Client question · Positioning and go-to-market

How should I price a SaaS product?

Most early SaaS companies underprice. A simple method gives you a defensible first price and a way to raise it.

Answered by the ShoutEx team · Updated October 2026 for 2027 planning
How clients ask it
  • How do we set our first price?
  • Per seat or usage-based?
  • Should we copy competitors' prices?
The ShoutEx answerSenior operators, no account managers
✓ Answer

Price on the value your customer gets, not your costs or a competitor's page. Pick a value metric that grows as the customer gets more from the product, such as seats, records or usage. Build two or three tiers around clear customer types, set the entry price from what your best customers would pay to solve the problem, and test it with real buyers before you publish.

A practical method

  1. Ask five to ten best-fit customers what the problem costs them today in time or money.
  2. Pick a value metric that rises with their success.
  3. Create two or three tiers for clearly different customer types.
  4. Set prices so your target customer pays a small share of the value they get.
  5. Test with new prospects and watch win rate and discounting.
Value metricFits whenRisk
Per seatValue grows with usersCustomers limit seats to save money
Usage-basedValue tracks volumeUnpredictable bills
Flat tiersSimple products, small buyersLeaves money on the table with large customers
HybridPlatform fee plus usage or seatsMore complex to explain

Signs you are underpriced

Almost no one pushes back on price, you win most deals you reach, and customers describe the product as essential. Raise prices for new customers first.

Watch out for
  • Cost-plus pricing for software.
  • Copying a competitor's price without their positioning.
  • A value metric that punishes usage.
  • Discounting by default.
  • Never raising prices after launch.
Good signs
  • Price anchored to the value customers describe.
  • A value metric that grows with success.
  • Two or three tiers for real customer types.
  • Win rate and discounting tracked.
  • A price review every year.
Stats, results and discussion

What founders and researchers say

We read the threads, surveys and reports so you don't have to. Each card is our summary, linked to the source.

Redditr/SaaS

Founders in SaaS threads often report raising prices with little effect on win rates. The common lesson: early pricing is usually too low.

Browse the threads →
For Entrepreneurs (David Skok)SaaS Metrics 2.0

Skok ties pricing to unit economics: price has to support a CAC you can recover in about 12 months or less.

Read the guide →
GartnerGartner, 646 B2B buyers, 2026

With 67% of buyers preferring rep-free buying, clear pricing and packaging do more selling than they used to.

Read the release →

Community summaries describe recurring themes across many threads. They are not quotes from individual posts.

Same question in your company?

Bring your numbers. We'll tell you what we would do, even if it isn't us.

Book a call →

Follow-up questions

Should we offer a free plan?

Only if free users spread the product or convert at a rate that pays for them.

How many tiers should we have?

Two or three for most B2B SaaS. More creates confusion.

When should we raise prices?

When win rates stay high and customers rarely push back. Raise for new customers first.

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