Is it fair or common to limit how long someone can stay on a grandfathered plan (for example, telling legacy customers that after 2 years on the old pricing they have to switch to the new plans), or do most companies let them stay indefinitely?

Based on our pricing strategy framework in Price to Scale, it’s both fair and not uncommon to limit how long customers can remain on a grandfathered plan, provided you design the transition thoughtfully and communicate clearly.

Key points to consider:

• It’s common practice to offer a grace period under the old pricing, such as renewing at the legacy rate for an additional year. This approach gives customers time to adjust before transitioning to the new pricing structure (see our discussion around “grace periods” in Price to Scale).

• Some companies use a phased approach—like GitLab’s multi-year ramp deal where customers gradually adjust to higher prices over time. This can reduce the shock of a sudden change and help build acceptance for the new rates.

• Limiting the grandfather period can protect your business from leaving substantial revenue on the table from new, higher-value customers. It also encourages legacy customers to eventually move to updated packages that better reflect the current value of your product.

In summary, while some companies allow legacy pricing indefinitely, Price to Scale shows that a carefully managed time-limit—paired with clear communication and customer segmentation—can be a fair, effective strategy. This approach ensures that both your customers and your business can adapt to evolving market conditions.

Get Started with Pricing-as-a-Service

Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.