Grandfathered Pricing

What is Grandfathered Pricing?

Grandfathered pricing refers to a pricing model where existing customers are allowed to continue paying the same rate for a product or service, while new customers pay a higher rate.

This approach is often used when a company raises its prices, either due to inflation or to reflect increased costs. By grandfathering existing customers, they can continue to receive the same level of service at the same price, while the company generates more revenue from new customers.

For example, a software company may offer a new pricing plan that is 20% more expensive than the current one. However, they may decide to grandfather existing customers, allowing them to continue paying the current rate.

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