At launch, is it smarter to keep things simple with one plan for everyone or to introduce a tiered pricing structure targeting different types of users?

Based on the guidance in our SaaS pricing book, Price to Scale, the answer is: it depends on your product’s market, the predictability of your usage metric, and the extent of customer segmentation you’ve already validated.

Here are some key points from the book to help you decide:

• If your product’s usage and customer needs are still emerging, a simple, one-plan approach at launch can reduce complexity. This simplicity makes it easier for customers to understand your offering and for your team to monitor performance without the confusion of multiple tiers. In early stages, too many options might distract from validating your product-market fit.

• Conversely, if you have clear evidence of distinct customer segments with differing needs—and if your usage metrics are predictable enough to support granular measurement—the book explains that a tiered (or “good–better–best”) pricing strategy may be more effective. Tiered pricing allows you to better capture revenue from varied willingness-to-pay while targeting different segments more precisely.

• The book also highlights that tiered pricing is more common once you’ve gathered more data. It’s easier to communicate predictability to larger purchasing groups using structured tiers, while a single plan can work better when the measurement of value isn’t as straightforward.

In summary, for a launch scenario, if your market is not yet fully segmented and your metrics aren’t as predictable, starting with one straightforward plan can simplify customer decision-making and your go-to-market approach. As you learn more about your customer base and usage patterns, you can then consider evolving to a tiered model that can capture more revenue.