Changing plan pricing

Discussions
#1

Example of three plans: $25/$50/$75

Customer signs up today for $25 plan. At some point after that I implement the often given advice of raising prices so I double them to $50/$100/$150. However I maintain the current customers at their current pricing so that customer is still paying $25 for the plan that tier on. I’m fine with that.

The question comes when they outgrow that $25 plan. Did they sign up with the expectation that the next level up would be $50 rather than a hundred dollars? Should grandfathering be just for their current tier or for all pricing?

I’m very much leaning toward the former but I could see how a customer might take issue with that. Particularly if they were an early adopter.

#2

I wouldn’t grandfather the tiers. With SaaS you’re constantly improving the product, and responding to your own costs, so arguably Level 2 is was a $50 product then, and is a $100 product now.

It also gives you room to offer things like a “One-time upgrade special - Upgrade this week for just $50!” and you can both feel great about it.

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#3

If it was my decision I would not grandfather in tiers either. I would not have that expectation as a customer. I don’t think you will run into a problem, considering that having to purchase the next tier would hopefully mean business is good for the customer.

#4

Let them upgrade them to $100 but maybe give them 3 months 10%-20% discount when they upgrade. I personally had this experience as a customer and though the product was worth it because they improved it a lot with the time.

#5

Don’t grandfather the tiers. The way grandfathering works is that you only get to stay on it if you don’t change anything at all about your plan. That’s how it works with cell phone plans, gym plans, etc.

If you’re grandfathered, you realize that unless you sit still and squat on whatever plan you’re on, you’re gonna have to pony up.