If our market suddenly grew 10× and we captured a large share, would our current pricing model still make sense (i.e., is it scalable for huge growth)?

Based on our book Price to Scale, the answer is that a pricing model that works well today might not remain optimal if your market grows 10× and you capture a much larger share. Here’s why:

• A scalable pricing model should be simple, measurable, and scalable. As we discuss on page 249 of Price to Scale, the pricing metric must be easily explainable (even in an elevator pitch), quantifiable, and flexible enough to capture increased value as your business grows.

• If your current model is overly dependent on a metric (like per user) that doesn’t align well with the value being delivered at scale, then as a larger customer base is added, the model may start to misprice value. For example, our book explains that when value is driven by factors such as active customers or engagement rather than sheer order volume, then pricing based solely on users can become a limiting factor.

• Scalability means that the pricing mechanism should adjust as market conditions change. If your model doesn’t allow for adaptations—like tweaking the levers (consider, for instance, shifting from per user pricing to value-based pricing tied to outcomes or deeper customer engagement)—you risk leaving money on the table or creating friction when negotiating with larger segments.

In summary, when faced with significant market expansion, it is crucial to revisit your pricing model to ensure that your chosen metrics truly capture the underlying value customers derive from your product. Our saas pricing book, Price to Scale, emphasizes building models that are not just appropriate for today’s market conditions but are flexible enough to maintain alignment between pricing and customer value as you scale.