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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 advisable to test price increases with new (or at least a broader group of) customers rather than solely with existing ones. Here’s why:
• Existing customers are already familiar with your current pricing and product positioning. They’re often predisposed to purchase at a lower price, which can skew feedback if you only rely on their reactions.
• Our book highlights the risk of testing only on the website visitors or existing customers. As noted, those who visit your site because they know your product are more likely to buy it at a lower price, meaning you won’t capture the true price sensitivity of a broader market.
• Testing with new customers gives you a clearer picture of market demand. It helps determine if a higher price point can attract a different group of potential buyers who are not already anchored to a discounted or lower price.
In summary, to gauge a realistic market response for a price increase, our book recommends casting a wider net beyond your existing clientele. This approach ensures that you are measuring genuine willingness to pay rather than relying solely on favorable responses from a captive audience.