In 22 years I've never raised prices on existing customers. Have you?
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In all 22 years of running my business, I’ve never raised prices on my existing customers.
My philosophy has always been to price a little below the competition, make the product better, and the customers will come to you. That's how I've made it this long.
Normally, for me, it means taking the cost of not trying hard enough on your customers. And if you're selling the product, there's no need to increase the price.
If I ever did raise prices, I think I'd keep all of my existing customers at their current price and only charge the new price to new customers.
I know many other founders do not see it this way, so I would love to know. Have you ever raised prices on existing customers? What made you decide to do or not to do it?
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Not yet, but the product is weeks old, so that's no virtue. What I can add is the subscription-app side of it. On the App Store and Google Play you can raise the price for new subscribers and leave existing ones where they are, and I think that's the only version I'd ever use. A subscriber who gets a "your price is going up" notice doesn't compare the two prices. They just get reminded they're paying, and some cancel who never would have otherwise. So even if you ignore the fairness argument, the math is against it.
Curious about your 22 years: did staying a bit under competitors ever backfire, as in customers reading the lower price as lower quality?
Oh wow great for you and your customers, especially the ones that have stuck around. This builds a lot of trust and loyalty.. wish every business was like this 👀