SaaStr

JULY 5, 2025

I get to set the price of the apples because they’re my apples. Price Determines Product Quality (Self-Fulfilling Prophecy) “When you’re making a product, the price you set will determine how good your product is. net income, 111.5% revenue growth year-over-year 2013 IPO : $129.5M That’s it.”

Underperforming Technical Team 239

Underperforming Technical Team Sales Hiring compliance Outsourced Development 239

SaaStr

JULY 4, 2025

Lower Competition = Higher Prices In horizontal markets, you’re competing with 47 project management tools. Toast can charge restaurant-specific pricing. ” They’re digitizing their core business operations for the first time. In vertical markets, you might be the only serious option.

Merchant Services 323

Merchant Services SaaS Payments Payment Services Payments 323

SaaStr

OCTOBER 25, 2024

8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. You get a base number of minutes for a particular price. But now there’s been a broad shift toward usage-based pricing or seat-based pricing, or a combination of the two.

Venture Capital 331

Venture Capital Marketing AI SaaS 331

SaaStr

FEBRUARY 3, 2025

There have been so many price increases since 2021, many apps are 40% or more expensive than they were in 2021. To raise prices even more? DeepSeek has, at least in theory, cut the price of AI for SaaS as much as 90% overnight. And in Classic B2B you are raising my prices this quarter again ? But will it hold?

AWS 294

AWS AI Software Business 294

SaaStr

NOVEMBER 8, 2024

AI SDRs have taken off more quickly than AI AEs (although personally, I suspect more value will be in AI SEs and AEs that can answer my deep product and pricing questions instantly, without games). But what about the more personal sales side? But is it working yet, these AI SDRs?

AI 326

AI B2B Engineering Customer Support 326

Sales Hacker

FEBRUARY 7, 2025

SaaS pricing isn’t static – it’s a living strategy that grows with your company. In this article we dive into a playbook for pricing across different stages of company growth, inspired by Geoffrey Moore’s Crossing the Chasm. Tiered pricing models emerge to address these differences.

Pricing 109

Pricing Scale SaaS Technical Review 109

SaaStr

JULY 12, 2025

API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing. This requires rethinking pricing, packaging, and revenue recognition. While Anthropic likely operates at 40-60% gross margins today (vs.

B2B 249

B2B Scale Outsourced Development AI 249

SaaStr

OCTOBER 30, 2024

A Per Seat Model is Key to Expansion at HubSpot Long live per-seat pricing! Yet, its $36k+ ARR customers are now 28% of its base, up from 15% in 2019. And a few other interesting learnings: #6. It still works, when it works. #7. 3+ Product (Hub) Customers Worth 2.7x

SMB 312

SMB CTO Onboarding Scale 312

SaaStr

NOVEMBER 13, 2024

But SMBs in the middle have become more cost and price-sensitive. #10. SMB Weaker. Klaviyo is seeing strengths in its entrepreneur segment (new companies) and enterprise ($50k+ deals) as noted above. Going More and More Multi-Product is the Key To $2 Billion in ARR As it is for almost all of us. Some earlier, some later.

Scale 301

Scale SMB Scaling Enterprise 301

SaaStr

JUNE 6, 2025

Many B2B and SaaS leaders continue to rely on price increases and upsells for more and more of their growth. Pricing Strategy Must Evolve : Volume-based growth is no longer viable for most companies. SaaS leaders need to focus on value-based pricing and finding ways to increase average contract values rather than just customer counts.

Cloud 258

Cloud Software Marketing SaaS 258

SaaStr

NOVEMBER 6, 2024

Seat Expansion Driving Growth, Along with Cross-Sell of New Products Long live per-seat models and pricing! A Big AI Push, But Being Very Conservative on Consumption Pricing For now, Atlassian is sticking mainly to per-seat pricing. It’s split 50/50 at Atlassian. #5. And a few other interesting leanings: #6. $10k+

Enterprise 290

Enterprise Pricing Cloud AI 290

SaaStr

JULY 4, 2025

per share — a whopping 65% premium over Olo’s closing price on April 30th (the last trading day before acquisition rumors started swirling). Yesterday, Thoma Bravo announced they’re acquiring restaurant tech platform Olo (NYSE: OLO) for $2 billion in an all-cash deal. That’s $10.25

Payments 208

Payments SaaS Payments Payment Solutions Healthcare 208

SaaStr

JULY 6, 2025

This extreme revenue concentration shows Figma’s ability to create significant value for mid-market and enterprise customers—a small number of deeply engaged accounts drive the majority of revenue, indicating strong product-market fit at scale and pricing power within larger organizations.

Software Review 266

Software Review Scale Systems Review Enterprise 266

SaaStr

NOVEMBER 1, 2024

And that includes pricing. One caveat: if your product requires significant onboarding and business process change, monthly pricing sometimes just doesn’t work. Be flexible in the beginning at least. Once you have a brand that customers trust, more will prepay annually.

SaaS 261

SaaS Payment Features Churn Pricing 261

SaaStr

JUNE 21, 2025

Unlimited budgets for “AI” and “cybersecurity” Long contract terms (3-7 years) High switching costs (security clearances) Less price sensitivity Actionable Takeaways For Current B2B Founders: Audit your “mission-critical” score – Would customers pay 2x your price? If no, you’re in danger.

