Good SaaS pricing is built on three decisions: packaging (what's in each tier), the pricing metric (what you charge for — per seat, per usage, flat fee), and the price point (the dollar amount). Price to value, not cost: set your price between the next-best alternative (the floor) and the customer's perceived value (the ceiling). Choose a value metric that grows as the customer gets more value and is hard to game, then use a good-better-best structure where the middle "better" tier is your anchor and the premium tier runs roughly 2-3x it. Validate price points with real research — Van Westendorp for the acceptable range, MaxDiff for which features justify higher tiers — rather than picking numbers. Raise prices when conversion is very high (>40%), churn is very low (<3% monthly), or you've added significant value, and grandfather existing customers to soften it.
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See it in action
Help me figure out pricing for our new SaaS product. It's a customer support platform for e-commerce stores. We're not sure whether to charge per agent, per ticket, or flat rate. Currently thinking $49-199/month range.
Starter — $29/mo Up to 5 users · 10 projects · 5 GB · email support → Removes the barrier to entry for small teams Pro — $79/mo ★ Most popular (anchor tier) Up to 20 users · unlimited projects · 50 GB · API access · priority support → Where most customers land; full features, reasonable limits Business — $199/mo Unlimited users · 500 GB · SSO · audit logs · dedicated support → Premium tier at ~2-3x the anchor; captures high-value teams
FAQ
How do I figure out what customers will actually pay?
Use the Van Westendorp Price Sensitivity Meter: survey 100-300 target customers with four questions (at what price is it too expensive, too cheap, getting expensive, or a bargain) and plot the intersections to find the acceptable range and optimal price point. Pair it with MaxDiff to see which features justify higher tiers, benchmark competitors, and talk to real prospects. Segment results by persona, since willingness to pay differs across them.
Should I use freemium or a free trial?
Freemium works when the product has network effects, free users create value (content, data, referrals), and there's a clear limit that triggers upgrades. A free trial works better when the product needs time or setup to show value, is sticky once configured, or sells into B2B buying committees at higher price points. Requiring a credit card upfront raises trial-to-paid conversion (roughly 40-50% vs. 15-25%) but lowers trial volume.
How do I raise prices without losing customers?
Grandfather existing customers (or give a grace period), tie the increase to new value you've added, and announce it well in advance. Apply the new price to new customers immediately but give current ones time, and consider an annual-billing discount as a softening measure. Expect — and accept — some churn; the signals it's time include conversion above 40%, monthly churn under 3%, and "it's so cheap" feedback.
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