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How a men’s grooming brand used Starlight to increase prices without losing trust
Results
Overview
Faced with tariff-driven cost pressures and early signs of price sensitivity, a top subscription razor brand turned to Starlight to assess the revenue and retention impact of potential price increases. Their challenge: protect margins without spiking churn or stalling growth.
Challenge
New import tariffs were poised to raise cost of goods sold by 12%, threatening to erode gross margins by 8 points.
At the same time, churn had crept to 4.5%—above their 3% target—and MRR growth had slowed from 7% to 4% month-over-month.
With profitability on the line, the brand needed to model the price elasticity of its core segments and forecast outcomes across various pricing paths.
Solutions & Insights
Starlight combined digital intelligence, competitor pricing audits, qualitative interviews, and discrete-choice conjoint analysis to build a robust pricing sensitivity model. Key findings revealed that the majority of subscribers would tolerate a 7% price increase with minimal churn, while premium-tier users could absorb even more. Value-seekers, however, showed sensitivity beyond 3%.
To soften perception of increases, we recommended that they test bundle strategies—we found that a free post-shave balm trial offset fairness concerns for 72% of users and reduced churn risk. The pricing model guided a phased rollout with strategic bundling, enabling the brand to raise prices while protecting retention.
A controlled pilot confirmed the model: churn held steady at 4.6%, and ARPU rose by $1.20. Scaled company-wide, the approach is projected to generate $5.6M in incremental MRR while preserving over $3M in revenue that would otherwise be lost to churn.
“Chris and his team gave us the clarity to raise prices confidently without alienating our customers. Their modeling helped us thread the needle between margin and loyalty.”
— Head of Finance, Confidential Brand
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