The test: Invoice processing automation (Gmail → Parse → Sheets)Pitched to 50 similar companies, 10 at each price point.
Results:
$99/month:
- Close rate: 60%
- Churn in 3 months: 83%
- Support requests: 47/month
- Profit: -$200 (support killed me)
$299/month:
- Close rate: 50%
- Churn: 50%
- Support: 22/month
- Profit: $400
$599/month:
- Close rate: 40%
- Churn: 25%
- Support: 8/month
- Profit: $1,600
$999/month:
- Close rate: 30%
- Churn: 0%
- Support: 3/month
- Profit: $2,400
$1,999/month:
- Close rate: 20%
- Churn: 0%
- Support: 1/month
- Profit: $3,800
The insanity: Higher price = LESS support needed.$99 clients question everything.$1,999 clients trust the process.
Currently moving everyone to $999 minimum.
Has anyone else tested this? What did you find?