Actionable Frameworks and Next Steps

Having explored the principles, strategies, and common pitfalls of B2B SaaS pricing, it’s time to translate that knowledge into actionable steps. This section presents a step-by-step framework to help you design or refine your pricing strategy effectively. Additionally, we’ve included a pricing review checklist for founders to periodically ensure their pricing aligns with their goals. Think of this as your go-to toolkit for building a sustainable, customer-focused pricing strategy. Remember, pricing isn’t a “set it and forget it” task—it’s a dynamic process that should continuously adapt as your business evolves. These tools will give you the clarity and confidence to navigate that process.

Step-by-Step Guide to Designing a Pricing Strategy

Creating a pricing strategy can feel overwhelming, but breaking it into manageable steps makes it more approachable. Below is a comprehensive framework to guide you:

Step 1: Define Your Customer Segments and Value Metrics

Begin by clearly identifying your target customer segments. For each segment, determine what they value most about your product and how they measure that value. Is it time saved, revenue generated, or the number of users benefiting? This will help you identify a potential value metric.

For example:

• For an email marketing SaaS, the value metric could be the number of contacts or emails sent.

• For a project management tool, it might be the number of projects or active users.

Write down 1–2 value metrics that best align with your product’s impact on customer success. This will form the foundation of your pricing structure (e.g., per user, per contact, per GB, or a combination).

Step 2: Research and Positioning

Conduct thorough market research. Analyze competitors and alternative solutions—how are they priced, and what do their customers typically spend? While you don’t need to copy their model, understanding the landscape helps you position your product effectively.

Decide how you want to position your offering:

• Are you a premium option delivering unparalleled value?

• A cost-effective alternative?

• Or something entirely unique?

Ensure your pricing level (low, mid, or high) reflects this positioning. Also, consider your sales model: will your pricing be transparent for self-serve customers, or customized for enterprise deals?

Step 3: Choose Your Pricing Model and Structure

Using the insights from your value metrics and customer segments, select your pricing model. Options include:

• Tiered pricing: Different plans with increasing features or limits.

• Usage-based pricing: Charging based on consumption.

• Hybrid models: Combining feature-based tiers with usage limits (common in SaaS).

Draft a structure for your pricing. For example:

• Basic: $50/month for up to 3 users.

• Growth: $200/month for up to 10 users with advanced features.

• Enterprise: $500/month for up to 25 users with premium support.

Consider if you need a freemium model or free trial to attract early users and reduce adoption barriers.

Step 4: Set Price Levels

With your pricing structure defined, determine the actual price points for each tier or unit. Use a combination of:

• Bottom-up analysis: Cover costs and achieve desired margins.

• Top-down analysis: Ensure customers see a clear ROI and align with competitor benchmarks.

If possible, survey existing or beta customers to gauge their willingness to pay. Test initial price points with a few customers and refine based on feedback. Start conservatively if unsure—it’s easier to increase pricing for new customers later than to lower it drastically.

Ensure price differences between tiers are proportional to the value offered. For instance, if the Enterprise plan costs 3× as much as the Growth plan, it should deliver approximately 3× the value (e.g., through more features, users, or services).

Step 5: Simulate and Project

Run hypothetical scenarios to test your pricing strategy. For example:

• What would a 5-person startup pay under this model?

• What would a 50-person company pay?

Verify that the pricing aligns with customer expectations and your financial goals. If most early customers are small businesses, ensure your entry-level pricing is sustainable. Additionally, check whether the gap between tiers encourages upgrades without being too wide or too narrow.

Step 6: Get Feedback on the Draft

Share your pricing concept with trusted stakeholders—such as customers, advisors, or team members. They may identify potential issues, such as:

• “Tier 2 seems more attractive than Tier 3—why would anyone choose Tier 3?”

• “This pricing is hard to understand—can we simplify the value metric?”

Use this feedback to refine your strategy before launching it publicly.

Step 7: Communicate and Implement

Once finalized, roll out your pricing across all customer touchpoints, including your website, marketing materials, sales scripts, and billing systems. Communication is key:

• For existing customers (e.g., transitioning from a free beta), notify them well in advance, emphasizing the value they’ll receive and offering any special transition deals.

• For new customers, ensure your pricing is transparent and easy to understand.

Train your sales and support teams to handle common questions, such as:

• “What happens if I exceed the limit?”

• “Which plan is best for me?”

Step 8: Monitor and Iterate

Your pricing strategy isn’t static—monitor its performance and adjust as needed. Track key metrics, such as:

• Conversion rates.

• Average revenue per user (ARPU).

• Churn rates by pricing tier.

Gather qualitative feedback from customers to identify confusion points or areas for improvement. For example, if a high-demand feature is locked in the top tier, consider moving it to a lower tier to drive adoption.

Plan to revisit your pricing strategy every 6–12 months, or more frequently in the early stages. Use A/B testing to measure the impact of changes on new signups.

Pricing is an iterative process—by continuously refining, you’ll develop a model that balances customer value with business growth.

Pricing Review Checklist for Founders

By following this framework and leveraging the checklist, you’ll create a pricing strategy that works in the real world—driving growth, satisfying customers, and scaling with your business. Pricing is a continuous journey, and by staying attuned to your customers and the value you provide, you’ll position your SaaS for long-term success.



Stay Caffeinated & Keep Closing

Powered by Veles

P.S. Got a burning sales question or a negotiation nightmare keeping you up at night? Submit it HERE and we’ll tackle it in a future edition.