.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 pricing strategy book, Price to Scale, the decision to use psychological pricing (like $99) versus round numbers (like $100) isn’t presented as a one‐size‐fits-all rule. Instead, our focus is on aligning your price points with the value perception of your target customers and the way they are accustomed to making purchasing decisions.
Key points from our book include:
• Value Alignment – Our book emphasizes that pricing isn’t just about the number itself but how that number communicates value. Whether you choose a psychological price or a round number should depend on how your customers perceive the value of your product.
• Market Context and Buyer Behavior – While psychological pricing is a common tactic in consumer markets, in the SaaS arena—where purchases are often based on clear usage metrics, consistent subscription models, or enterprise value—the difference between $99 and $100 may not significantly impact customer decisions. In many cases, your target segments may be more sensitive to how the pricing structure matches their internal budgeting or purchasing habits rather than minute differences in the final digit.
• Simplicity and Consistency – In Price to Scale we stress the importance of simplicity in pricing. For markets where customers are trained to make decisions based on easily digestible metrics (like how they buy Office 365 subscriptions by employee count), a clean, round number might reinforce clarity and trust. Conversely, if market research and testing show that a psychological approach improves conversion in your context, then that can be worth considering.
Ultimately, our advice is to let customer and market insights drive the choice rather than relying solely on conventional pricing tactics. Pilot testing and gathering direct feedback can help ensure that whichever approach you choose effectively conveys the value of your product without confusing the purchasing process.
Summary: Rather than focusing exclusively on the psychological impact of $99 versus $100, Price to Scale recommends prioritizing value communication, market expectations, and customer behavior for your SaaS pricing.