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SE Ranking•Apr 2025 - Present•2 min read

Repricing to Create a Business

Senior Technical Product Manager - API

Raised prices 50% ($99→$149). Added enterprise tiers. 100+ logos in 6 months

APIPMFB2BData

TL;DR

Raised base price 50% ($99 → $149), added enterprise tiers with 100-300M credits, and redesigned packaging. Result: 100+ logos in 6 months with sustainable unit economics.

Context

Initial API pricing at $99 was too cheap. It resulted in low MRR, attracted price-sensitive customers who churned quickly, and didn't signal enterprise-grade quality.

Problem

  • $99 price point attracting wrong customer segment
  • Low MRR despite decent customer count
  • No clear path from self-service to enterprise
  • Price didn't reflect product value
  • Enterprise customers had no appropriate tier

What I Did

  1. Customer Analysis: Segmented existing customers by usage, retention, and willingness to pay
  2. Competitive Analysis: Benchmarked pricing against comparable API products
  3. Value Metric Design: Defined credit-based pricing that aligned with customer value
  4. Tier Architecture: Designed tiers that created natural upgrade paths

Key Decisions

50% Price Increase

Raised base price from $99 to $149. Counterintuitively, this improved conversion by signaling quality.

Credit-Based Tiers

Moved from feature-based to usage-based pricing with clear credit allocations:

  • Base tier: Standard credits
  • Mid tier: Higher credits + priority support
  • Enterprise: 100-300M credits + dedicated support

Enterprise Path

Created clear upgrade path from self-service to enterprise, with dedicated account management for high-value customers.

Pricing Structure

| Tier | Price | Credits | Support | |------|-------|---------|---------| | Starter | $149/mo | Standard | Email | | Growth | $299/mo | 2x | Priority | | Enterprise | Custom | 100-300M | Dedicated |

Results

50%
Price Increase
100+
Logos in 6 Months
Improved
Unit Economics
  • Landed enterprise accounts with sustainable unit economics
  • Higher-quality customers with better retention
  • Clear upgrade path driving expansion revenue

Lessons Learned

  1. Price signals value: Too-low pricing hurt us. Raising prices attracted better customers.
  2. Align price with value: Credit-based pricing meant customers paid for what they used.
  3. Create upgrade paths: Enterprise tier captured customers who outgrew self-service.
  4. Don't fear price increases: Existing customers accepted the increase; new customers never knew the old price.