Switched to a flat pricing model for my SaaS last quarter and revenue actually dropped 22%

Everyone says flat pricing simplifies things and attracts more customers, but I ended up losing all my power users who needed the higher tier features. Has anyone else seen the opposite happen when they tried simplifying their pricing structure?

2 comments

2 Comments

abby_henderson6d ago

Did you also get the fun surprise where your "simplified" plan turned into a discount for the people who barely use your product? I switched to a flat rate for my thing and suddenly all the power users who were paying extra just stayed quiet, while the cheap seats cheered. My revenue graph looked like a kid drew it after a nap - a straight line down. What happened when you told your high-tier folks they could get all the features for the same price as the basic tier?

harperwright5d ago

Stopped reading at "revenue graph looked like a kid drew it after a nap." That's brutal but also weirdly accurate. I had to double check my own numbers after reading that because I thought maybe I missed something. The part that gets me is how the high-tier folks just went silent. You'd think they'd be thrilled, but instead they're probably wondering why they ever paid extra. It's like you gave them a discount for being loyal customers and they still didn't appreciate it. My revenue took a similar nosedive and I'm still trying to figure out how to make it flat again.