Everyone says pricing is a growth lever.
In 2 years at BuddiesHR, we changed our pricing 3 times.
The last time, it nearly doubled our revenue.
Each time, same process:
↳ Roll out the new pricing to new users only
↳ Monitor the conversion rate
↳ If it holds, roll out to 20% of existing users
↳ If no major pushback, scale to the rest
Here's how it evolved:
1. $0.25 per employee/month (flat)
2. $0.50 per employee/month per app (we had 4 apps at the time)
3. $0.50 per employee/month for one app, $1 for the full suite
4. Today: $1 per employee/month, $2 for the full suite
I know what you think.
This sounds scary as f*ck.
It is.
But try it once, and it will become your new addiction lol.
Every time we pushed the pricing up, we feared conversion would drop.
It didn't.
Turns out, most founders undercharge.
Not because of the market.
But because of their own fear.
Now most users pick the $2 plan.
Because it's a no-brainer.
Because pricing frames perceived value.
And because if you're on a marketplace like Slack, you only get one shot to convert.
Pricing isn't a side topic.
It's not a detail.
It's a growth channel.
Treat it like one.
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👋 Hey, I'm J.Y!
I'm the co-founder of BuddiesHR, the #1 suite of Slack apps.
Using Slack? Give it a try, it's a no-brainer.
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