.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.
Based on our saas pricing book, Price to Scale, the key to fairly pricing usage across different customer types and use cases is to tie your pricing to both customer value and your own cost structure. Here are the main points to consider:
• Directly Link Pricing to Value:
Our book explains that choosing a usage metric that mirrors the value a customer derives from your product is crucial. This approach helps ensure that customers pay proportionately for the benefits they receive and supports easier client adoption.
• Use a Modular or Tiered Approach:
As discussed in Price to Scale (see the sections on modular and good–better–best packaging), you can create segmentation either by building graded packages or designing a modular pricing structure. A tiered approach works well in markets (like SMBs and mid-market customers) where usage patterns or willingness to pay are less variant. In contrast, a modular pricing system allows you to be more granular, especially when different customers have diverse usage needs.
• Consider Cost Dynamics and Growth Rates:
The book also emphasizes the need to be granular if your underlying costs (such as compute or storage expenses) are directly tied to usage growth. Charging based on usage growth rates ensures that as customers expand their use, both they and your business share the cost implications fairly.
In summary, fair usage pricing across varied customer types involves selecting a metric that reflects customer value, employing either tiered or modular packaging as appropriate, and aligning your pricing closely with both customer behavior and your operational cost structure. This approach helps maintain fairness and sustainable profitability as usage evolves over time.