We rolled out a 2x price increase across SMB tiers Tuesday morning after months of "we're underpriced" discussions. By Friday close-rate dropped from 22% to 13%, and inbound qualified leads down 40%.
What I'd love help with: was this just packaging, or did we touch the third rail of price elasticity? Anyone been here?
Two questions before anyone gives you advice:
Nine times out of ten the second one is the killer. Reps who don't believe it leak in micro-discounts and hesitation that the prospect smells in 30 seconds.
Grandfathered everyone existing. New price only on net-new. And honestly — yeah, my AE told me on Thursday she felt "weird" quoting it. So that's probably half the story.
Run the math on lost-deal value: if your close rate dropped from 22→13% but ACV doubled, you're still net positive at the same lead volume. The "40% pipeline drop" might be a leading indicator artifact — prospects taking longer to enter pipeline because the ask is bigger. Don't unwind in week one.
+1 to Omar. Give it three full sales cycles before you call it. The first two weeks of any pricing change are noise.
Holding the line then. Will report back in three weeks with the actual numbers — appreciate the gut-check, both of you.