Testing a new price without upsetting current members

Testing a new price without upsetting current members

Membergate Support -

You suspect your membership is priced too low, or perhaps too high for the people you want to reach. The trouble is that a price change feels irreversible. Raise it for everyone and some members will leave. Lower it and you lose revenue from people who were happy to pay more. So many owners do nothing and keep guessing.

There is a gentler way to find out. Test the new price on new sign-ups only, while every existing member keeps exactly what they have. You learn how real visitors respond to a different number, and nobody who already trusts you with their card has any reason to feel surprised or short-changed.

Why test on new sign-ups only

Existing members and new visitors are in completely different positions. A current member has a relationship with you and a price they agreed to. Changing it is a conversation about fairness and notice. A visitor has no price yet; whatever they see on your sales page is simply the price.

That makes new sign-ups the natural place to experiment:

  • Nobody loses anything they already had.
  • You can reverse the change quietly if it does not work.
  • You measure behavior, what people actually do at the checkout, rather than opinions about what they might pay.

If the test shows a higher price works, you can later decide separately whether and how to move existing members, with proper notice. The test and that decision are two different things.

Three ways to run a price test

1. Before and after

Change the price for all new visitors for a set period, then compare results with a similar period before the change. This is the simplest method and the fairest, because every visitor at a given time sees the same price. Its weakness is that other things change too, such as the time of year, your marketing or a mention somewhere that brought a burst of visitors.

2. Split testing

Show different prices to different visitors at the same time. This controls for timing, but it brings real risks for a membership: people compare notes in communities and on social media, and discovering that someone else paid less feels unfair. If you split test, keep the difference small, honor the lower price for anyone who asks and consider whether it suits your audience at all. Rules on how prices must be displayed vary by location, so check with a qualified professional if you are unsure.

3. Test a new option rather than a new price

Instead of changing your main price, add a new plan, such as an annual option or a higher tier, and see how many people choose it. This tells you a lot about willingness to pay without touching the price anyone relies on.

For most small memberships, the before-and-after method is the best starting point.

What to measure

A higher price will almost always convert slightly fewer people. The question is whether the extra revenue from each one outweighs the loss. Track these for both periods:

  • Visitors to your sales page and new sign-ups, so you can compare conversion.
  • New recurring revenue from those sign-ups.
  • Early retention: how many of each group are still paying after two or three months.
  • Refund requests and price questions, which show whether the new price is causing friction.

Early retention is the measure owners most often skip. A lower price can bring in more people who leave quickly, and a higher price can attract members who are more committed. If you run a free trial, look at how trial conversion changes too; measuring trial conversion explains how to track it.

A worked example

Here is an illustration with round, made-up numbers for a hypothetical membership for home bakers who sell at local markets, run by Callum. He currently charges $25 a month and tests $32 for new sign-ups over six weeks.

  • Before (six weeks at $25): 2,000 visitors, 40 sign-ups, $1,000 in new monthly revenue.
  • Test (six weeks at $32): 2,000 visitors, 34 sign-ups, $1,088 in new monthly revenue.

Fewer people joined, but revenue from new members rose slightly. Three months later, 31 of the $25 group and 29 of the $32 group are still paying. That is $775 a month from the first group and $928 from the second. The higher price is ahead, and the gap widened as time passed.

With numbers this small, treat the result as a strong hint, not proof. Run the test again, or for longer, before making a permanent decision.

Keeping current members comfortable

Current members may notice the new price on your sales page. Decide in advance what you will say, and say it warmly and plainly.

“Good eye! We’re trying a new price for people joining from now on. Your membership stays at $25 a month, exactly as it is. If we ever change the price for existing members, you’ll hear it from me well in advance, never from a sales page.”

A few other habits help:

  • Never test by changing the price at renewal or in the member’s billing page.
  • Do not run a price test at the same time as a promotion, which muddies both.
  • If the test price is lower, consider whether existing members paying more should be offered the lower rate; being generous here builds a lot of trust.

Your next steps

  1. Write down the price you want to test and the reason you think it might work better.
  2. Record your current numbers for a recent period: visitors, sign-ups and new revenue.
  3. Change the price for new sign-ups only, and leave it unchanged for a fixed period, long enough to gather a meaningful number of sign-ups.
  4. Prepare a short, friendly reply for members who notice the change.
  5. Compare conversion, new revenue, refunds and questions between the two periods.
  6. Wait two or three months and compare early retention before you decide.

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