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.
- How do we set our first price?
- Per seat or usage-based?
- Should we copy competitors' prices?
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
- Ask five to ten best-fit customers what the problem costs them today in time or money.
- Pick a value metric that rises with their success.
- Create two or three tiers for clearly different customer types.
- Set prices so your target customer pays a small share of the value they get.
- Test with new prospects and watch win rate and discounting.
| Value metric | Fits when | Risk |
|---|---|---|
| Per seat | Value grows with users | Customers limit seats to save money |
| Usage-based | Value tracks volume | Unpredictable bills |
| Flat tiers | Simple products, small buyers | Leaves money on the table with large customers |
| Hybrid | Platform fee plus usage or seats | More 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.
- 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.
- 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.
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.
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 →Skok ties pricing to unit economics: price has to support a CAC you can recover in about 12 months or less.
Read the guide →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.
Read next
Go deeper in the ShoutEx guides, or check the original sources.
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.