![]() ![]() Typically it’s to either increase revenue or adjust to the market costs (the total cost associated with providing goods or services) in their sector. There are many reasons why companies raise prices. Each factor needs to be considered individually and then as a whole to determine whether the price increase will actually benefit the business long term. There are a ton of factors that come into play when considering what, if any, is the best course of action. Raising prices, especially on a SaaS product where you’ve built a following, is never an easy decision. In this post I’ll dive in to our process for how we wanted the price increase to go, why we decided to build the extension program for existing customers, what went in to our communication strategy, and what the reactions were to the price increase, including looking at churn numbers. ![]() Oh, and a big reason for the delay was our main competitor leaving the consumer space, but more on that later. ![]() Why the long wait? We wanted to make sure that we did it right, not just mechanically (there’s a lot of billing code that has to change), but also in how we communicated to our customers and and took them through the process. What was announced in February 2019 actually started in December 2016, more than two years before the actual price increase would take effect. In February of 2019, we made the announcement that one month later, our prices for our Personal Backup and Business Backup services would be going up by $1: our first price increase for our Computer Backup service since launching the service over a decade ago. ![]()
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