How to Package and Price Your solutions from the Seed Stage through IPO - Openview - Kyle Poyar

Attached is the bible with a lot of examples to define your SaaS Pricing at each stage. Just follow the proposed methodology.

Few additional comments to this great article and must read articles:

1. Make sure you iterate on your pricing and packaging at least every year. Read here how Front changed to monthly revision of their pricing !
2. Remember that your pricing should be online even for large enterprise packages. Some simple but efficient hacks for your pricing webpage here.
3. Duration and commitment - The overall tendency is to let the customer free: don't charge users who don't use the application ( the Slack story ), price differently for monthly and yearly commitment (17% discount at Front), keep in mind the recent laws in Spain allows customers to resign their contracts when they want regardless of the contract signed, and thus avoid pushing for a long-term commitment like 3 years of prepaid use as it is super painful to manage in term of churn rate, customer satisfaction and cash forecast afterward.
4. Freemium is not recommended as it never converts into paying customers (only 5%!), test X-day free trial with no credit card required;
5. Seed stage should be simple - One price for one solution but as soon as you enter into the expansion stage, really take the time to think about your customer pricing journey: what do you expect your customers to pay at the beginning of the relationship, then how can you increase their level of use and how can you upgrade them (options, other packages), how can you preserve the cross-sell (sell to other entities of the group) opportunity through the appropriate geographical limitation of the legal entity. Simple questions that can change the game afterward

Mastering-SaaS-Pricing-ebook (2).pdf