Doing the work

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

The short answer

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, your way

5 hand-picked resources, 2 India-specific, 5 link-checked. Pick how you want to dig in.

📰 Newsletter
✓ Link checked Freemium Intermediate

Why we picked it 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

Open growthunhinged.com
📄 Article
✓ Link checked India Free Beginner

Why we picked it 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

Open zoho.com

The same ground, at another level

How pricing and packaging reads from a different seat.

Terms in this answer

People also ask

I have no idea what to charge. How do I pick a first price? Find the right order of magnitude first and stop arguing about the exact number. Are you a ten dollar product, a hundred dollar product, a thousand... Breaking into GTM 4 resources → What is a value metric and why does everyone say it matters more than the number? A value metric is the thing you charge for: a seat, a thousand API calls, a gigabyte, a transaction, a resolved ticket. Patrick Campbell's line is ... Breaking into GTM 4 resources → How do I design tiers so buyers pick the right plan and grow into the next one? Good, better, best works for about two thirds of SaaS companies because it makes the choice easy, so start there unless you have a strong reason no... Doing the work 3 resources → How do I find out what customers will actually pay without just asking them? Asking "what would you pay" gets you a polite fiction, so use structured methods instead. Van Westendorp gives you a sensible range, Gabor-Granger ... Doing the work 4 resources → Should I price in rupees for India and dollars for everyone else? If you sell to Indian SMEs, price in rupees, include GST in the displayed number, and support UPI and domestic cards, because dollar pricing on a c... Leading a GTM team 4 resources → Buyers always ask for a discount. How much do I give, and how do I stop it eating my ARR? Assume discounting will happen and price for it rather than trying to hold an imaginary line. Jason Lemkin's practical version: mark list up so a s... Leading a GTM team 5 resources →

Also in Starting Up

The same ground, over in Money, pricing & model, our Starting Up track.

Also in D2C

The same ground, over in Money, pricing & unit economics, our D2C track.

eChai Partner Brands