.png)
Estd 4.22.2023
Below is a summary answer based on our saas pricing book, Price to Scale:
• The book emphasizes that big pricing changes aren’t “flip‐a-switch” decisions. In our experience, we’ve typically given any major change about six months to a year so that you’re not overreacting to early metrics fluctuations.
• It’s important to have in place robust systems to track usage, customer feedback, and legal/rev rec implications before rolling out—and potentially rolling back—a pricing change. For instance, we’d build frameworks (like an updated pricing calculator for the reps) that let you adjust quoting processes and monitor how the change is received.
• That said, if a metric like conversion rate plummets and you see a sustained, clear negative signal that isn’t a temporary hiccup, the book advises a careful reexamination. It isn’t always about an immediate rollback but rather about a structured review with your product, legal, and sales teams to determine the underlying issues—be they technical, operational, or simply misaligned customer expectations.
• Regarding a specific story: one case study in Price to Scale notes that an initial pricing repackaging took months to gain traction. While there were bumps along the road, the lesson learned wasn’t to snap back to the old model immediately but to tweak the supporting processes (such as sales compensation and quoting tools) so that the new pricing could be properly adopted. Here, the key takeaway was that sustainable pricing adjustments require patience, iterative learning, and cross-functional collaboration.
In summary, while you shouldn’t rush to roll back at the first sign of trouble, you must have a clear process and timeline for reassessment. Continuous monitoring and iterative adjustments—not abrupt reversals—are what drive long-term success in pricing changes, as outlined throughout our book, Price to Scale.