A pricing table with different tiers and features.

The Practical SaaS Pricing Playbook for Founders

Pricing is the most-feared and least-understood part of building a SaaS. Founders either copy competitors or anchor too low, leaving massive revenue on the table. This is a step-by-step playbook to get your V1 pricing right.

  • 1. Step 1: Identify Your Value Metric

    Don't price based on features. Price based on the value your customer receives. Your value metric is the 'per something' you charge for (e.g., per user, per 1,000 API calls, per project). A good value metric scales with your customer's success. We'll show you how to find yours.

  • 2. Step 2: Map Your Personas to Tiers

    Your pricing tiers shouldn't be 'Good, Better, Best.' They should map to your customer personas. A 'Startup' plan, a 'Business' plan, and an 'Enterprise' plan each solve the problems of a different type of customer. This makes the choice obvious for them.

  • 3. Step 3: Use the '10x Rule' for Your First Price Point
    A simple chart illustrating the 10x value rule for SaaS pricing.

    If your product can't deliver at least 10x the value of its cost, it's a 'nice-to-have,' not a 'must-have.' We'll walk through a simple exercise to estimate the value you create (time saved, revenue gained) and set a price that's a no-brainer for your customers.

  • 4. Step 4: 'Grandfather' Your First 100 Customers

    You will get your V1 pricing wrong. That's okay. The most important thing is to get started. Offer a lifetime discount to your first 50-100 customers in exchange for feedback. This 'grandfathering' builds loyalty and gives you the freedom to raise prices later without alienating your earliest supporters.

Key Takeaways for Founders
  • Price based on value delivered, not features built.
  • Your pricing tiers should align with your customer personas.
  • Ensure your product delivers at least 10x its cost in value.
  • Don't be afraid to change your pricing, but always protect your early adopters.
  • A simple, two-tiered pricing model is often enough to start.

Pricing isn't a one-time decision; it's a process of continuous discovery. Get it 80% right, get it live, and start learning.

Thanks for reading.

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