The Art of SaaS Pricing
Three Pricing Models
- Per-Seat: Slack, Notion, Linear
- Usage-Based: AWS, Vercel, Stripe
- Tiered Feature: GitHub, Figma, Supabase
The Magic Number: Three Tiers
- Starter/Free — attracts users
- Pro — the goldilocks option
- Enterprise — custom needs
Psychological Tactics
- Anchor pricing
- Decoy effect
- Annual discount (20% off)
- "Most Popular" badge
When to Raise Prices
- Customers say product is "too cheap"
- High conversion rate (>5%)
- Low churn (<3% monthly)
Originally published on IceCat Studio Blog.