Define value and target segments
Begin by quantifying the business outcomes your software enables – time saved, revenue lifted or risk reduced. Talk to early adopters to capture the monetary worth they assign to those outcomes.
Group customers into clear segments (e.g., startups, SMBs, enterprises) and create personas that reflect differing willingness to pay. This segmentation will guide which features belong in each price tier.
Select a pricing model that mirrors usage
Common SaaS structures include tiered plans, usage‑based charges, freemium entry points and credit‑based systems that deduct units as features are consumed. Tiered plans work well when feature sets differ markedly, while usage‑based or credit models align price directly with consumption and are favoured by high‑growth firms (Stripe).
If you want to attract early users, a freemium or low‑cost starter tier can showcase core value and encourage upgrades, as demonstrated by Mercury’s approach to financial‑service SaaS (Mercury).
Build unit economics around the chosen model
Calculate the cost to serve each unit of usage – server time, support hours, third‑party licences – and set a credit or per‑unit price that leaves a healthy contribution margin. Clay’s credit‑based pricing kept the model transparent and tied revenue to actual product consumption, making it easy to scale from self‑serve to enterprise customers (Chargebee).
Run a simple spreadsheet: Revenue per unit minus variable cost per unit equals contribution margin; ensure the margin covers fixed overhead and leaves room for growth.
Test, iterate and refine
Launch with a minimum viable price structure and monitor key metrics such as churn, expansion revenue and average revenue per user. High‑growth companies frequently tweak pricing – adding throttles, adjusting credit burn rates or introducing new tiers – to optimise conversion and retain customers (Stripe).
Gather feedback from sales and support teams; they often hear objections that reveal price‑sensitivity gaps. Use A/B testing on plan names, feature bundles or credit bundles to see which combinations improve uptake.
Communicate clearly and monitor continuously
Publish pricing on your website with plain language, highlighting the value each tier delivers. Avoid hidden fees; instead, explain how credits work or how usage is measured so customers can predict spend.
Set up a dashboard that tracks plan adoption, credit consumption and lifetime value. Review the data monthly and be ready to adjust tiers or credit pricing before customers experience sticker‑shock.