We've operated a SaaS product for many years and we think our pricing is too low to enable growth. I believe we need to raise our prices on all current customers and not just rely on higher prices for upgrades or new customers only. We're really serving customers and launching valuable features right now and would like to make an announcement in a couple months that the new pricing is going into force. To be fair, we plan on giving customers 60 days to decide if they want to continue service and we don't think there are any comparable alternatives to our service.
I can't name them off the top of my head but there are dozen's of SaaS companies who have done this. Some even went from FREE to only paid.
I would suggest the following
- Don't raise prices on existing customers unless you absolutely need to, to stay alive
- Test it first without build anything by updating your pricing page and see if there's a huge drop in conversions.
- Try starting with 50% increase first.
Just so you know, it's not about the price, it's about the value your product delivers. My rule is: How much $ do we save a company, then divide that by 3, that should be a good ballpark for pricing.
Hope that helps.
Answered 10 years ago
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