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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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Choosing the right pricing model for a multi-product SaaS requires a strategic approach that aligns with your go-to-market strategy and customer value perception. Here's how to approach this:
Align Pricing with GTM Strategy
First, determine your go-to-market approach. Are you pursuing enterprise sales with high average selling prices (ASPs) or focusing on a broader market? Your pricing model should reflect this strategic direction. For example, one of our clients, a $10M ARR IT infrastructure management software company, successfully aligned their pricing strategy with their enterprise-focused GTM strategy, which significantly improved their sales process.
Evaluate Your Current Approach
Analyze your existing pricing structure:
- Are you selling lump-sum subscriptions without specific packages?
- Do you have too many packages causing confusion?
- Is there friction in the sales process due to pricing inconsistencies?
Rationalize Your Product Packages
Many multi-product SaaS companies have too many packages, which creates complexity. In our case studies, we've guided companies to streamline their offerings:
- Reduced from four packages to two with remapped feature-sets
- Rationalized from 12 to 5 core packages across 3 product lines
This simplification can lead to deal size increases of 15-30% with improved sales team adoption.
Select Appropriate Pricing Metrics
The right pricing metric is crucial for multi-product SaaS:
- Analyze product usage to ensure metrics align with how customers derive value
- Consider combination metrics (e.g., users + company revenue) that scale with customer value
- Assess your $/metric performance across sales teams, regions, segments, and product lines
Research and Validate
Use a mix of research methods to validate your pricing model:
- Empirical analysis of existing tier/package performance
- Price bearing analysis to understand pricing power
- Usage analysis to align metrics with actual product use
Implementation Planning
Successful implementation requires:
- A detailed roadmap for rolling out the new pricing strategy
- Internal training and enablement
- Customer communication strategies
- Development of pricing calculators and sales enablement materials
By following this structured approach to pricing model selection, you can create a coherent multi-product pricing strategy that reduces sales friction, improves monetization of strategic features, and increases average deal sizes—as we've consistently seen with our clients in the SaaS space.