Pricing Strategy Success: When Raising Prices Reduces Churn
Updated on
Tibo
@tibo_maker·Sep 4
People: Don't raise your prices or customers will churn.
Tweet Hunter: $9/month → $49/month
Result? Churn went DOWN 🤯
Same product. 5x revenue per customer.
Here's the REAL pricing lesson that changed everything:
Tibo from Tweet Hunter pulled a pricing move that broke all the rules. He kept raising his SaaS prices — from $9 to $49 per month — and guess what happened? Churn went down.
Why this works
- Price filters customers. Cheap customers bail faster because they’re less committed.
- Higher price = higher perceived value. Paying more makes people treat it as an investment.
- Better margins = better product. More revenue funds better support and features.
- Confidence sells. Raising prices signals belief in your product’s worth.
Real-world examples
- Netflix increased prices and average revenue per user still went up.
- Apple’s higher iPhone prices drove record profits, not drop-offs.
- ConvertKit doubled pricing during a rebrand and retained top creators.
- Basecamp’s one-price model built loyalty among serious business users.
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