.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
How to Fix Your Broken SaaS Pricing Model
A broken SaaS pricing model typically manifests through inconsistent sales, customer objections during the sales process, inability to monetize new features, or declining average deal sizes. Based on our experience with numerous SaaS companies, here's how to fix your pricing model:
1. Evaluate Your Current Pricing Structure
Begin with a thorough benchmark of your pricing model against industry best practices. This evaluation should identify:
- Misalignments between your pricing and go-to-market strategy
- Inconsistencies in your package structure
- Inappropriate or missing pricing metrics
- Areas where you're leaving money on the table
2. Conduct Empirical Pricing Research
Analyze your current pricing performance through:
- Tier/Package Performance: Examine average deal size, upsell rates, discounting patterns, and shelfware
- Price Bearing Analysis: Evaluate your $/metric performance across sales teams, geographies, and segments
- Usage Analysis: Determine if your product usage aligns with your chosen pricing metrics
3. Realign Your Pricing Strategy with Your GTM Motion
One of the most common issues we see is a disconnect between pricing structure and go-to-market strategy. For example, a company with an enterprise-focused sales motion needs a correspondingly sophisticated pricing model that supports high-value deals.
4. Rationalize Your Packages
Simplify your offering to reduce complexity and increase clarity:
- In one case study, we helped rationalize from 12 to 5 core packages across 3 product lines, resulting in 15-30% increases in deal sizes
- For another client, we reduced four packages to two with remapped feature sets, creating their first consistent pricing model
5. Implement the Right Pricing Metrics
Choose metrics that align with how customers derive value:
- Consider combination metrics when appropriate (e.g., users + company revenue)
- For some businesses, usage-based pricing elements can be effective when implemented with proper guardrails
6. Develop Implementation Support
Successful pricing changes require:
- A detailed implementation plan covering internal training, customer communication, and system updates
- Sales enablement materials and training to support the new model
- Pricing calculators and tools for your sales team
Real-World Results
Our methodology has consistently delivered measurable improvements:
- For a $30M eCommerce SaaS company, we increased deal sizes by 15-30% with 100% sales team adoption
- For a digital communications SaaS leader, we implemented usage-based pricing while preventing a potential 50% revenue reduction
- For a $10M IT infrastructure management software company, we created their first consistent pricing model by aligning pricing with GTM strategy and implementing appropriate pricing metrics
With a strategic approach to pricing model redesign, you can transform a broken pricing structure into a powerful revenue driver for your SaaS business.