How SaaS Pricing Evolves Across Different Growth Stages
- David Bitton
- Feb 13
- 4 min read
Updated: Mar 2
ID 184408737 © Putilich | Dreamstime.com
SaaS pricing isn’t just about setting a number—it’s a strategic growth engine that should evolve as your company scales. A pricing model that works for an early-stage startup won’t support enterprise sales. Failing to adapt can limit revenue, misalign customer expectations, and stunt long-term growth.
Inspired by Geoffrey Moore’s "Crossing the Chasm" framework, this guide explores how to refine your SaaS pricing strategy at each stage—from attracting early adopters to defending market dominance.
Early Stage: Finding Product-Market Fit
At the startup phase, the focus is simple: acquire customers and validate the product’s value. Early adopters are typically open to trying new solutions, but they expect low-risk pricing since the product is still evolving.
Pricing Approach at This Stage:
Experimentation – Test different models (freemium, free trials, discount-based entry) to encourage adoption.
De-Risking the Decision – Lower friction through money-back guarantees, limited-time free trials, or usage-based pricing.
Customer Feedback Loop – Gather insights on pricing sensitivity and perceived value.
Example:
Dropbox used a freemium model, offering 2GB of free storage and rewarding referrals with additional space. This fueled viral growth while giving customers time to build reliance on the product before upgrading.
Personal Experience:
As VP of Sales at Octopai, we priced low to attract early adopters and reduce friction. Our average deal size started at $12,000 per year, prioritizing market penetration over immediate revenue maximization.
Growth Stage: Crossing the Chasm
Once the product has proven its value, the challenge shifts from early adopters to mainstream customers. This transition, known as "crossing the chasm," requires appealing to risk-averse buyers who need more assurance before adopting a new solution.
Pricing Approach at This Stage:
Tiered Pricing – Offer multiple plans (Basic, Pro, Enterprise) to cater to different customer segments.
Value-Based Pricing – Align pricing with measurable value drivers (e.g., seats, storage, API calls, or revenue impact).
Trust Signals – Provide case studies, security assurances, and ROI-driven metrics to convince mainstream buyers.
Example:
Nosto initially used a performance-based pricing model, but this created revenue unpredictability. To scale, they switched to modular pricing, allowing customers to pay for specific tools, improving revenue stability.
Personal Experience:
At Octopai, we gradually increased pricing as customers gained more value, pushing our average deal size upwards while maintaining strong conversion rates.
Scaling Stage: Expanding Market Leadership
At this stage, pricing must balance market expansion, profitability, and upselling. The goal is to increase deal size, improve retention, and fend off competitors.
Pricing Approach at This Stage:
Sales Velocity Optimization – Support faster deal cycles as CAC (Customer Acquisition Cost) decreases.
Strategic Bundling – Combine high-value features into packages that drive higher ARPU (Average Revenue Per User).
Enterprise Pricing – Offer customized pricing models, longer-term contracts, and premium support options.
Example:
Zoom simplified pricing with "Zoom One," bundling key features and streamlining purchasing, leading to a 27% YoY increase in enterprise adoption.
Personal Experience:
At Octopai, we secured multi-year contracts worth hundreds of thousands of dollars, increasing revenue stability through continuous pricing optimization.
Maturity Stage: Retention & Market Defense
At maturity, companies face new challenges: competition, pricing pressures, and customer retention. The focus shifts toward deepening customer relationships and maximizing LTV (Lifetime Value).
Pricing Approach at This Stage:
Retention-Driven Pricing – Annual billing discounts, loyalty programs, and volume-based incentives.
Localized & Flexible Pricing – Adjust pricing for different regions, industries, and purchasing behaviors.
Premium Upsells – Introduce high-value, AI-driven, or security-based features at a premium price.
Example:
DocuSign originally charged per document signed, but as e-signatures became commoditized, competitors like PandaDoc and HelloSign lowered prices. To counter this, DocuSign shifted to feature-based pricing, packaging premium functionalities like automated workflows and secure storage.
Key Takeaways for All Stages:
Customer Feedback is Crucial – Pricing should evolve based on customer needs, usage data, and market trends.
Match Pricing to Company Goals – Align pricing with growth priorities (adoption vs. profitability vs. expansion).
Data-Driven Adjustments – Use A/B testing, heatmaps, and cohort analysis to refine pricing over time.
FAQ: Common Questions About SaaS Pricing
1. How often should we adjust our SaaS pricing?
Review pricing at least annually, but adjust based on market shifts, competition, and product evolution.
2. What’s the best pricing model for a SaaS startup?
Freemium, usage-based, or tiered pricing are common. The best model depends on customer expectations and value proposition.
3. When should we increase our pricing?
Increase pricing when customer value perception is high, demand is strong, or competitors charge significantly more for similar offerings.
4. Should we publish our pricing on our website?
For SMB SaaS, yes. For enterprise SaaS, often no—large deals typically require custom pricing based on integrations and customer needs.
Need Help Optimizing Your SaaS Pricing?
At MarketFit Sales Partners, we help SaaS companies refine pricing strategies, maximize conversions, and drive scalable revenue growth. Whether you're launching, scaling, or optimizing for enterprise customers, we can help you increase deal size, improve retention, and boost profitability.
📅 Book your free initial pricing strategy call now! Schedule a Call now
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