The Art of Raising Prices Without Sending Customers Running for the Hills

Insight from How To Succeed

Baremetrics raised their prices by 250%. Not 25%. Not 50%.

Two hundred and fifty percent.

Their monthly recurring revenue leaped from $200K to $300K, even while customer churn doubled. I know what you're thinking: "Doubled churn? That's terrifying." Every pricing playbook tells us to avoid losing customers at all costs.

But what if playing it safe is exactly what's holding companies back?

Let's look at three real price increases that shatter the conventional playbook:

The Baremetrics Revelation

After nine years without touching their prices, Baremetrics had built a large customer base but simultaneously created a problem. Their product had evolved from basic metrics to a full analytics suite, yet they were charging 2016 prices for 2025 capabilities.

When they finally raised prices, their churn numbers would make most founders break out in hives. Monthly churn jumped from 4% to 7%. Traditional pricing wisdom would call this a disaster. But here's what actually happened:

• Revenue jumped 50% ($200K to $300K MRR)

• Support tickets decreased

• Their remaining customers were more engaged

They didn't just make more money. They discovered who truly valued their product.

The StatusPage Experiment

StatusPage took a different route that proved equally revealing. Over two years, they systematically increased prices across their tiers:

• Starter plan: $49 to $99

• Premium tier: $199 to $399

• Some power users saw 8x increases

The impact was undeniable: their average revenue per user soared 140%. But raw numbers don't capture the most fascinating part. Each price increase functioned as a silent referendum on value.

Instead of sending out another customer survey that would gather dust, StatusPage learned through their customers' actions.

Those who stayed went beyond merely being willing to pay more. They were the customers who had truly integrated StatusPage into their operations.

The Slack Precision Play

In 2022, Slack made what looked like a modest move: a 9% increase on their Pro plan. For a company their size, even small pricing changes affect millions in revenue. Their announcement revealed three key insights:

• They gave 6 weeks' notice

• Offered renewal at old prices

• Focused the message on product evolution

What These Companies Actually Learned

I've spent weeks studying these price increases, and the most fascinating part isn't in the numbers – it's what happened in customers' heads.

Baremetrics discovered that their most vocal customers weren't always their most valuable. Some who threatened to leave over the 250% increase had been using basic features and consuming support resources like they owned the company. When they left, support tickets dropped while revenue soared.

StatusPage's gradual ascent taught them something different. Each price step separated their casual users from their power users.

Most revealing was that many customers who initially resisted higher tiers eventually upgraded themselves. Not because StatusPage pushed them, but because they'd grown dependent on the product. The price increase simply made them confront how central StatusPage had become to their operations.

Slack's seemingly modest 9% bump revealed the deepest insight of all: timing matters more than percentage. By offering early renewal at old rates, they created a natural segmentation of their customer base.

Enterprise customers jumped at the chance to lock in pricing, revealing their long-term commitment. Others barely noticed the increase, showing just how embedded Slack had become in their daily operations.

The Real Lesson: Price Increases Tell the Truth

Strip away the spreadsheets and revenue graphs, and you'll find something deeper here. These weren't just pricing changes. They were moments of truth for thousands of business relationships.

Baremetrics learned that losing the right customers can strengthen your business. StatusPage discovered their product had become mission-critical without them fully realizing it. And Slack found out which customers were building their futures around their platform.

Look back at that 250% increase we started with. It reads like madness on paper. But it wasn't just about dollars and cents – it was Baremetrics finally standing up and saying "This is what we're worth." And giving their customers the chance to agree or disagree.

Some relationships ended, but the ones that remained grew stronger.

In pricing, as in life, sometimes the hardest conversations lead to the healthiest relationships.