On the podcast: testing prices from $5 all the way to $120 per year, why rising CACs forced a pricing rethink, and how raising the price allows them to discount more aggressively.

This conversation is shorter than usual and will be featured in RevenueCat’s State of Subscription Apps report. Each episode in this series will explore one crucial topic and share actionable insights from top subscription app operators.

Top Takeaways:

💰 The hidden cost of underpricing is that you can’t afford to grow
Keeping prices low for years can feel safe, but as customer acquisition costs rise, a low price point makes it impossible to scale paid marketing and get the ROAS you need.

📈 A higher price point unlocks more aggressive discounting
Doubling your price from $40 to $80 gives you significantly more room to offer steep discounts (like 50% or 75% off), which can be a powerful psychological lever to drive conversions.

🔒 Grandfathering existing users is a powerful way to de-risk a price increase
Instead of forcing a price increase on loyal subscribers, grandfathering them at their original price can reduce churn, build goodwill, and avoid the risks of a confusing and hard-to-test App Store price change UX.

About Patrick Rills:

🚀 Chief Product & Technology Officer at Lose It!, the app-based weight loss program mobilizing the world to achieve a healthy weight.

👋 LinkedIn

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RevenueCat - @RevenueCat
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Episode Highlights:
[0:00] Introduction to Patrick Rills, Chief Product & Technology Officer at Lose It!
[1:05] How pricing changes unlocked new growth opportunities at Lose It!
[2:12] Balancing customer acquisition costs (CAC) with retention through pricing strategy
[3:25] Key insights from years of price testing, ranging from $5 to $120 per year
[4:42] Raising prices to enable deeper discounting and improve conversions
[5:58] Aligning product value with pricing to retain loyal users
[7:06] The role of the freemium model in keeping users engaged after price increases
[8:02] Using smart pricing and AI to drive growth
[9:14] Leveraging data to fine-tune pricing decisions
[10:27] How customer feedback and product data shape pricing strategies
[11:38] Challenges and benefits of raising prices for an established product
[12:33] Future plans for pricing tiers and new monetization strategies
[13:18] Patrick shares iOS developer hiring opportunities at Lose It!
[13:41] Final thoughts on driving sustainable growth and user value

The Hidden Cost of Underpricing Your Subscription – Patrick Rills, Lose It!

Sub Club by RevenueCat

The Hidden Cost of Underpricing Your Subscription – Patrick Rills, Lose It!