Charge more. That’s the advice you keep hearing! And you’re willing to do it.
But the implementation? Scary af.
Raising prices for an ebook or consulting gigs is easy — but SaaS is a different beast. If you need or want to raise your SaaS price but can’t risk pissing off your customer base, this guide will help.
First up: learn the real reason behind furious customer revolts (note: it’s not actually the price itself). And equip yourself with one simple technique that will stop customer fury before it starts!
Turns out it’s not so hard if you don’t act like a jerk ;)
While it’s a fantastic rule to Always Be Grandfathering, maybe your SaaS is truly, massively underpriced. Maybe you’ve been stuck there, in a holding pattern, for way too long.
Sometimes you just really need (or really want) the extra revenue that can only come from charging more to your existing customers. Even if you can’t afford to piss them off.
Good news! It’s totally possible to raise prices on your existing customers without inciting revolt. I’ve done it, and this next essay will tell you how I did it - with virtually zero blowback…
How can you do it? In short: rather than force your customers to accept the new price, entice them to choose to pay more. Everybody hates being forced. Everybody loves being able to choose. The trick is to identify your best (happiest, most profitable) customers and then offer something just for them.
I’ve put together a strategy for you, with rules to follow and to-do’s to execute on:
Once you’ve resolved to raise your price and investigated your best customers and designed your enticements…
How should you approach your customers? What should you say to them – and how should you say it?
Money is an emotional topic, even for supposedly disinterested account managers — if they feel like you’re trying to take advantage of them, they’ll split.
The key is to remember the rule for all good sales pitches:
It’s not about your wants… it’s about their needs.
Friendly, reader-focused copywriting really pays off. Our own pricing launch strategy delivered an immediate 6.1% conversion rate.
If you’re feeling at a loss for words, you can crib directly from the actual emails we sent:
(Don’t miss these!)
What do you do when customers bitch about your price?
Will Low Prices Help You Sell More? No, really — do they? (This one’s highly technical — you’ll like it!)
When you think about price, don’t think about cost… don’t fall for the cake-and-icing pricing model.
Are you making the ‘inside-outside’ mistake when thinking about how to price your SaaS? (Hint: probably.)
Real life case study: Raising the Price - Not a Single Customer Lost.
- Charge More, Patrick McKenzie’s favorite (and famous) exhortation