How We Stopped Guessing on Pricing and Doubled Our MRR
We tripled our prices and revenue went up here is what we learned
Pricing was our biggest mistake in year one. We launched at $9/month because we were scared. Twelve months later we tripled prices and revenue went up, not down.
Here is what changed our thinking:
1. We were optimizing for signups, not customers
Low prices attract price-sensitive users. They churn the moment a cheaper alternative appears. Higher prices attract people who need the outcome.
2. We ran a simple pricing test
We split our waitlist into two groups and quoted different prices in outreach emails. The higher-price group had a better reply rate, they asked more serious questions and were further along in their decision.
3. Value anchoring made the difference
We stopped describing features and started describing outcomes. "Save 5 hours a week on X" justifies $49/month instantly. "100+ templates" justifies nothing.
4. The lessons:
- Price to your best customer, not your average one
- Raise prices before you think you are ready
- If nobody pushes back on price, you are too cheap
What pricing lesson took you the longest to learn?
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Wow this is great if we try that we will loose the race and customers 😞
This hits hard. When I launched my accountability retreat in Zanzibar, I priced way too low out of fear — same story. The people who hesitated on price weren't my right audience anyway. I've since raised prices twice and the quality of applicants actually improved. That point about pricing to your best customer, not your average? Gold. That's exactly what shifted things for me.