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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on our saas pricing book, Price to Scale, it’s generally best to offer between two and three pricing plans. Here’s why:
• Our book highlights the “Good – Better – Best” model (see page 29), which naturally aligns with offering 2–3 distinct packages. This structure helps segment your customers without overwhelming them.
• Testing in Price to Scale (page 243) shows that too many tiers—such as four or more—can confuse prospects, which may lead to lower conversion rates. Fewer plans simplify the decision process, even if the fit isn’t perfectly tailored for every customer.
• A concise selection provides adequate choice while keeping your pricing strategy clear, reducing the cognitive load on potential buyers and ultimately driving higher conversions.
In summary, our strategy in Price to Scale suggests focusing on two to three pricing plans to balance choice with simplicity.