Learn how to price your first SaaS product the right way. Simple pricing strategies, common mistakes, and beginner-friendly advice to set profitable SaaS pricing.
I know you are probably wondering about 'Pricing Your First SaaS' and it is one of the most confusing parts of building your first SaaS.
Not because pricing is complicated — but because most beginners are afraid to charge.
Some price too low.
Some copy competitors blindly.
Some delay pricing completely.
This guide will help you price your first SaaS clearly, confidently, and realistically.
Understand What You’re Really Selling
You’re not selling software features.
You’re selling:
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Time savings
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Convenience
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Reduced effort
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Less frustration
If your SaaS:
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Saves hours each week
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Automates repetitive work
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Simplifies decision-making
Then it has real monetary value.
Pricing should always be connected to the problem you solve, not the number of features you built.
Avoid Copying Competitor Pricing
Many beginners make this mistake:
“My competitor charges $29, so I’ll charge $19.”
This rarely works because:
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Competitors may be VC-funded
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They may target larger companies
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They may already have trust and brand recognition
Competitor pricing is a reference, not a rule.
Your pricing depends on:
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Who your target customer is
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How painful the problem is
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How urgent the solution feels
Best Pricing Models for Your First SaaS
Keep your pricing simple.
Beginner-friendly SaaS pricing models:
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Flat monthly pricing
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2–3 tier plans
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Optional yearly discount
Avoid early on:
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Complex usage-based pricing
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Enterprise-only plans
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“Contact sales” pricing
Simple pricing builds trust faster.
Example beginner structure:
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Starter – $9/month
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Pro – $29/month
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Early access lifetime – $59–$99
Price Slightly Higher Than You Feel Comfortable
If you feel nervous about your price, that’s normal.
But pricing too low causes problems:
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Low-quality users
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High churn
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Too much support work
A simple rule:
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Confused between $9 and $19 → choose $19
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Confused between $19 and $29 → choose $29
You can always offer discounts, but raising prices later is harder.
Should You Offer a Free Plan?
Free plans are optional.
If you use one, make sure it:
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Shows value quickly
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Has clear limitations
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Encourages upgrades
Good free limits:
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Usage caps
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Locked features
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Watermarks
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Export restrictions
Bad free plans:
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Everything unlocked
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No upgrade trigger
Free plans should tease, not fully satisfy.
Validate Your Pricing Early
You don’t need thousands of users to test pricing.
You can validate pricing by:
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Showing pricing on your landing page
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Asking early users directly
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Tracking upgrade button clicks
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Offering limited-time early pricing
If users say:
“It’s a bit expensive…”
That often means you’re close to the right price.
A Simple SaaS Pricing Formula for Beginners
Use this rule:
Charge 10–30% of the value you create
Examples:
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Saves $100/month → charge $10–$30
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Saves 10 hours/month → charge $15–$40
As your product improves and trust grows, pricing can increase.
Common SaaS Pricing Mistakes
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Waiting too long to charge
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Pricing emotionally
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Underestimating value
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Overcomplicating plans
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Focusing on features instead of outcomes
Your first price is not permanent.
Final Thoughts & Final Advice
Pricing your first SaaS is not about perfection.
It’s about:
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Learning fast
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Charging early
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Improving over time
Start simple.
Charge fairly.
Adjust based on real feedback.
That’s how sustainable SaaS businesses are built. You can always learn about SaaS pricing models for startups and I think knowing about those puts you ahead in the competition.
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