Raising Prices: A Scary Decision That Paid Off

Three months ago, I pulled the trigger on something that had been sitting in the back of my mind for months: I raised prices for DocsBot.

DocsBot pricing plans

Not just a token increase either. I cut our lowest plan completely and bumped the price of our primary ICP plan by 50%. For a founder, it’s one of the scariest moves you can make. Your mind instantly goes to the worst‑case scenarios:

  • What if customers leave in droves?
  • What if growth stalls?
  • What if we miscalculated the value our customers actually see?

But I also knew that the lowest plan wasn’t serving our business or our customers well. It attracted the wrong profiles—ones that cost more in support than they delivered in value. Meanwhile, our ICP consistently told us that the tool was saving them thousands through AI‑powered customer service. So I decided it was time to test whether the pricing was truly aligned with the value we provide.

The Results

DocsBot metrics after the price change

Three months later, the numbers speak louder than any fear I had going in:

  • Active subscribers: –2.6%
  • MRR: +12.5%
  • Churn rate: –14.7%
  • ARPU: +15.5%
  • Customer lifetime value (cLTV): +35.4%

Yes, subscriber count dipped. But MRR rose. Churn improved. ARPU jumped. And lifetime value surged — which changes the entire growth equation.

The Grandfathering Strategy

We chose not to force existing customers to the new pricing immediately. That shift will come next year. But something surprising happened: about 15% upgraded on their own.

Why? Feature gating. We started rolling out new features only to customers on the new plans. It wasn’t about punishing old users, but about rewarding the ones aligning with where the product is headed. The result: natural, voluntary upgrades without pressure.

Soon, we’ll launch an early upgrade campaign alongside more gated features that add real value, making the decision to switch even easier.

Why It Worked

The biggest lesson here: the right customers don’t balk at higher prices if the value equation is obvious.

Our ICP isn’t buying “software” — they’re buying outcomes. If a product saves them thousands, a 50% price bump barely registers. And by shedding misaligned customers, we can serve our best customers better.

The higher cLTV also opens a new lever: CAC. With stronger unit economics, we can confidently spend more to acquire even better customers, knowing they’ll stick around longer and return more value.

My Takeaway

Making the decision was far harder than living with the outcome.

Pricing is emotional for founders. It feels like you’re putting a price tag on your worth. But ultimately, it’s about alignment. When you line up pricing with the true value you deliver, everyone wins: customers get results, the business gets healthier, and you as a founder can grow without the constant fear of fragility.

This was one of the scariest steps I’ve taken with the business. And it turned out to be one of the most clarifying.