Experimented with a 4x Price Increase - and it was the best decision ever!

Hello IndieHackers Community.

Posting here after long time. I wanted to share a small update/experiment.

Last December, we decided to increase pricing for Dorik by 4x for new customers starting in January.

Here's why we decided to increase pricing:

• We wanted to focus on fewer high-value customers rather than a high volume of low-value customers.
• We wanted to reinforce that customers will stick around because of the value our platform provides, not because we're the cheapest option.
• The increase brought us closer to our competitors' pricing. Even at 4x higher, our price is still lower than most alternatives.

Implementation and Grandfathering: To transition smoothly and retain the trust of our existing customer base, we grandfathered them into their current old pricing. This move was essential to honor our commitment to those who had supported us early on.

At first, we faced backlash from some of our longtime users who felt the increase was a mistake and would kill our company.

However, we expected to lose around 50% of new paid customers, but the other 50% would cover the lost MRR. But the actual results surprised us all.

After one month, we only lost just around 15% of new paid customers. Which tripled our MRR growth from new customers. We are doing even better in February and getting new paid customers at the rate of previous pricing. Now we are wondering why we didn't do it months or years earlier.

Of course, drastically raising prices is risky and controversial. But when taken for the right reasons, the rewards can be fantastic. Just be sure to grandfather existing users!

Let me know if you have any other questions about our experience with this significant pricing change. I'm happy to share what we learned.