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Ask HN: How do I convey a price increase to users of my web app?

12 points by prakster ↗ HN
I have a web app that helps small ecommerce merchants process their orders faster. Users pay about $25 per month. I'd like to send an email out next week, informing them of a price increase to $30 from next month onward.

- What are some examples of emails that work, and some that don't? - What is a good 'Subject' line?

8 comments

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aytekin
Don't.

Instead, grandfather existing subscriptions. Let them stay on the same price. They will appreciate it and they will be less likely to cancel their subscriptions in the future. Only change the price for new subscribers.

patio11
This is the canonical right answer for most SaaS products.

In addition, if you were to hypothetically announce today that prices are increasing after September 1st for new customers but that anyone with an account created before September 1st is grandfathered in on the old pricing, you'll get a nice spike in account creation in the next 10 days or so.

prakster
Hi Aytekin,

I understand and appreciate the suggestion. But I must. Given that, any pointers / leads / subject lines you can think of?

And by the way, how is instant.jotform.com doing?

wikwocket
If increasing the plan cost by $5 a month is essential for all existing customers (not just new customers), you may be undercharging and/or running into cashflow issues. If so, here are some other options:

* Make some new larger plans, with some enticement to convince current subscribers to switch. "Normally $60 a month, but only $40 a month if you sign up now..."

* Offer quarterly/yearly billing. Let people lock in the current rate if they preorder, or even offer a small discount in order to get the cashflow bump.

* Overall, don't get into the situation where $5 makes or breaks profitability. If you are indeed helping e-commerce merchants process orders with nontrivially less pain, $30 or even $90 a month is nothing to them.

prakster
Thanks, wikwocket. Am implementing your first two suggestions. I was simplifying when I said it's a $5 increase. Most people will be unaffected. But about 15% will be; I wanted to get some content ideas for what/how to say it to that segment.
tjansen
Be honest. If your costs are so high that you really need that extra $5 to be profitable, explain to your customers why your costs are so high or got higher. Tell them that you would like to keep the lower price, but you need the higher price to avoid operating at a loss and so that you can continue to offer your service in the future. Most of them should understand, especially if you are selling your product to other businesses.
prakster
"Most of them should understand,..." That is the hope! Thank you for your feedback.