Is it okay to increase the subscription renewal price for existing customers?

Buying & Selling
#1

Hi everyone,

I am not sure of the normal practice. I have a product based on subscription and the renewal fee is $14.95 per year.

If I wish to increase it to $19.95, will it be applicable to only new customers or can I increase it for existing customers? Or is it wrong to increase the price for existing customers?

I haven’t specified anything regarding price increase in service terms & conditions, yet.

Regards,
Gautam Jain

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#2

It’s up to you. Either approach is fine.

If you do raise prices, expect some people to complain and/or cancel their subscription. But if you are mentally prepared for that, it could be the right thing to do. Make sure to give adequate warning.

I prefer to keep my existing customers on their old price. If you do this, make sure to tell them. It will create goodwill and maybe some additional customer loyalty.

#3

This is a very good idea. Thanks a lot :smile:

#4

I considered this question carefully in the past and decided to keep my existing users on old pricing for as long as they remain subscribed. I think of it as a loyalty program of sorts. I haven’t told anyone about it, though.

Everybody has churn, which means that newer plans will gradually replace the old ones as time passes. It could be in several years, but it will gradually happen. So your ARPU will start rising anyway, no need to force new pricing on your existing customers.

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