If we notice some customers are paying too much relative to their usage (or too little for heavy usage) under our current pricing, should we adjust or introduce new tiers to better balance price-to-usage? How do we do that fairly?

Below is a consolidated answer based on the core tenets of our SaaS pricing book, Price to Scale:

Direct Answer
Yes, if you observe that some customers are paying more relative to their usage while heavy users may be underpaying, it’s worth considering adjustments or even introducing new pricing tiers. The goal is to ensure that the value provided is essentially aligned with the price paid.
A Data-Driven and Customer-Centric Approach
• Begin by analyzing customer usage patterns. Group customers based on their actual usage as well as the value they extract from your product.
• Identify where the discrepancies lie. This might involve running a simulation or scenario analysis comparing current revenues against projected value delivery and usage levels.
Adjusting Pricing Tiers Fairly
• Transparency and fairness in pricing are key. Clearly communicate to your customers why certain adjustments are being made.
• Consider incremental changes: rather than a steep adjustment, phase in new tiers gradually. This helps customers adapt and gives you room to assess the impact of your changes.
• If introducing new tiers, ensure that each tier is well-defined with specific usage thresholds or bundled features so that customers understand what they’re paying for at each level.
• In some cases, a hybrid model might work—combining fixed-base fees with usage-based fees—to balance the risk of under- or over-charging.
Practical Application
An effective tactic is to pilot these adjustments with a segment of your customer base. This approach helps you fine-tune the new model before a full rollout. It also lets you gather customer feedback and adjust on the fly to better align pricing with perceived and actual value.
Summary/Takeaway
Balancing price and usage is at the heart of a fair pricing strategy. By leveraging detailed usage data, segmenting customers, and introducing clearly defined pricing tiers or hybrid models, you can ensure that pricing remains both competitive and equitable. As emphasized in our pricing strategy book Price to Scale, the key is to maintain transparency, regularly assess customer value, and adjust gradually to perfectly balance pricing with usage.

These steps will help ensure that your pricing structure evolves with your customers’ usage, delivering value while also supporting your revenue growth objectives.