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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 book Price to Scale, the decision to offer an unlimited top tier versus capping your highest offering depends on several key factors:
• Predictability of usage: When your key pricing metric is highly measurable and usage is predictable, you can more confidently design a pricing tier with granular units. If usage is less predictable or harder to measure, then a capped or bundled approach—with a generous buffer—helps mitigate risk and avoid the possibility of customers overusing the service relative to the cost.
• Customer expectations and adoption: If you’re targeting customers who value simplicity and the peace of mind that comes with predictable bills (often seen in higher-value deals), a capped highest offering can be more appealing. Conversely, an unlimited plan might be more attractive for products in early adoption phases or where you want to lower friction, but it does come with the trade-off of potentially exposing you to usage volatility.
• Cost structure and margin considerations: Unlimited plans can sometimes offload some costs to the customer, yet they can also risk margin compression if heavy users draw significantly on support or infrastructure. Capping the highest offering helps maintain a balance between customer satisfaction and your underlying cost structure.
In summary, our pricing strategy book emphasizes evaluating the predictability of your usage data and your customers’ need for billing certainty. If your product’s consumption is less predictable, capping the top tier with a generous usage buffer is often the better choice. If you can accurately track and bill usage—and your customers value simplicity—an unlimited plan might work well. Ultimately, the decision should align with both your cost structure and the specific customer segments you’re targeting, as discussed in Price to Scale.