A founder raised prices 8x with one major client and 2-2.5x across the board, keeping the same features. The moves gave the company breathing room before a $100M exit, after competitors copied their customer service advantage.
8× (about 8 times the previous annual price).
$6,700 per month.
Approximately 2× to 2.5× across customers.
Do you recall a product decision that helped a company to get to over 100 million? In exit, there was no one thing, but there was a combination of a bunch that really helped. So we were behind for a very long time. But the idea was that our customer service was just so much better than the competitors. But what happened after a while is we started to catch up and we started to get better at a bunch of things really, really fast. There's this mentality you have when you've just been obliterated by your customers while you suck at this. Well, your thing's not good at this. Well, it's not good at this that you. You price yourselves way too low for the service that you are providing. We fought in conversation in order to make sure that we could actually get to the best output, and them was, we need to drive up our price. And the three partners were adamant, there is no way in hell anyone is going to pay what you're suggesting. They're going to pay for this product. So I took it upon myself. I called up one of our biggest clients, I looked at what they were paying, and I jumped on a call with them. I said, all right, we're at contract renewal. This is great. You guys got a really easy discount when, you know, you guys started. But look, I want to show you all the metrics. And I lined up the metrics, I lined up the features that we were running, and I went to them. I. I ended up charging them about 8x what they were charging per year for the exact same functionality. And realistically, they got a ton of benefit up to that point. Came in the next morning, my CE sitting at his desk, and I said, I want to call meeting. We all went together and I just slammed down a contract and I said, here you guys go. He said, what the hell is this? I said, you're not raising the price to $6,700 a month. I said, we already did. They all signed it happily. And they all looked at me and I. One of the partners, he looks at me and he goes, how the did you do that? And he says, what did you promise them? What did. What did you screw up in a roadmap? Said, I didn't promise anything. Says, you're telling me that you got them to $6700 and you're not giving them one more feature? Said, yeah. He goes, guys, we got to raise our prices. So then we went on a bit of a rampage of actually driving up prices, you know, two, two x, two and a half X. And that gave us so much breathing room.
