Constantly discounting your main product trains customers to wait for sales and devalues your brand. Instead, splinter off a small component of your core offer and discount that piece heavily. This acquires customers and builds trust without cannibalizing the perceived value of your full-priced core offer.

Shipt identified markups, fees, and tips as a key driver of churn. Since tips and some fees were unavoidable, they strategically focused on eliminating markups—the one component of the cost structure they could directly control—to create a powerful competitive advantage.

By removing markups for premium members, Shipt's traditional Customer Lifetime Value (CLV) calculation became obsolete for this segment. This forced the company to fundamentally rethink how it defines and measures the value of its most engaged customers beyond per-order revenue.

A blanket price increase is a mistake. Instead, segment your customers. For those deriving high value, use the increase as a trigger for an upsell conversation to a better product. For price-sensitive customers, consider deferring the hike while you work to better demonstrate your value.

A low price can signal a low-quality or immature product, repelling enterprise or mid-market customers. Raising prices can make your product appear more robust and suitable for their needs, thus increasing demand from a more desirable—and previously inaccessible—market segment.

Instead of offering a fixed lifetime price (e.g., "$10/month forever"), offer a percentage or dollar amount off the retail price. This allows you to raise your base prices in the future to account for inflation or added value, while still honoring the discount for loyal customers.

Many subscription companies employ a "penetration strategy," pricing below cost to attract a large user base. Once loyalty is established, they leverage their pricing power to increase profits, shifting focus from pure growth to appeasing shareholders who now demand profitability.

Contrary to the common advice to 'just raise your prices,' you should first increase client volume until your delivery system is strained. This process proves your product's value and operational scalability, giving you the confidence and justification to command higher prices.

AI analyzes sales, operations, and media data to identify price elasticity across product bands. Brands can then increase prices on premium items where consumers are less sensitive, while keeping prices flat on essentials, thus protecting margins without alienating the entire customer base.