Value-Based vs Cost-Plus
Cost-plus: cost + margin.
Value-based: charge what value is worth.
SaaS should be value-based.
Cost is often small vs value delivered.
Willingness to Pay
What would customer pay if had to?
Van Westendorp method for research.
Higher than you think usually.
Test with actual prices.
Pricing Metrics
Per user: common but limits growth.
Per usage: aligns with value.
Per outcome: rare but ideal.
Flat rate: simple, undervalues heavy users.
Common Metrics
Users/seats.
API calls.
Contacts stored.
Emails sent.
Storage used.
Choose one that scales with value.
Tiered Pricing
3-4 tiers optimal.
Feature differences clear.
Middle tier: most people should choose.
Not: 10 tiers with confusing differences.
The Anchor
Highest tier: makes middle look reasonable.
Enterprise: ‘contact us’ works.
Even if few buy top tier, it anchors.
Include one ‘aspirational’ tier.
Free Tier Decision
Freemium: users can stay free forever.
Free trial: time-limited full access.
Neither: enterprise sales only.
Different implications.
Annual vs Monthly
Annual: 15-25% discount typical.
Higher retention, better cash flow.
Monthly: easier to try.
Offer both usually.
Price Testing
Not for existing customers.
New signups can be A/B tested.
Legal complexity – be careful.
Grandfathering existing at old prices.
Price Increases
Legitimate reason: added value.
Grandfathering existing (safe).
New pricing for new customers.
Sometimes: increase for existing (risky).
Discounts
Never discount at list price.
Discount for annual commit.
Discount for volume.
Discount for social proof (case study, testimonial).
Not: because customer asks.
The Fear of Overpricing
Founders often underprice.
Sign of low confidence in value.
Underpricing = you can’t afford to serve well.
Better to be too expensive than too cheap.
Underpricing Signals
Everyone says ‘yes.’
No pushback on price.
High close rate.
These signal room to raise.
Overpricing Signals
Deal length increases.
Many objections about price.
Churn on price.
Discounts frequent.
These signal need to adjust or add value.
Common Mistakes
Following competitors blindly.
Not raising prices as value grows.
Overly complex pricing.
Discounting to close deals.
Not testing price.
Enterprise Pricing
Custom, not published.
Based on account potential.
‘Land and expand.’
Multi-year commits.
Different sales motion.
Our Framework
Start with value hypothesis.
Test with real prospects.
3 tiers to launch.
Adjust based on data.
Raise as value grows.
Based on Real Projects
This guide is based on our work with:
Further Reading
If this guide helped you, you might also want to read our comprehensive guide on Custom SaaS Development.
רוצים לדבר על הפרויקט שלכם?
שיחת ייעוץ חינם, ללא התחייבות - הרעיון שלכם + הניסיון שלנו
רוצים לדבר על הפרויקט שלכם?
אנחנו מתמחים בפיתוח SaaS, פתרונות AI, עיצוב UX/UI ובניית אתרים. ספרו לנו מה אתם צריכים.
דברו איתנו ←