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Why we raised our prices from $4 to $9 per month?

Recently, we got a lot of things done in Gaurilla based on the feedback we got from Early Bird users. And after four months into the public beta phase, we raised our prices from $4 per month to $9 per month.

Yes, we kind of came out as jerks to a lot of you but, there’s a reason that made it the best decision for our company and for our paying users.

NOTE: For those of you, who signed up when the price was $4, you’ll still be paying $4 only (if you subscribe to the paid plan post your trial period). Nothing evil with you, as promised. It is for our new users that this new prices will take effect.

Why did we do it?

Well, there are a few reasons.

Reason #1. It acts as a filter.

We used to have flocks of new users every week earlier. After the price raise, we saw a drop of around 20% in new sign-ups. But we are happy. We are a small company and supporting huge number of new customers with getting their accounts set up was a huge task for us. And often, we saw that a lot of people used their accounts actively only in the free trial period. When I contacted them to understand what made them not to switch to paid plan and if we could do anything about it, I often got something like this in response:

“Gaurilla is awesome. I mean, really awesome. I have recommended it to a lot of my friends too. But my requirements are not that large. If you could have a free plan with limited features, it would have been great.”

That’s what we didn’t want. Serving an app for free would have made us evil – we might have sold the data to some analytics company, we might have started showing ads, we have spilled “Gaurilla” branding over everything, we might have done some really ugly stuff that we never wanted to do.

Of course, we never had a free plan (only 30-day free trial), raising our prices made the filter work better by only attracting people who would find real value in the app. And as stated on the website, we give away discount coupons (ranging from 10% to 25% discount) to our active users through Twitter. Just ask for one.

Reason #2. Competing on price isn’t called competing.

You offer your product for 50% less than your competitors and people prefer you over them. Victory! Well, no.

Competing on price is never a good option. Your competition can offer a cheaper plan overnight and you’re screwed. Tightly. Anything that can be overpowered overnight isn’t an advantage. Or competition, so to speak.

We started with the cheaper price than most of our competitors but only because we were new. We wanted a lot of people to see our product, use it and give us feedback. We kept the price low to keep the barrier minimum during our first few months, until the product became more mature, which now it is.

Reason #3. Higher costs

With new features (like Basket) and the way Gaurilla is evolving, the running cost has gone up. And we are a bootstrapped company too (that is, no big guy with huge piles of cash behind us). We keep running the company by the money that our loyal customers pay us happily in exchange of the value they extract out from Gaurilla.

So, we had to raise our prices a little to make sure that we don’t run out of cash quickly and that we keep running to serve our customers for a long time. Nothing gives us more pleasure more than seeing our happy customers. Heaven!


We have came a long way since we started out to build an app that should be must-have for every small and medium business. We had our assumption in the beginning and we had our fair share of lessons.

The most important lesson that we learnt in our journey thus far is that competing on price is not a competition. Once the lesson was ingrained in our minds deeply, we shifted our focus from a-lot-of-users-paying-low-fees to if-not-a-lot-then-some-users-finding-the-app-very-valuable. This simple shift in the focus made us work toward increasing the value of the product (and not just by decreasing the prices).

Our early birdies will still be on our $4 plan but new prices apply to all the new users hence forward. New users can ping us on Twitter (@Owlgrin) to get some discount coupons, though. :)

Shut UP!

No no no! Don’t get me wrong. I ain’t being rude. Well, in one sense, I am. But in a good way. Bear with me and I’ll explain you what I mean.

I am a big believer of executing plans at this very moment. I mean – now! Because, well.. isn’t ‘now’ all that we have really? If you want to travel, go book a ticket now. Yes, that kind of execution. I don’t like putting off things for tomorrow. If you really want to reap rewards of something, you have to go through the reality that precedes the rewards.

I know you had some really awesome plans for 2013 in December last year. Didn’t you? If you say No, you are lying. We all had. Let’s take a minute and review the state of those plans today – a year later.

If you have done what you wanted to do, well you deserve a hug from Santa Claus this Christmas. And if he doesn’t come to hug you, tweet me once and I will come to hug you dressed as Santa. ;)

But, if you aren’t the one deserving a hug from Santa, let’s try to get it next year. What do you say?

So, as 2013 is about to get over, let’s decide this one thing – let’s ShutUP! No no, not just our mouths but our excuses too. At least for this year. Let’s shut up and get to doing things rather than just planning about them. We spent the whole of 2013 planning and thinking. We kept thinking, “I want to have that car” or “I want to have that house” or even nerds like me thought “I want to lose weight”.

Let’s stop making excuses and get to doing things. And I too will go out and join a gym now. Let’s stop “I want…” this year and instead do something so that we can sing “I did…” next year, the same time. And often, as you must be knowing, it doesn’t take much, just a start.

To get you a little more excited, Owlgrin is starting a campaign to push you to do something this year. After all a hug from Santa deserves some effort. With the ShutUP! campaign, let’s stop making excuses and start doing things. Let’s shut up the part of brain that is responsible for telling us to put things off till tomorrow. Let’s shut up our ears to the people who say that our plan isn’t possible. Let’s shut up the little frightened guy inside us that makes us weak when we are about to make big decisions.

Let’s shut up and start up! Let’s be doers this year.

And by ‘start up’, I mean to start doing things. It is not necessary for you to start a company to get a Santa Hug. Or, if you want to really start up, this year is good to fire your boss too.

And then probably you did something this year too. Maybe small, maybe big. And no matter how big or small, if you did something, the effort more often than not, does deserve a reward.

Because you weren’t one of those who kept talking. You ShutUP and you StartedUP. Perhaps it was starting taking up the guitar classes, perhaps it was finally getting that excursion into your schedule and going ahead with, or perhaps it was asking out the girl of your dreams. :)

Whatever it was, that you think you did this year and are thankful to yourself that for once you did shut the excuses and gave it a try, we want to hear from you! And… we’ll look forward to send you a reward, because know it or not, you have been an inspiration. :)  

All you have to do, is tell us how you ShutUP (the excuses and the talking) and StartedUp (with the real thing), as a comment on this Facebook update –

Three lucky commenters get free Tees, Mugs and more! Note that to qualify for winning the “Doer Goodies” you have to press the like button on our page so that we can stay in touch with you. :)

So comment here right away – and tell us your #ShutUpAndStartUp story! We look forward to hearing from you. :)