Pricing is Your Most Powerful Lever
A 1%% improvement in pricing yields 11%% more profit—far more than improving acquisition or retention. Yet most SaaS companies spend less time on pricing than on their logo.
Popular Models
Per-seat, usage-based, tiered, and hybrid pricing each have trade-offs. The right model depends on your product’s value metric—the unit of measurement that best correlates with customer value.
Psychology of Pricing
Anchoring, decoy pricing, and charm pricing ($99 vs $100) significantly impact conversion rates. Test different presentations, not just different price points.