Trending Pricing Topics in SaaS – Insights from the SaaS Lunch

Pricing is a crucial factor for SaaS companies' profitability and growth, yet it often receives too little strategic attention. In this article, we share key insights from our SaaS lunch.

Trending Pricing Topics in SaaS – Insights from the SaaS Lunch
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Pricing in SaaS often gets too little attention, despite being one of the most critical factors for profitability and growth. During our recent SaaS lunch as our Co-founder & CEO Wilma Eriksson hosted together with pricing expert Felix Mörée from Axholmen, we discussed the latest trends and challenges in pricing. It quickly became evident that many companies struggle to prioritize and manage their pricing strategy effectively.

Pricing: An Underprioritized Area

One of the biggest takeaways from the discussion was that pricing often gets overlooked. It is perceived as complex, and many companies lack a clear owner for the topic. As more SaaS companies embrace AI and shift from traditional subscription models to more value-based pricing models, having a well-thought-out strategy is becoming increasingly important.

The solution? Clear ownership. Appointing a "Head of Pricing" can be a crucial first step in ensuring that pricing is handled systematically and strategically.

AI's Impact on Pricing

AI and automation bring new opportunities but also challenges for pricing models. More companies are moving toward "price per usage" or "price per outcome," where customers pay based on the actual value they receive. This requires companies to reassess their existing pricing models and determine whether the classic "price per user" model remains relevant.

Continuous Optimization is Key

One of Felix Mörée’s main recommendations was that pricing should not be a static process. Companies should review their pricing models and packaging at least every six months and conduct full-scale revisions every two to three years to stay relevant. Another critical aspect is regularly analyzing the customer base and identifying opportunities for price increases, especially for customers paying outdated "legacy prices."

Testing and Customer Insights as a Foundation

Many companies rely solely on internal data and expertise when setting prices. However, the key takeaway from the lunch was the importance of combining three critical sources:

  1. Internal data and analysis
  2. Testing and iterations
  3. Customer interviews and surveys

By systematically leveraging all three sources, companies can develop a more data-driven and customer-centric pricing model that accurately reflects willingness to pay.

Monetizing New Features

When launching new features, there is often a lack of strategy around monetization. A positive takeaway from the lunch was that none of the participants were giving away new features for free without first communicating their value. However, there is still room to improve both pricing and communication when introducing new features.

Finally: Pricing is an Ongoing Process

The most important message from the discussion is that pricing is not a one-time effort. It must be continuously adjusted and optimized as customer needs and the market evolve. By actively working with strategic pricing, SaaS companies can create a sustainable business model and maximize their revenue potential.