Raise prices without churn

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that need stronger margin and stable renewals.

The quick answer

Segment accounts by strategic value and risk. Set increase bands with reasons tied to outcomes you deliver. Give notice and offer options such as a term commitment or a value bundle. Have leaders call top accounts. Anchor a new list price and use a phased increase if needed. Track renewal risk weekly until changes settle.

The method in nine steps

Segment accounts
Classify A B and C by revenue, margin, growth potential, and health. This guides where to protect and where to reset.
Create increase bands and reasons
For example three percent, five percent, and eight to ten percent. Reasons include improved service levels, higher input costs, or expanded scope. Keep reasons true and easy to explain.
Raise list price first
The list is the anchor. Update price pages and cards. Align discounts to the new list so baseline margin lifts.
Set guardrails and trades
No discount without value back. Allowed trades include a longer term, prepayment, larger commitment, or a higher tier bundle.
Prepare key account offers
For A accounts pair the increase with value that matters to them. Faster response, a success workshop, or an add on that reduces total cost.
Communicate with notice
Send changes thirty to sixty days before renewal. Say what and why and what stays the same. Include options to lock price for a term or to earn a credit with a commitment.
Enable your team
Provide a talk track, objection answers, and a calculator that shows value versus price. Practise before calls.
Run a weekly control tower
From announcement through sixty days review renewal pipeline, at risk accounts, and exceptions. Log reasons and decisions so the story stays consistent.
Fix systems and contracts
Update quoting, contract templates, and billing. Spot check first invoices.

Example

A services firm targeted a five percent average increase. Top twenty accounts received three percent paired with premium response. The next tier moved to five percent with term lock on prepay. The long tail moved to eight percent with a value bundle. Net revenue retention reached one hundred and eight percent and churn stayed under three percent.

Pitfalls and fixes

Across the board increases with no reason. Attach a reason and proof.
Surprises at renewal. Give notice and executive calls for A accounts.
Trading value without a trade back. Require term, prepay, or scope.

Checklist

Accounts segmented and bands set
New list price and fences published
Trades defined and talk tracks ready
Notices sent and executive calls booked
Weekly control tower calendar setQuarterly check and two change windows booked
Segment level data ready
Margin bridge built
Test plan set with a clear success line
Team enablement assets updated
Four week rollout review plan in place