How to price a new SaaS when you have no data

Find the anchor before the number

Work out what the buyer does today: a manual process, a spreadsheet, a contractor or an incumbent tool. That cost is your anchor.

Price against the anchor, not against your infrastructure bill. Cost plus pricing is how technical founders systematically underprice.

The first three tiers

• Entry

  Low friction, one clear limit. Its job is to make trying you an easy decision, not to be profitable.

• Core

  Where you expect most revenue. Price it at roughly a fifth of the value the buyer receives per month.

• Scale

  Deliberately expensive, with the features larger teams ask for. It makes Core look reasonable and captures the few who will pay far more.

Raising prices

Raise for new customers first and grandfather existing ones for a defined period. Announce the change before it happens, and say what improved.

If nobody complains about your price, it is too low. A small amount of pushback is the signal that you found the boundary.

FAQ

Free trial or freemium?

Trials for tools that show value in days. Freemium only when your marginal cost per free user is near zero and free users create network value.

Should I offer annual billing?

Yes, with roughly two months free. The cash and the retention are both worth the discount.