Monday Price Point:​
The best approach I have to raise prices significantly to new customers (e.g. +50%) is to bundle the price increase together with a significant value increase.

Example:

• Today you get ABC for $100
• Tomorrow you get ABCDE for $200.

The idea is that by changing what they get, you also prevent a simple apples-to-apples comparison of prices.

You are not raising prices.​

You are changing what they buy.​

And you give them more value.

I've used this approach to raise prices literally +1000% multiple times.
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Here is how you do it:

You have two main ways to give 'more':

• Packaging: More functionality or more service
• Pricing: More units (e.g users etc).

Packaging: So if you have 20 add-ons - roll them into your core solution and include them in a more bundled offering. Or include that cool, new AI functionality in your new packaging.​

Or invent a Premium Support offering and insist your largest customers buy this.

Pricing: Shift to a model that does not constrict or reduce volume of whatever you price per.

Example: if you currently charge per user, just give unlimited users and transfer the pricing model to something else - e.g. Employees, or Locations or something else that isn't restricted by choice.

Then write your customers an email to announce a 'New Deal' :

1) We're sorry we have delivered less value than we could in the past

2) We are now fixing it.

3) Pricing will be changed too.

4) Our new customers are already loving this.

5) Your special deal is: You currently pay 100. New pricing would be 500. You will be ramped up over 2 years to new price as an appreciation of your business.

6) More value to come in the future

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As promised: a point about pricing every Monday.
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PS: I'm currently in China (writing this newsletter from 'Lucky Cafe' in east Beijing) - so if you have any questions regarding pricing or B2B SaaS in Asia, let me know and I'll consider it for the next two newsletters.

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