How SellRaze boosted revenue per user by 10% with a lower annual price

SellRaze is an AI-powered, cross-platform selling app that helps users ID, price, and list items for sale across multiple marketplaces. The team needed to find the most profitable rate for their annual subscription plan, crucial for securing high customer lifetime value (LTV). SellRaze ran a price comparison test using Superwall to find the best rate.

The challenge

SellRaze needed help deciding how to price their annual subscription:

• Price elasticity. The team wanted to see if lowering the price of the annual plan would encourage enough new subscriptions to offset the reduction in price.

• Hypothesis. They hypothesized that a slightly lower, more accessible annual price would boost conversion, leading to increased Average Revenue Per User (ARPU).

• Decisive data. They needed Superwall's accurate, persistent cohort tracking to prove the financial viability of the winning price point.

The solution

SellRaze used Superwall to conduct an annual price A/B test:

• Control paywall. Featured the annual plan priced at $59.99 per year.

• Variant paywall. Featured the annual plan priced at $44.99 per year.

• Identical otherwise. Everything else on the paywall, including the monthly plan price, the 3-day free trial structure, and copy, remained the same.

The results

The experiment proved that for SellRaze's audience, the lower price point was the clear winner:

• Revenue increased. The variant with the $44.99 annual price resulted in a 10% increase in Average Revenue Per User (ARPU).

• Lower price worked. They confirmed that the lower price point successfully offset the price reduction with increased revenue.

• Optimal price validated. The results justified moving the annual plan to the lower price point, securing more high-value users.