Price and package a product

Recommendation: raise agency pricing, not every user to $19

Launch segmented plans in January 2027. Keep freelancers at $15 per user; price agencies for the collaboration and CRM features they use. Priya’s 27% figure is the gross increase if every account stays: it does not account for cancellations or lost conversions.

Keep the 14-day free trial. Use seat count as the default plan guide, with sales able to recommend the right fit where an account’s needs differ.

Why this structure

• Freelancers show the clearest risk from a blanket increase. In Q3, 9% of freelancer trials became paying customers, versus 31% for small agencies and 37% for larger agencies. Of paying freelancers, 38% cancelled in month two, compared with 6% of small agencies and none of the larger agencies. A higher entry price could compound an already weak conversion and retention picture.
• Survey responses support different price points by segment. Freelancers typically start to feel price pressure around the mid-teens; agencies report much higher thresholds. The proposed $19 Team and $25 Business prices remain well below the survey’s typical “getting expensive” levels for agencies. Treat the survey as directional, not a guarantee of willingness to pay.
• Agency packaging reflects observed value. Agencies use the shared library, approval workflows, and CRM sync; freelancers mostly use one template and e-signature. The Q3 account sample also shows much heavier proposal activity in agencies. Charging more for agency collaboration and integration is more defensible than charging every freelancer more for features they may not use.
• Sales evidence argues against relying on price increases alone. Recorded losses include freelancers choosing free tools and agencies choosing PandaDoc; many no-decisions stayed with their current process. Price objections appear, but are not the dominant story in these records.

Move existing customers carefully

1. New customers: Apply the new plan prices from January 2027.
2. Existing freelancers: Keep them on Solo at $15. Do not force a price increase or a feature downgrade.
3. Existing agencies: Give each account its recommended plan, explain the feature mapping, and grandfather its current access for 12 months. Provide at least 60 days’ notice before any price change; for annual customers, change pricing at renewal, not mid-term.
4. Phase agency increases: Cap each renewal increase at 20%, with a clear schedule to reach the recommended list price within three renewals. Let customers adjust seats or select a lower plan before renewal; do not remove access unexpectedly.
5. Review before scaling: Track trial conversion, second-month cancellations, agency churn, and downgrade requests by segment. Revisit prices after two quarters rather than assuming the sample or survey predicts the full customer base.

The 150-account export is a random sample, not a forecast. The proposed prices are a testable segment-based starting point; blanket repricing would add avoidable freelancer risk.

Pricing and packaging proposal

Recommendation: Don't move everyone to $19. Price by segment, and keep freelancers at $15. A single $19 price fits none of the segments well. It is too high for freelancers, who are already churning and losing to free tools, and far too low for agencies, who will pay more and use the most features.

What the data says

• Freelancers are most of our accounts but little of our revenue. They are 81 of the 150 sampled accounts but only $1,215 of $11,670 MRR (10%). A move to $19 adds about $324 MRR here. Meanwhile 38% of paying freelancers cancel in their second month, and 12 of 18 lost deals went to Google Docs and a free e-signature tool. In the survey, freelancers' median "getting expensive" price is about $15, and roughly one in six put it at $19 or higher. $19 puts them in the zone where they start shopping.
• Small agencies (2–10) can absorb more. Their second-month cancellation is 6% and trial conversion is 31%. Their median "getting expensive" price is about $37, and "too expensive" is about $50. $19 leaves most of that headroom unused.
• Agencies (11–50) are the most underpriced at $19. They show 0% second-month cancellation and 37% trial conversion. Their median "getting expensive" price is about $55, and "too expensive" is about $80. They use the features that justify a higher price: shared content library, approval workflows, and CRM sync.
• Price is a smaller loss driver than it looks. Only 4 of 12 lost freelancer deals raised a price objection. None of the 6 lost small-agency deals went to a free tool. Losses are mostly about competitors and "no decision," not price alone.

Proposed plans

Every plan keeps the 14-day free trial.

Existing customers

• Solo (freelancers): No change, no migration, no notice needed.
• Team: 60 days' written notice. Move to $20 at the January renewal, then $25 at the first renewal after July.
• Business: 60 days' notice. Move to $24 at the January renewal, then $32 at the first renewal after July.
• New customers: List prices from January.

The two-step migration caps the first-year increase at about 33% for Team and 60% for Business. Anyone who objects gets a conversation with sales before renewal, not an automatic downgrade.

Revenue (150-account sample: 778 seats, $11,670 MRR)

The 27% is simply $19 ÷ $15. It assumes no churn and no change in mix. The proposal's gain comes mostly from agencies, not freelancers.

