Yes, that is a massive increase, and I'm sure a few will baulk...

Yes, that is a massive increase, and I'm sure a few will baulk at increases of that magnitude. The sales and marketing team will be getting immediate feedback from customers though, and should be able to adjust the offering according to the critical tolerances in the market. I just hope hubris hasn't set in and they're listening to the feedback

Clients like your friend obviously have more cost effective alternatives, some will, others won't. I don't know whether nea are over estimating the stickiness of the product or recognise and have accounted for a certain level of attrition.