Article · 6 min read
Dear SaaStr: How Do You Change the Price of Your SaaS Product Without Upsetting Existing Customers?
Jason Lemkin · SaaStr 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.
- 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.