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February 1, 2024

3 Steps for Simple SaaS Pricing

3 Steps for Simple SaaS Pricing

Today, we’re talking about pricing and for most Software as a Service companies pricing should be quite simple. Here’s how to do it.

1. Pricing tiers

Keep it simple with a max of 3 pricing tiers. Don’t be tempted into giving customers incremental control and add-on options. That increases complexity and reduces revenue.

2. Bundle Usage & Features

Encourage upgrades by coupling both increased usage allowances and premium features; don’t limit the ways customers can pay you more.

3. Start with a High Price

Most founders undervalue their service by a large margin. Start with what feels like a high price. You can always offer discounts for annual commitments.

Best of luck out there.

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Ash Rust

Ash Rust

Managing Partner, Sterling Road
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