The Hidden Cost of Underpricing Your Subscription – Patrick Rills, Lose It!
Sub Club by RevenueCat
Outro
Closing remarks, a hiring shout for iOS developers at Lose It!, and podcast sign‑off by David Barnard.
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:
💰 Retest prices you've already ruled out
Market conditions shift constantly. A price point that couldn't beat the control for years can suddenly break even as competitors raise prices and consumer expectations change.
📈A higher base price unlocks more aggressive discounting Going from $40 to $80 creates room for steeper percentage discounts that drive higher conversion, even when the absolute dollar price is still higher.
🔒Rising CACs demand pricing that funds acquisition At $40/year, paid UA math barely worked. Doubling the price gave the marketing team room to compete on acquisition channels where costs keep climbing.
About Patrick Rills:
🚀 Chief Product & Technology Officer at Lose It!, the app-based weight loss program mobilizing the world to achieve a healthy weight.
Follow us on X:
- David Barnard - @drbarnard
- Jacob Eiting - @jeiting
- RevenueCat - @RevenueCat
- SubClub - @SubClubHQ
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
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