Risks and what to validate first

1. Survey data is stated preference. Willingness-to-pay surveys usually overstate what people will actually pay. The Team and Business numbers are plausible but unproven.
2. The sample is small. It is 150 accounts, and the file doesn't show annual versus monthly billing, so I can't tell how many renewals each price change will hit.
3. Business vs. Team gap. The gap is only $7. If Business customers mostly use shared library and approvals and rarely CRM sync, they may trade down.
4. Freelancer conversion. If Solo stays at $15, the funnel is protected, but we give up the small freelancer upside. I'd accept that trade.

Before the January announcement: run a four-to-six-week test on new small-agency and agency trials at the Team and Business prices. Track trial conversion, second-month cancellation, and win rate against PandaDoc. If the test holds, announce the tiered plans. If conversion drops sharply, adjust Team first, since it has the most accounts.

Decision needed from Priya: approve tiered pricing in place of the flat $19, and approve the 4–6 week test on new trials.

Inkwell pricing and packaging proposal

To: Priya Nair | Proposed launch: January 2027

Recommendation

Do not move everyone to $19. Keep a $15 solo offer and introduce a $25/user agency plan. Launch for new customers in January, subject to validation; migrate existing agencies gradually.

Your 27% calculation is correct only with unchanged paid seats. At $19, losing 21.1% of seats eliminates the uplift. The evidence supports differentiated pricing—not equal increases for customers with very different needs.

What the evidence says

• Agencies drive revenue. The random account sample contains 80 freelancers, 50 small agencies and 20 larger agencies. Agencies represent 47% of accounts but 90% of sample MRR: $10,605 of $11,805.
• Freelancer acquisition already struggles. Trial conversion is 9%, versus 31% for small agencies and 37% for larger agencies. Second-month cancellation is 38%, 6% and 0%, respectively. The last figure covers only 22 paying accounts, so is not evidence of zero underlying churn.
• Price tolerance differs. Median surveyed “getting expensive” prices are $15 for freelancers, $31 for small agencies and $51 for larger agencies. These are directional signals, not measured purchase probabilities or optimal prices.
• Price is not the only problem. Only 6 of 160 recorded deals show a price objection. Freelancer losses go to Google Docs plus free e-signature; agency losses go to PandaDoc. Sales records may underrepresent self-serve price sensitivity.
• Workflows justify packaging. Freelancers mainly use one template and e-signature; agencies use the shared content library, approval workflows and CRM sync. Sample quarterly sending ranges also differ: 3–12 proposals for freelancers, 18–63 for small agencies and 95–287 for larger agencies.

Proposed plans

USD, monthly billing; retain the 14-day trial.

No proposal-volume caps or signature fees at launch. Charge for internal users; recipients/signers are free. One plan applies across an account.

Keep seats as the billing metric: it is familiar and the survey tested per-user prices. Differentiate through collaboration capabilities rather than taxing successful contracts. Signed contract value indicates customer value but is neither collected revenue nor value attributable solely to Inkwell.

Do not launch a third tier yet. Larger agencies show more price headroom, but the files do not establish a distinct premium feature bundle. Validate that opportunity separately rather than inventing enterprise functionality.

Keeping Solo at $15 avoids worsening a fragile funnel; cutting its price is also unsupported. Test activation improvements before assuming price causes freelancer churn.

Revenue implications

Illustrative repricing of the sample, not a company forecast:

These scenarios assume all sampled agency accounts use Team, freelancers remain, and no other changes. Actual revenue depends on cancellations, seat reductions and plan selection. The final uplift arrives after migration, not in January. Without cost data, this is not a profit forecast.

Existing-customer migration

1. Give at least 60 days’ notice, with each account’s current bill, transition bill, final bill and dates. If that notice cannot precede January, delay existing-account changes.
2. Existing freelancers stay at $15, retaining currently included capabilities as legacy entitlements. New Solo customers receive the published bundle. Do not remove capabilities customers already rely on.
3. Existing agencies move to $19/user at their first eligible renewal, then $25 after six months. Honour any contractual commitments and communicate both steps upfront. Preserve all existing functionality.
4. Provide account-level outreach for larger agencies and a seat-review tool before renewal. Never interrupt in-flight proposals, signatures or access to signed documents.

Validate before broad rollout

Before January, test $25 Team against the current $15 offer in segment-stratified new-trial cohorts. Measure 60-day retained revenue per trial, conversion, cancellations and seats—not initial conversion alone.

Require higher retained revenue per trial and no more than a proposed three-percentage-point deterioration in agency second-month cancellation before expanding. Extend testing if samples are inconclusive.

Stagger existing-account migration with a temporary unchanged-price comparison group. Monitor retained revenue and seat contraction through both price steps; pause the next cohort if revenue underperforms the comparison group. January should be a controlled launch, not an irreversible announcement.