SaaS pricing: many smaller customers paying $x or a few customers paying $x,xxx? Which is better?


We are in a unique SaaS segment which has few competitors. In terms of pricing our plans, is it better to charge a premium (and get fewer customers) or price them low and potentially get a large number of customers (who pay a much smaller amount per month)?

Pricing Strategy Customers Saas

asked May 1 '15 at 12:29
Bruce Wigington
12 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll

2 Answers


Why not both if you can offer a more premium service for the premium price?

Other than that I would suggest you investigate what your users actually are willing to pay for your service. Dont go over, and no need to go under.

I know that might sound like a stupid answer.

answered Jun 11 '15 at 15:02
Greif Villum Klausen
141 points


If your product provides the same value to companies that can pay you $1000s/month and to companies that can only pay you $10s/month, then you're probably doing something wrong.

IMO, you should:

  1. Identify what kind of value you're providing to each segment \ audience in your market
  2. Check whose pain is bigger - perhaps one of the segments is unserved vs. another with lots of competition; perhaps your solution works flawlessly with smaller companies than with bigger ones, etc.
  3. Focus and better tailor your product to your (now focused) target audience in order to maximize the value you're providing
answered Jun 12 '15 at 20:47
Omer Yarkowich
71 points

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