We changed AI pricing 3 times in a year: caps beat prices for churn, revenue +34%
Beneficial-Parsnip52 · reddit · 2026-10-30
A 4-person AI writing tool for real estate agents shares results from three pricing iterations this year:
- v1 (Jan): $29/mo unlimited. Great signups, but by March their 10 heaviest users cost more in API than revenue from the bottom 60% of users
- v2 (Apr): $29 for 500 credits + top-ups. Churn jumped from 6% to 11% in 2 months — users hated watching a number go down
- v3 (Aug): $19 base + generous included usage + customer-set usage cap. Churn back to 5%, revenue per customer up 34%
Key lesson: people don't hate paying for usage, they hate not knowing what they'll pay — the cap mattered more than the price. The billing infrastructure (usage tracking, overage, caps, alerts) required far more work than the pricing page; they're evaluating flexprice for v4.
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