Dear SaaStr: What is a Good Approach For Price Increases with SMBs?

According to SaaStr founder Jason Lemkin, raising prices for small-business SaaS customers requires a careful balance. SMBs are highly price-sensitive, so aggressive increases risk customer churn. Lemkin recommends avoiding price hikes early in a product's lifecycle and instead building pricing increases into your long-term growth plan. The key: transparency with customers and clear communication about added value before implementing changes. Timing and customer communication matter more than the percentage increase itself.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton