Complete pricing framework for B2B SaaS companies. Value-based pricing, tier optimization, enterprise pricing, and pricing experiments. Built from scaling Backupify and building 7+ companies.
At Backupify, we initially priced based on our costs plus a margin. It seemed reasonable, but it ignored the value customers actually got. Here's how the two approaches compare, using illustrative per-customer numbers:
Same customer, same product, 4x the revenue per customer. The difference? Pricing based on value, not costs.
Every pricing model has trade-offs. Choose based on your product, market, and growth stage.
Charge based on number of users or seats
Collaboration tools, project management, team software
Charge based on consumption or usage metrics
Infrastructure, APIs, data processing, storage
Charge based on feature access or functionality
Productivity tools, marketing platforms, analytics
Price based on value delivered, not costs
Enterprise software, high-value solutions, ROI-driven products
Combine multiple pricing models
Mature products, diverse customer base, complex solutions
What is the problem worth to your customer? Quantify it.
Example: If your product saves 10 hours/week at $100/hour = $1,000/week = $52K/year value
Capture 10-30% of the value you create. More for unique solutions, less for competitive markets.
Example: $52K value × 20% = $10.4K/year = $867/month
Start 20% higher than your target. You can always discount, but raising prices is hard.
Example: Start at $1,040/month, test customer response, adjust based on conversion
Create ROI calculators, case studies, and value documentation to justify pricing.
Example: "Customers save $52K/year, pay $10.4K/year = 5:1 ROI"
Test different price anchors to influence perception
Show high price first, then lower price seems more reasonable
Show a $500/month tier first so a $200/month tier reads as the better deal
Add a strategically priced option to make target option more attractive
Three options: Basic ($50), Pro ($100), Enterprise ($500). Pro looks best.
Add a $75 tier between $50 and $100 so the $100 tier looks like better value
Test different annual discount percentages
Compare 10%, 15%, 20%, 25% annual discounts
Run a 15% annual discount against 20% and compare annual-plan uptake and cash collected
Test moving features between tiers
Move premium feature to lower tier, measure impact
Move "Advanced Analytics" from Pro to Starter and check whether Starter conversions rise without cannibalizing Pro
Test different price points within same tier
A/B test $99 vs $97 vs $95 for same tier
Test $97 against $99 to see whether charm pricing moves conversion for your buyers
Core platform access
Based on consumption metrics
Additional functionality
Implementation and support
Support and SLA guarantees
Our partnership program includes hands-on support for pricing optimization, value-based pricing, and revenue growth.