B2B 266

B2B Government Healthcare AI 266

SaaStr

MAY 20, 2025

Pricing Model Evolution : HubSpot’s multi-tiered pricing approachfrom free tools to enterprise solutionscreates natural upgrade paths as companies grow, maximizing lifetime value while maintaining strong operating margins (14% non-GAAP operating margin in Q1 2025). Their ecosystem extends their reach globally.

SMB 273

SMB Scale Education AI 273

SaaStr

DECEMBER 27, 2024

Existing distribution channels: While startups are racing to build distribution, incumbents already have it However, the business model disruption around AI pricing remains a challenge for larger players to navigate.

AI 284

AI Marketing SaaS Interviewing 284

SaaStr

JULY 11, 2025

Financial Services: Mortgage & Loan Processing Help users explore mortgage options by collecting key inputs like purchase price, credit score, down payment, and property location, then presenting tailored loan choices with current rates. Pay only for what you use with transparent pass-through pricing for 3rd party integrations.

Payment Solutions 267

Payment Solutions Scale AI Payment Services 267

SaaStr

MAY 13, 2025

Position custom work as a premium service, and price it accordingly. For example, you could charge a one-time fee for custom integrations or even better, bake it into the contract as a higher annual price. Pricing guidelines for custom work. So try to monetize them. This should include: Criteria for evaluating requests (e.g.,

Outsourcing Services 196

Outsourcing Services Outsourced Development Enterprise Pricing 196

SaaStr

DECEMBER 11, 2024

Pricing and Monetization The industry hasn’t yet settled on a dominant pricing model for AI capabilities, making this an area of ongoing experimentation.

AI Search 284

AI Search AI Artificial Intelligence B2B 284

SaaStr

JUNE 29, 2025

Hire for the Right Experience Level If you’re selling to mid-market or enterprise customers, hire someone who has experience managing accounts at a similar price point. As you scale, aim for each CSM to manage $1-2M in ARR to keep the function cost-effective.

Sales Hiring 199

Sales Hiring Customer Success Scale Churn 199

SaaStr

JANUARY 2, 2025

I was advised to push back and ask for a significantly higher price. I asked for something like $7m-$8m at a significantly higher price. Not a very good today given the early traction we had, but fair enough for the time. I went and asked some folks what to do. Without even thinking about it. The details I sort of forget.

Pricing 274

Pricing Metrics Marketing 274

SaaStr

APRIL 19, 2025

Dear SaaStr: Should I Buy a Great “ com” At a Crazy Price or Just Stick What the “ ai” We Already Have? Just make sure the price aligns with the value it will bring to your business long-term. It’s funny, a lot of folks are probably doing it the other way, trying to buy the.ai

AI 175

AI Pricing Banking Branding 175

SaaStr

JULY 12, 2025

Simplified Pricing to Annual-Only Early Vanta initially offered both monthly and annual pricing options, following the standard SaaS playbook. Removing pricing complexity actually helped customers make decisions faster. They understood the actual workflow, the real pain points, and the specific language customers used.

Sales Hiring 185

Sales Hiring Software Review compliance Sales Recruiting 185

SaaStr

JUNE 23, 2025

If model providers change pricing or restrict access, margins could compress quickly. Usage-Based Pricing for AI Subscription models work for traditional software, but AI-powered platforms often create variable value. Usage-based pricing aligns costs with value creation and enables explosive growth.

Software Review 212

Software Review AI Technical Review Venture Capital 212

SaaStr

JUNE 22, 2025

Digital health company Hinge Health’s May 2025 debut particularly stands out—the company priced at $32 per share (top of its range) and opened at $39.25, closing up 17% on its first day. What’s Next Navan’s confidential filing means specific terms—share count, pricing range, timing—remain undisclosed.

B2B 189

B2B Payments SaaS Payments Payment Services 189

SaaStr

OCTOBER 29, 2024

Once you get into late-stage deals, it’s more about absolute $$$ invested at a reasonable price than % ownership, but in Seed, A, and B deals, ownership % is important. But these exceptions to ownership targets make these investments non-core. Typically, the funds are not as committed / investing in these deals.

Investment 282

Investment Pricing Engagement Leadership 282

SaaStr

FEBRUARY 3, 2025

Well, first, let’s be clear — it’s tough if your core goal is to get acquired for a big price in most cases. But don’t raise so much that your valuation precludes an acquisition at a tolerable price for certain acquirers. There really aren’t that many good acquisitions done a year.

Strategy 266

Strategy Venture Capital Acquisition Pricing 266

SaaStr

OCTOBER 20, 2024

That’s really 200x from the price they pay, because typically over the lifetime of an investment, total dilution is about 50%. If it’s just 1 Big Winner out of 50 angel investments, to even just double your money, that winner has to do 100x. So most successful angels in tech are seeking startups that can 100x their money.

Investment 284

Investment Startup Pricing 284

FastSpring

NOVEMBER 27, 2024

Currency Display: Enhancing Transparency and Trust Displaying prices in the customer’s local currency is another important component of a localized checkout experience. Furthermore, showing the local currency at checkout helps build trust by providing transparency in pricing.

Payment Methods 158

Payment Methods Merchant Services SaaS Payments Payments 158