Increase SaaS prices

Business Benefits

Get a net revenue boost by raising prices for your SaaS product.


Identify if the time is right to raise SaaS prices.

Do the price increase only in active periods in your business, and do it when you do not have anything else affecting the price like a Black Friday deal. For example, Percentage of daily active users (%DAU) may show you seasonal fluctuations such as Christmas, New Year’s, and summer. Comments from paid users about charging more confirm that your prices should go up.

Interview your users about the features they find most useful, or the ones they would like to see in your product.

This info can help you create value that justifies a price increase.

Survey people about a range of price points to determine your viable prices.

  • Too expensive: “At what price would you consider the product to be so expensive that you would not consider buying it?”
  • Too cheap: “At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good?”
  • Expensive enough to reconsider: “At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it?”
  • A great buy for the money: “At what price would you consider the product to be a bargain, a great buy for the money?”

You should review your pricing iteratively every few months.

Check if the ideal price range is not far outside the range set by your competitor’s prices.

Set your price far above your competition only if you are sure that your product justifies the premium. Run projections or predictions of churn and retention related to new pricing, as well as business impact analysis.

Communicate a price increase to existing users effectively. Notify customers by email with plenty of notice.

Let them make a decision about their plan before the price adjustment. Do it often enough, reminding them of your value. Thank customers and be clear, upfront, and dispel any concerns around your motivations behind the increase.

Justify the price increase focusing on length of time since the last price increase,

value you have added to your product or service during that time, and
increase in demand if you have service limitations.

Inform existing users that prices are increasing for new customers but that pricing will never change for them.

If you want to avoid much of the risk and show loyalty.

Increase the price of current plans for bigger existing customers significantly but only if you are convinced they will not fuss.

You can do an across-the-board increase instead, if you are willing to let smaller clients churn and to focus on more valuable enterprise accounts, or if you are convinced they will not fuss either. Check you are big enough to afford losing a few hundreds or even several thousands of customers due to the price increase.

Create a new, more expensive tier with added features or existing ones shifted in instead of raising prices for all users, to avoid angering them.