Raising prices without losing the room.
Raise prices for new customers immediately, keep existing customers on their current price for at least six months, announce the change 30 days out, and explain it once, clearly, without apologizing.
How do I announce a price increase?
- 1Email every affected customer at least 30 days before the change, from a person, not a noreply address.
- 2Lead with what they get: the features shipped since they joined, what's coming next.
- 3State the new price, the date, and exactly what happens to them, in plain numbers.
- 4Explain the reason in one sentence. Then stop explaining.
Should existing customers keep their old price?
Yes, for at least six months, and forever if you can afford it. Grandfathering costs you a little revenue and buys you loyalty, word of mouth, and the right to raise prices again later.
Your earliest customers took a chance on you. The old price is their reward, and they'll tell people the story.
What if people cancel over the increase?
Some will, and that's the deal. A 10% price increase that loses 5% of customers is revenue-positive with a healthier base.
Watch who cancels: if it's your most engaged users, the increase outran your value. If it's people who barely logged in, the price did you a favor.
Quick answers.
How often can I raise prices?
Once a year is normal and defensible. More than that erodes trust unless the product has changed dramatically.
Should I discount to keep someone who threatens to cancel?
No. One-off private discounts leak, complicate your books, and teach customers to threaten. Improve the product or let them go.
Do I need to justify the increase with new features?
It helps, but costs rising is also a real reason. Say it plainly once, customers respect honesty more than a feature list.
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