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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on our SaaS pricing book, Price to Scale, it’s best not to simply grandfather existing customers on old pricing indefinitely without any plan for evolution. Instead, the guidance suggests a more segmented and proactive approach:
• Instead of a blanket, indefinite grandfathering policy, consider segmenting your customer base. Not every customer fits the same profile—some may use the product heavily, while others might be on a deep discount. Tailor your strategy based on usage, value, and the initial pricing conditions they received.
• Rather than keeping old pricing forever, you might set an expiration date or plan for a pricing review at a natural renewal point. This allows you to introduce updated pricing models aligned with new product enhancements or market positions while also offering alternatives. For example, you can proactively offer upgrades, bundled improvements, or structured discounts (often in exchange for longer-term commitments).
• The goal is to balance protecting long-term relationships with creating a new lineup that reflects your current value proposition. When customers who have only minor usage or lightweight feature needs are constantly compared to the same plans, it can be tempting to simply allow the old pricing to persist indefinitely. However, evolving your pricing strategy over time ensures that your pricing remains aligned with the broader market dynamics and the added value you continue to deliver.
In summary, our book Price to Scale recommends against keeping legacy pricing unchanged forever. Instead, use customer segmentation and transparent, well-communicated transitions—possibly including set expiration dates—to ensure your pricing reflects both the value you're offering and evolving market conditions.