Today we've increased the price of two of our starter plans and we would like to show you the changes and explain why we've made them. But before we do that please note these pricing changes only apply to newly started plans which means if you're already subscribed to either of the plans we've increased prices on you will remain on the previous plan pricing.
In the above image you can see we've increased the price of our first starter plan by $1 and our second starter plan by 50 cents. The reason we've increased these plan prices is because while these starter plans are by far the most popular plans we offer they do not generate a lot of revenue for the business.
We have to acquire 50 customers at $1.99 each to bring in the same revenue as a single customer at $99.99 but those 50 customers take up a lot more of our human resources due to the high support needs they generate. So to help offset these support costs we have decided to increase these plan prices.
Another solution we considered was reducing the starter plan size from 10,000 to 5,000 daily queries but we found most of the users purchasing the $1.99 plan still fell under 5,000 daily queries and so it wouldn't solve the problem of our high support costs vs revenue generated by those users. In short, they would be unlikely to upgrade their plan to access more queries.
Price increases are not something we ever want to do as it heightens the barrier to use our service but in this case our business needs dictated this change be made. And of course these new prices only apply when you begin a new plan, users already subscribed will not be subject to the increased pricing while their plan remains active.
Thank you for reading and we hope everyone is having a great start to the new year.