Technique · Hooked
Raise prices with added value and grandfathering
Habitual users are less price-sensitive, which leaves room to raise prices. Tie each increase to visible added value, protect loyal users with grandfathering or long notice, and test elasticity by engagement segment first.
Plain label: value-tied price riseAlso known as: pricing power, price increase, grandfathering, price elasticity, price-pain test
How it works
Dependence lowers price sensitivity, so a price rise hurts habitual users less than casual ones; investors even judge a business by how painful raising prices would be. Using that power without new value, or springing it on loyal customers, turns pricing power into backlash.
How to build it
- B2B
- Announce the new price with the features added since the last change, and keep current customers on their price for a year.
- Mobile
- Grandfather existing subscribers and apply the new price to new sign-ups.
- Web
- Test the change on new visitors first and compare conversion and early cancels by segment.
What can go wrong
- Price rises with no added value.
- Short notice for loyal customers.
Pairs well with
- Make stored value visible.
- Track cancellations by engagement segment.
In practice
Where it shows up
Limits
What we don’t claim
- The Hook Model is a practical design tool, not a validated or complete theory of behavior.Hooked, Introduction
Sources
Hooked · Nir Eyal
Ch.1
Source IDs: HK-MON03
Book content is paraphrased, never quoted at length. Last verified October 24, 2026.
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