Pricing Strategy: How Incremental Increases Boost Revenue
Published on Sep 23, 2025
Tibo
@tibo_maker·Sep 4
Replying to @tibo_maker
We launched Tweet Hunter at $9/month.
Seemed smart.
"More people can afford it!"
Every few months, we raised prices incrementally.
$9 → $19 → $29 → $39 → $49
Expected: angry customers, mass churning.
Reality: revenue exploded faster than churn.
Tibo from Tweet Hunter started at $9/month. Seems smart, right? Cheap, accessible, everyone can buy. But then they raised prices: $19, $29, $39, $49. Instead of chaos and churn, revenue went up faster than cancellations.
Why it works
- Low prices attract bargain hunters, not loyal users.
- Higher prices signal higher value.
- Quality customers stick around longer.
- Each price bump filters your audience to people who actually care.
Real-world examples
- Netflix hikes rates regularly and still grows.
- Basecamp doubled prices and saw minimal churn.
- ConvertKit raised from $29 to $49 tiers, boosting MRR.
- Apple never discounts and dominates profit margins.
Raising prices isn’t scary when value matches. It’s often the fastest way to grow without adding more customers.
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