Should we grandfather existing customers on their old pricing when we roll out a price increase or new pricing structure, or move everyone (even old accounts) onto the new pricing?

Based on the guidance in Price to Scale, there isn’t a one‐size‐fits-all answer. The book emphasizes the importance of segmenting your customer base and tailoring your approach when rolling out pricing changes. Here are the key takeaways:

• Segment and Evaluate:
• Assess how different groups of customers received your original pricing. For instance, some customers received significant discounts or negotiated unique terms, while others pay closer to the list price.
• Use this segmentation to decide whether to grandfather specific cohorts or transition them to the new structure gradually.

• Offer Proactive Alternatives:
• Instead of outright forcing all existing accounts onto the new pricing, consider offering creative alternatives. For example, you might provide an upgrade option, a discount contingent upon additional commitments, or even a tailored package that reflects the additional value of the new plan.
• This approach helps manage customer expectations and retains trust.

• Manage Company-Wide Changes Carefully:
• If you’re compelled to implement a company-wide pricing change—where all customers must eventually migrate—treat this as a dedicated change management project. This ensures that the transition is communicated clearly and that you can address different customer scenarios proactively.

In summary, our book “Price to Scale” recommends being thoughtful and transparent. It suggests that while you might retain previous rates for some customers, doing so should be part of a broader strategy that includes clear segmentation and the offering of compelling alternatives. The key is to stay upfront about the rationale behind the changes and to tailor the approach based on specific customer value and usage patterns.