Have other SaaS companies regretted certain pricing changes or had them go wrong (like a big customer backlash), and what lessons can we learn to avoid similar mistakes when we change our pricing?

Below is a summary of what our pricing strategy book, Price to Scale, shares on the topic:

• Yes, several SaaS companies have faced challenges and even regrets after making pricing changes that led to customer pushback or operational issues. For instance, companies have seen a backlash when:

- Changes were implemented too quickly without giving enough time for usage tracking and customer understanding, as noted in Price to Scale where a six‑month to one‑year ramp up is recommended for significant pricing updates.
- The revised pricing wasn’t properly aligned with contractual terms and revenue recognition rules, resulting in billing disputes or legal complications.
- The pricing structure became overly complex, leading to customer confusion and an increased volume of customer care inquiries.

• Lessons to avoid similar mistakes include:

- Thorough Preparation: As highlighted in our book, planning pricing changes over an extended period (6–12 months) helps manage the transition. This includes carefully tracking how customers use your product and feeding that feedback loop into improving the new pricing model.
- Cross-functional Alignment: Engage teams from legal, contracts, billing, and revenue recognition to ensure the entire structure—from quoting to invoicing—is synchronized and protected from operational strain.
- Customer Communication: Make sure that customers understand changes in pricing. Having clarity in the contract and providing resources to address their questions can help mitigate backlash.
- Internal Coordination: Bring together product, sales, and customer support teams early in the process since each group may have different perspectives on how changes will impact revenue and customer relationships. This alignment helps in anticipating and addressing concerns before they escalate.

In summary, our book Price to Scale emphasizes that the key to successfully changing pricing while avoiding regrets is a well-planned, cross-functional approach that carefully considers operational details, customer communication, and internal alignment. This methodical foundation minimizes the risk of backlash and sets your pricing strategy up for sustainable success.