tag:blogger.com,1999:blog-18867375.post8258796325081293320..comments2023-05-21T13:20:47.722+02:00Comments on The Angel VC: The Case for GrandfatheringChristoph Janzhttp://www.blogger.com/profile/07905463949262014311noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-18867375.post-55895128921942988162014-08-14T12:13:17.651+02:002014-08-14T12:13:17.651+02:00great article - literally working on a startup and...great article - literally working on a startup and considering this very topic. Thanksdaverocksnoreply@blogger.comtag:blogger.com,1999:blog-18867375.post-87664312114519349532013-05-06T16:27:41.455+02:002013-05-06T16:27:41.455+02:00Interesting read. Increasing the price of SAS mode...Interesting read. Increasing the price of SAS models intrigues me and I've taken a large SAS product through a few significant price increases and fully grandfathered in both cases. We crunched many different scenarios before doing it but in general just felt the risk related to forcing a price increase on existing customers was just too big (we were dealing with a relatively mature product though).<br /><br /><br />Two other positive things to remember that come as a result of grandfathering with a freemium / subscription model (depending on how you do it).<br /><br /><br />Announce the price increase early and you will find many free users of the product lock themselves in at that lower price point. Its a good incentive to subscribe as they think they are getting a deal.<br /><br /><br />If you put in a grace period (i.e if you drop back to free for longer than 7 days you then have to go onto the new, higher price point) it has a positive impact on long term retention as customers will tend to leave their subscription running to avoid having to pay the higher price point at a later date (even if mathematically it doesn't make sense).<br /><br /><br />The other thing I would say is showing a clear step change in the product is important, particularly if it is a mature product. If you are raising the price, you need to show you're either upping the offering or investing more heavily in things to come.Daniel Cloughhttp://twitter.com/daniel_cloughnoreply@blogger.com