[WA]

> Price increases on existing customers are pure margin.

Don't do this. Grandfather your old customers. Of course, it depends on the kind of business. But in B2C, customers can be price-sensitize and they don't (rightly so) understand why they should pay more for the same value they receive from a product.

> Now let’s assume we increase average prices by just 10% without losing any customers.

I chuckled.

[tpetry]

A nice way i have seen is grandfather your old users to the old price. But only users paying the new price are getting the new and shiny features. The product is not worsened for the old users. If they are really interested in the new features let them upgrade to the new pricing model with more features.

[lbriner]

Strongly disagree. Grand-facthering pricing sounds reasonable but is a nightmare for us.

As well as the technical issues with having to build in a load of complexity to maintain various features on different customer accounts, at some point there will be things that will change but customers will not accept that.

Most of our customer completely understand that they are paying for a service, not a product. Just because their features don't change doesn't mean it is costing us nothing to run the service.

Price gouging is morally dubious just because they are sticky but when you are selling a value-add (we could be saving you X employees per year) then it is reasonable to charge an amount of money as the OP says that customers are not as price-sensitive as you think.

[baxtr]

Re Grandfathering: That's really difficult to do in iOS Apps for example.

It also introduces a new level of complexity on many levels, e.g. rights and access management, product versioning and maintenance, customer support etc.

[garrickvanburen]

Losing customers is fine. I subscribe to Alan Weiss's perspective that purposely losing the bottom 10% of your customers is how you grow.

[blauditore]

Increasing price without any new features can be seen as greedy cash-grab and do damage to your brand which is hard to measure. Also, if you _do_ lose customers, will they come back if you backpedal and reset prices to the previous state?