Pricing Strategy: How Incremental Increases Boost Revenue
Tibo
@tibo_maker·Sep 4
Replying to @tibo_maker
We launched Tweet Hunter at $9/month.
Seemed smart.
"More people can afford it!"
Every few months, we raised prices incrementally.
$9 → $19 → $29 → $39 → $49
Expected: angry customers, mass churning.
Reality: revenue exploded faster than churn.
Tibo’s Tweet about raising Tweet Hunter’s price from $9 to $49/month is a masterclass in pricing psychology. Instead of seeing angry customers or high churn, revenue skyrocketed.
Marketing analysis
Most founders underprice out of fear. Tibo did the opposite. He tested, nudged prices up slowly, and proved that customers will happily pay more when they see the value grow.
Why it works
- Gradual hikes reduce sticker shock
- Perceived value rises alongside product improvements
- Higher prices attract more serious customers
- Revenue gains often outpace small churn increases
Examples
- Netflix’s small annual price bumps rarely cause churn
- Notion went from free-only to $10/month and gained loyal users
- ConvertKit tripled prices over time while growing to $30M ARR
- Figma’s paid tiers justified higher costs through team collaboration features
Analyzed by Swipebot
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