Subscription Pricing Tier Optimizer
Optimize SaaS pricing tiers, revenue, and customer distribution. Enter values for instant results with step-by-step formulas.
Frequently Asked Questions
How many pricing tiers should I have?
Most SaaS: 3-4 tiers. Fewer than 3: Miss market segments (price-sensitive vs. premium). More than 4: Decision paralysis, maintenance burden. Typical structure: (1) Free/Freemium: Acquisition, no support cost. (2) Basic/Starter ($10-50): SMB, self-serve. (3) Pro/Team ($50-200): Growing companies, more features. (4) Enterprise ($200+): Large orgs, custom pricing, dedicated support. Some add 'Growth' tier between Pro and Enterprise. Rule: Each tier should have clear, differentiated value proposition.
How do I decide which features go in which tier?
Feature tiering principles: (1) Basic: Core value proposition, enough to solve primary problem. (2) Pro: Power features (automation, integrations, collaboration). (3) Enterprise: Scale, security, compliance, support (SSO, audit logs, SLA). Method: List all features. Rank by customer value (survey) and cost to deliver. High value, low cost → Basic (drives adoption). High value, high cost → Pro/Enterprise. Low value → Consider cutting. Common mistakes: Putting too much in Basic (no upgrade reason), putting must-haves in Enterprise only (blocks sales). Test: Are 20%+ of Basic users hitting feature limits within 90 days?
Should I offer annual vs. monthly pricing?
Offer both, incentivize annual. Typical discount: 15-20% for annual (2 months free). Benefits of annual: Better cash flow, lower churn (commitment), higher LTV. Benefits of monthly: Lower barrier, easier acquisition, flexibility for customers. Mix varies: SMB-focused = 60-70% monthly. Enterprise-focused = 70-80% annual. Tactics: Show annual as default (anchoring). Display monthly price smaller. 'Save 20%' badge on annual. Some SaaS (Notion, Figma) show monthly price but bill annually by default. Track annual % by tier—push annual for Pro/Enterprise, accept monthly for Basic.
How do I price Enterprise tier?
Enterprise is often 'Contact Sales' not fixed price. Why: (1) Negotiation expected at enterprise level, (2) Custom requirements (seats, support, SLAs), (3) Procurement processes vary. Starting point: 3-5x Pro price for similar usage. Then adjust for: Seat count (volume discounts at scale), contract length (3-year discount), support level (dedicated CSM, 24/7 support). Negotiation range: 20-40% off list price is normal. Floor: Don't go below 2x cost-to-serve (margin must justify sales effort). Track: ACV (Annual Contract Value), sales cycle length, win rate by discount level.