Pricing
8 min read
What we learned running 41 pricing experiments
Across two cohorts we ran 41 live pricing tests. Raising prices worked more often than founders expected. Packaging mattered more than the number.
By Tomás Ribeiro
In weeks three to six every company runs at least three live pricing experiments. Across Cohorts 07 and 08 that came to 41 tests.
What changed revenue
Twenty-six of the 41 tests raised a price. Nineteen of those increased revenue within four weeks. Churn rose in only four of them, and in each case by less than two points.
The biggest wins came from packaging rather than price. Moving from per-use pricing to a plan with a clear ceiling lifted conversion in seven of nine tests.
How to run one
Change one thing. Show it to new customers only. Run it for at least two full sales cycles. Write down what result would make you roll it back before you start.