For years, B2B SaaS companies have relied on a simple, predictable pricing model—feature-based, per-user, tiered subscriptions. It was the gold standard for monetizing software, easy for companies to implement, and familiar to customers.

But the landscape has changed. Buyers now expect pricing to match the value they receive, not just a rigid seat-based or flat-rate structure. With the rise of AI, usage-based software, and product-led growth models, traditional SaaS pricing is no longer enough.

I recently spoke with James Wilton, founder of Monevate and a leading expert in SaaS pricing, on the Marketing Spark podcast.

His message was clear: too many SaaS companies treat pricing as an afterthought, rather than a strategic growth lever. Instead of simply copying competitors or setting arbitrary price points, successful companies rethink their pricing strategies based on customer value, usage behavior, and competitive positioning.

If your pricing model hasn’t been updated recently or if you’remirroring what competitors are doing, you’re leaving money on the table. Here’s how to fix it.

Why Traditional SaaS Pricing is Failing

The biggest mistake SaaS companies make is assuming that what worked five years ago still works today. While per-user, tiered pricing has been the industry default, it often fails to align with how customers actually experience value.

Three key shifts are challenging traditional pricing models:

• SaaS buyers are more informed and price-sensitive than ever. They demand pricing that makes sense for their business—not just a “one-size-fits-all” subscription.
• Many SaaS products create value that isn’t based on the number of users. A company using an automation tool might only need a few users but generate massive value from thousands of automated processes.
• From AI-powered tools to API-based software, SaaS companies are moving toward pricing models that scale with value. Customers expect pricing to be fair, flexible, and tied to what they actually use.

For SaaS companies still relying on outdated models, it’s time to rethink how you price your product.

How to Fix Your SaaS Pricing Model

If you want to maximize revenue, improve retention, and increase customer lifetime value, your pricing model needs to be deliberate, strategic, and constantly evolving. Here’s how to do it:

Price for Value, Not Just Competitors

Most SaaS companies look at competitor pricing and adjust their own pricing accordingly. While benchmarking is useful, copying competitors is a race to the bottom.

Your pricing should reflect the unique value your product delivers, not just what the market dictates. If your software automates a process that saves customers 50 hours a month, your pricing should capture a portion of that value—not just be based on the number of users.

What to do instead:

• Identify the core value metric that drives business results for your customers (e.g., transactions, API calls, workflows, AI-generated insights).
• Align your pricing with outcomes, not just features. If your product helps companies increase revenue, reduce costs, or improve efficiency, your pricing should reflect that.
• Create clear pricing tiers based on usage or business size, so customers can scale with you.

Move Beyond Per-User Pricing

Many SaaS products deliver value that isn’t tied to the number of users. Yet, per-user pricing remains the default model.

The problem? It penalizes adoption. If a customer wants more employees using the tool but faces a significant cost increase per user, they may limit adoption—reducing your stickiness and expansion revenue.

Better alternatives include:

• Usage-based pricing: Charge customers based on actual usage, such as the number of transactions, storage used, or AI-generated reports.
• Hybrid models: Combine a base subscription fee with additional charges for higher usage, premium features, or advanced AI capabilities.
• Outcome-based pricing: Charge based on measurable outcomes, like revenue generated, leads captured, or costs saved.

Instead of forcing per-user pricing, think about what actually drives value for your customers.

Test and Iterate Like You Do with Product and Marketing

Most SaaS companies A/B test landing pages and iterate on product features—but treat pricing as a static decision.

This is a mistake. Pricing should be an evolving part of your business strategy, tested and refined just like your marketing and product roadmap.

How to do this:

• Experiment with new pricing models. Test usage-based, hybrid, or value-based pricing with select customer segments.
• Survey your customers. Understand their willingness to pay, perceived value, and pain points with your current pricing.
• Analyze churn and expansion revenue. If you’re losing customers due to pricing—or not seeing expansion revenue from existing customers—it’s a sign your pricing model needs work.

Pricing isn’t a “set it and forget it” exercise. The best SaaS companies constantly refine their approach to maximize revenue and retention.

Make Pricing a Core Part of Your Go-To-Market Strategy

Pricing isn’t just a finance decision—it’s a growth driver. The right model can accelerate adoption, improve retention, and position your product as the best choice in a competitive market.

Yet, too many SaaS companies leave pricing decisions until the last minute. It gets tacked on at the end, with little strategic thought.

How to fix this:

• Treat pricing as a core part of your business strategy—not an afterthought.
• Align your pricing with customer acquisition and expansion goals.
• Work with marketing, sales, and product teams to ensure your pricing is aligned with your overall go-to-market strategy.

When done right, pricing can be one of your strongest competitive advantages.

Be Proactive, Not Reactive

Many SaaS companies only rethink pricing when growth slows or churn increases. By then, the damage is already done.

The companies that win are those that continuously optimize pricing, based on customer behavior, competitive shifts, and product innovation.

Proactive pricing strategies include:

• Regular pricing audits to identify new opportunities for monetization.
• Segmented pricing strategies to serve different customer groups more effectively.
• Upsell and expansion strategies to drive revenue growth within your existing customer base.

The worst time to fix pricing is when it’s already a problem. The best time? Right now.

If your pricing model hasn’t changed in years, you’re leaving money on the table. The best SaaS companies treat pricing as a strategic growth lever—not an afterthought.

Now is the time to rethink your pricing and unlock new growth opportunities.

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