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I want to raise prices. What happens to the customers who are already paying me, and should I grandfather them?

Start with new customers only. It costs you nothing, it tests the new price in the market for a quarter or two, and it means your first price rise is not also your first churn event. For existing customers, size the move: under about 15 percent with real new value attached, most people absorb it. Double the price and you should expect to grandfather, because the churn will cost you more than the increase earns. When you do move them, give a long runway (six to twelve months), honour every contract you already signed, tie the increase to something you actually shipped, and let support hold the old rate for a handful of loyal accounts rather than losing them over pride. Be honest that grandfathering is debt: every legacy plan you keep alive lives forever in your billing system, your contracts and your support queue.

Go deeper

5 resources, 2 India-specific, 5 link-checked.

📄 Article
✓ Link checked Free Beginner

The most sympathetic answer to this question: raise on new customers, leave the early believers alone while you are growing fast, and if you must move them, give six months or more on the old price as a thank you for taking a risk on you.

Dear SaaStr: How Do You Change the Price of Your SaaS Product Without Upsetting Existing Customers?

From SaaStr by Jason Lemkin 6 min read

  • Default answer: raise prices on new customers only, which forces you to deliver more value for the higher price.
  • If you must move existing customers, give them six months or more on old pricing as a thank you.
  • Do not raise prices because growth slowed and you are out of ideas, that is a short term patch.
  • Angering early customers costs referrals and second order revenue, which usually exceeds the bump.
Open saastr.com
📰 Newsletter
✓ Link checked Freemium Intermediate

Worked examples rather than theory, across hundreds of tracked price changes: who repackaged well (Ahrefs, Loom, Pipedrive), who took the backlash (Docker at 67 to 80 percent), and what separated them. Read it to calibrate how big a move you can make.

The good, bad and ugly of SaaS pricing changes

From Growth Unhinged by Rob Litterst and John Kotowski 12 min read

  • PricingSaaS tracked 339 changes across the top SaaS companies in one year: 126 pricing updates and 213 packaging updates.
  • Pipedrive added an Enterprise plan to anchor high, making the Professional tier look like the sensible buy.
  • Docker raised Pro 80 percent and Team 67 percent but left Business flat, missing its least price sensitive segment.
  • Zapier's new Professional plan shipped the same functionality at a 61 percent discount, roughly 30 dollars of price left behind.
Open growthunhinged.com
📄 Article
✓ Link checked India Free Beginner

A primary source rather than commentary: how India's largest software company actually told customers about a 15 percent rise. Note the mechanics worth copying, a hard cap on the increase, no change until renewal, and a window to lock in the old price for another year.

Zoho Price Change Notice

From Zoho 5 min read

  • Zoho gave months of public notice before the change took effect, with a stated scope of which regions were excluded.
  • Existing subscribers were held on old pricing until their renewal, roughly nine months out.
  • Any single invoice increase was capped at 15 percent, so no customer got a shock bill.
  • Customers who renewed before the cutover could lock the current price for the first year of a multi year contract.
Open zoho.com

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