Lessons from changing Pricing Models

I recently raised our prices for new customers (old customers were grandfathered).

The new pricing reflected the value that we bring to a business. Unfortunately, the new pricing had a bad case of pre-purchase bill shock. I figured if FreshDesk (and others) were able to have graduated prices from cheap-to-large, then we could do that too. I was wrong. Still had interest, but the large plan pretty much killed all of the new signups.

I could have tried reversing the price list (large-to-small), however, at this point I had also ignored my personal feelings about FreshDesk's pricing. Their custom knowledge base (the cost of adding CSS to the KB) meant that I purchased a KB from Document 360.

I've made a big reduction to the prices now. They're still more than the old prices but going to allow users to add use individual addons.

That way, instead of adding $100 to the monthly plan, it'll be $30 + $30 + $30 + $10 / month. Same end result when you turn everything on, but the user has all of the control and there's no bill shock.