurt if you end up putting the price back.
- behindsight 6y agoCall it a flash discount/sale/promotion for new/existing customers. Adjust the terms as needed.
- seanwilson 6y ago> Call it a flash discount/sale/promotion for new/existing customers. Not sure if you mean this, but the problem I find with offering sales (where you mention the end date) is you can't tell if some customers are only buying it because they don't want to miss out on a limited offer so it doesn't help you learn the real value of your product. Like when people buy clothes in a sale they end up never wearing, or people that buy Steam sale games and never play them.
- triceratops 6y agoWouldn't usage metrics tell you that?
- II2II 6y agoYou call it a discount and if any one says anything about it, you say that it is intended to encourage people to evaluate the service.
- II2II 6y agoSince they're talking about a B2B service, it's probably more about the predictability of pricing rather than feeling cheated.
- encoderer 6y agoIt surprised me at first but this was not my experience with our b2b SaaS. We raised prices slowly, in cohorts. It was after years without a price raise and a lot of new value adds. There was no churn.
- stevoski 6y agoOP here. The main reason I don't put up prices for existing customers is because this is how I'd want to be treated as a customer. Perhaps I'm not making the best decisions to maximise revenue, but part of the pleasure of running my own company is running the way I feel is right to me.
- royroyroys 6y agoThink it depends how prices are increased. When Keen.io went from a couple hundred dollars to a couple hundred THOUSAND dollars per month we had to cancel, but with services going up <50% after years of usage, it has often seemed reasonable.
- thayne 6y agoWhat if the price went up by 25% a week after you initially purchased a subscription (even if it has been years since the last time the price changed)? You could do something like only change the price for customers that have been customers for a long time. But that gets complicated, and then you are punishing your best customers for their loyalty.