Repricing the product: +60% ARPU

Situation

A SaaS company billing ₽7M a month was leaving money on the table: price had long fallen behind the product's value. The average contract sat at ₽25K a month — far too low. Management was afraid to raise prices, certain customers would walk. Meanwhile pricing had gone untouched for three years while the product pulled ahead.

Diagnosis and approach

We took the funnel apart and found the root cause: free-tier conversion (4%) was sagging because the trial gave away too much — there was no reason to upgrade to a paid plan. During the trial, customers simply never hit the ceiling of the free version.

That led to a hypothesis: rebuild pricing around the real value delivered to the customer, rather than around a familiar price list.

Solution

Value analysis

We ran interviews with 10 customers: how much money the product saves them, how much it earns them. The picture was unambiguous — the average customer ROI was 5:1: the product returns five times more value than customers pay for it.

Reworking the pricing model

We split the single ₽25K plan into three tiers: Basic at ₽15K, Pro at ₽50K, Enterprise custom. Smaller companies now enter through the base plan, while larger ones pay according to their size.

Optimizing the free tier

In the free tier we kept only the core features and moved everything else behind paid plans. Customers hit the ceiling sooner — and upgraded to paid versions faster.

Communicating value

For each plan we described the value, not a list of features: "Boosts your productivity by 30%" instead of "CSV data export".

Result

ARPU rose from ₽25K to ₽40K: customers moved en masse to the Pro plan. Free-tier conversion climbed from 4% to 12% — the ceiling on the free version did its job. MRR added ₽4.3M (from ₽7M to ₽11.3M). We left existing customers untouched: their prices stayed on their original plans, with no retroactive recalculation.

If this sounds like your situation, take a look at how we do it as a service: improving margins.