Pricing Your SaaS: First Attempt

You have been staring at your pricing page for a week. $9? $29? $49? Free tier or no free tier? Here is how to stop overthinking and pick a number that actually works.

Your First Price Is Always Wrong

Accept this now and it gets easier. Your first price is a starting point, not a life sentence. You will change it. Probably multiple times. The goal right now is to pick something reasonable, start charging, and learn from how customers respond. Spending weeks modeling the perfect price is wasted effort when you have zero data.

The Simple Framework

Look at three things:

• What competitors charge -- Check 3-5 competitors. Your price should be in the same ballpark unless you have a clear reason to be higher or lower.
• What the problem costs without you -- If your tool saves someone 5 hours a week and their time is worth $50 an hour, that is $250 a week in value. Charging $49 a month is a no-brainer for them.
• Who your customer is -- Freelancers paying out of pocket have different budgets than marketing teams with corporate cards. A $29 price that is fine for a business is a hard sell for an individual.

Starting Price Ranges by Customer Type

These are rough guidelines, not rules:

• Individual consumers -- $5 to $15 per month
• Freelancers and solopreneurs -- $15 to $39 per month
• Small businesses (1-20 employees) -- $29 to $99 per month
• Mid-market companies -- $99 to $499 per month
• Enterprise -- $500 and up, usually with annual contracts

When in doubt, price higher than you think. You can always offer discounts. Raising prices later is harder than lowering them.

Free Tier: Probably Not Yet

Free tiers make sense when you have a self-serve product with strong viral mechanics and you can afford to support non-paying users. At the early stage, a free tier usually just gives you users who never convert. Start with a free trial (7 or 14 days) instead. It creates urgency and filters for people who are serious.

Quick Takeaway

Pick a price based on competitor research, the value you create, and your customer type. Price higher than feels comfortable, use a free trial instead of a free tier, and plan to adjust based on real customer feedback. Done beats perfect when it comes to pricing.