Spent the first eight months convinced the product was not converting because the price was too high. Kept it at $49 to stay accessible. Trial-to-paid was sitting around 8%.
Raised it to $299 as an experiment. Expected signups to drop. They did, by about 30%.
What changed: the customers who signed up at $299 were a completely different profile. They had a specific problem they needed solved, they had evaluated the product deliberately, and they were not shopping for the cheapest option. Average session time in the product went up. Support tickets went down. The customers who cancelled at $49 within three weeks stopped appearing entirely.
Six months later churn was roughly half what it had been at the lower price. The 30% drop in signups cost less revenue than the improvement in retention produced.
The thing nobody tells you about low pricing: it does not just attract more customers. It attracts a different kind of customer. One who is experimenting rather than committing. One who leaves when the next free trial appears. One who files a support ticket before reading the documentation.
Price is not just a revenue lever. It is the first filter your acquisition funnel runs on every visitor before they ever touch the product.