Three things you should know about SaaS pricing
In this short video, Pricing Partner, Patric Kirchner shares three things to consider when developing a SaaS pricing strategy.
One of the most important distinctions in SaaS pricing is between the price model and the price metric. The model defines the structure, such as tiered or consumption-based pricing. The metric defines how usage is measured. Treating these as separate decisions avoids unnecessary complexity.
SaaS pricing models continue to evolve. Many businesses are moving toward consumption-based approaches, driven by rising data costs, AI usage, and customer demand for flexibility. To balance this with revenue predictability, hybrid models that combine usage with minimum commitments are becoming more common.
Customers also show a willingness to pay more for certainty and for value-added services. Pricing structures that offer predictability or monetize enhanced functionality can support stronger recurring revenue.
If you would like to discuss how to approach SaaS pricing in your business, please get in touch.
