What to consider before raising prices?
7 Things You Should Consider Before Increasing Your Prices
- Calculate the true costs in running your business.
- Offer existing customers grandfathered pricing.
- Understand what drives customers.
- Check out competitor pricing.
- Gather feedback on price changes.
- Give customers plenty of notice.
- Understand what you want.
How do clients increase their prices?
Tips for Announcing a Price Increase to Your Customers
- Contact them directly.
- Let customers know well in advance.
- Remind them that higher prices mean better quality.
- Explain the reasoning behind the price increase.
- Ensure the entire organization is aware of the price increase before announcing it to customers.
How do you ask for a price increase?
How do you choose the right SaaS pricing strategy?
Nailing your SaaS pricing strategy requires more than just picking the optimal price and forgetting about it. Pricing must be continuously monitored to ensure you’re effectively landing, expanding and retaining your customer base. And it needs to consider both the rational and irrational sides of how people make purchase decisions.
When to increase SaaS prices to increase customer lifetime value?
After 14 days new seats could only be added at the new higher prices. This led to a big increase in seats, which boosted the company’s average customer lifetime value by over 10\%. As for when to increase SaaS prices, Poyar emphasizes that it’s important for prices to align with the value of your product.
Which SaaS company has the most paying customers?
The SaaS brand I mentioned at the start is Intercom. And, as of now, they still boast 30,000+ paying customers (each of whom is paying more than before). Much of the outcome depends on what you do before you announce the price increase. This post will help you get that (and a few other things) right:
Is churn the only outcome of SaaS pricing increases?
But there’s hope: Churn isn’t the only outcome of a SaaS pricing increase. You will anger some users. Some will churn. But, if done right, a net revenue boost is entirely possible. Need proof?