[jakelazaroff]

I don’t think the point of this price hike is to profit off of non-rational customers. I think it’s likelier that they expect and maybe even hope that they’ll lose customers.

Let’s say a full 50% of Canva’s customers eventually churn because of this. They’re raising prices 3x, so they’d still make 1.5x their previous revenue. And they’d make even more profit, because their customer support costs have been cut roughly in half.

Meanwhile, the 50% of customers who dropped are now on the market for a new design tool — and a big hole has just opened in the low end of the market. So it’s good for competition, too!

Of course, if 80% of Canva’s customers leave, that’s bad for them. It’s a gamble! But in general, increasing prices by Nx in hopes that you’ll retain at least (1/N)x customers is a totally reasonable strategy.

[barrell]

How much are you lowering the satisfaction of those users though? Sure you may end up with more cashflow, but a much smaller, less eager group of users to be promoters.

The point of this is imho likely to boost the numbers as much as possible prior to IPO at the expense of the UX, brand, and by extension product

[jakelazaroff]

Sure, that’s part of the gamble. But for what it’s worth, I‘m pretty skeptical that raising the price like this will lower the satisfaction of existing users, especially if the remaining ones are mostly businesses.