SaaS Pricing Strategies 2026: Complete Guide for Founders
Pricing can make or break your SaaS business. Based on TBPN podcast discussions with successful SaaS founders, here's how to price strategically in 2026.
Most founders underprice initially, leaving money on the table. Good news: pricing is highly iteratable. Start somewhere reasonable, test, optimize based on data.
Pricing Models
Per-seat pricing: $X per user/month. Simple, predictable. Works for collaboration tools. Example: $15/user for team tool.
Tiered pricing: Multiple plans (Starter, Pro, Enterprise). Most common. Captures different customer segments. Example: $29/mo, $99/mo, $299/mo.
Usage-based: Pay for what you use. Popular in 2026. Aligns cost with value. Example: $0.10 per API call.
Freemium: Free tier + paid upgrades. Drives acquisition but low conversion (2-5%). Example: Free for 100 contacts, $49/mo for more.
Flat rate: One price for everyone. Simple but leaves money on table. Example: $99/mo unlimited.
Value-Based Pricing
Charge based on value delivered, not cost to provide. If you save customers $10k/month, charge $2k/month. They still save $8k—easy ROI. Don't price based on development costs. Price based on customer value.
Pricing Psychology
Anchor high: Show expensive plan first, makes others seem reasonable.
Decoy pricing: Middle tier designed to make top tier look good.
Charm pricing: $99 vs $100 feels significantly cheaper psychologically.
Annual discounts: 15-20% off locks in revenue, reduces churn.
Finding Your Price
Research competitors: What do similar tools charge? Don't copy, but establish range.
Customer interviews: "At what price seems too expensive? Too cheap to be good? Expensive but worth it?"
Value analysis: How much value do you deliver in $/time saved/revenue generated?
Start high: Easier to lower prices than raise them. Can always discount.
B2B vs B2C Pricing
B2B: Higher prices ($50-500+/mo), longer sales cycles, enterprise plans ($1k-10k+/mo), annual contracts common.
B2C: Lower prices ($10-50/mo), self-service signup, monthly billing standard, higher churn.
Enterprise Pricing
Don't publish enterprise pricing. "Contact us" allows negotiation based on: company size, features needed, support level, contract length, volume. Enterprise deals: $25k-500k+ annually.
Pricing Experiments
Test pricing with: A/B tests on new visitors, grandfathering existing users, regional pricing differences, promotional pricing for segments. Measure impact on: conversion rate, LTV, churn, revenue per customer.
Founders optimizing pricing, often working in their home offices, find small changes can dramatically impact revenue according to TBPN discussions.
Common Pricing Mistakes
Underpricing from fear ("nobody will pay more"), too many tiers (confuses customers), feature-based differentiation instead of value, not charging for support/training, free trial too long (30 days standard, not 60+).
When to Raise Prices
Indicators it's time: high conversion (>5% visitor-to-paid), low churn (<5% monthly), customers say "that's it?", adding significant value, market maturity increasing.
Grandfather existing customers (goodwill) or give notice period. New customers pay new rates immediately.
Packaging and Positioning
Name tiers by outcome, not features: "Startup," "Growth," "Scale"—not "Basic," "Premium," "Enterprise."
Lead with value proposition, list features that deliver that value, show clear differentiation between tiers.
The TBPN SaaS Community
The TBPN community includes many SaaS founders sharing pricing insights: don't compete on price, charge for value delivered, test and iterate constantly. Connect with SaaS founders wearing TBPN mugs discussing pricing strategies.
Conclusion
Good pricing captures value you create for customers. Start with value-based approach, choose model that fits your product, test and iterate. Most founders underprice—you probably can charge more than you think. Pricing is never final—optimize continuously as you learn.