Quick Answer
- Find 5 direct competitors, take the median price of their middle tier.
- Price your middle tier within 20% of that median (higher if differentiated, lower only if competing on price — rarely works in SaaS).
- Use 3 tiers, not 2 or 4: Starter (individual) · Pro (team, 3-5× Starter) · Enterprise (quote-only).
- Avoid $97 — it signals "consumer info product" to B2B buyers. $149 or $199 often converts better.
- Re-price every 12 months. Most founders raise too late and leave 11% ARR on the table.
How much should you price your SaaS? Most founders overthink this question and underprice as a result. The boring answer that works for 80% of categories: find five direct competitors, take the median price, and put your middle tier within 20% of that median.
The 5-competitor method (step by step)
- List 5 direct competitors serving the same persona, with public pricing. If under 5 have public prices, use 3.
- Record their middle-tier prices (or whichever tier most of their customers actually buy).
- Take the median. Not the average — the median resists outlier distortion.
- Price your middle tier within ±20% of that median. If competitors land $30-80 with median $50, your middle tier should be $40-60.
- Set Starter at ~30% of middle. Set Enterprise at ~3-5× middle, quote-only.
Worked example
Competitors: $19, $39, $49, $69, $79. Median = $49.
Your middle tier should be $40-60. Default: $49.
Starter: ~$15-19. Enterprise: ~$199-499 (quote).
SaaS pricing benchmarks by vertical (2026)
The default 3-tier structure
| Tier | Audience | Price anchor | What makes it different |
|---|---|---|---|
| Starter | Individual / solo user | $19-49/mo | Core product, 1 seat, basic integrations |
| Pro | Team of 3-15 | 3-5× Starter | Collaboration, admin, API, advanced integrations |
| Enterprise | 50+ employees | Custom ($20-100K/yr) | SSO, SCIM, audit logs, custom SLA, CSM |
The $97 anchor mistake
Don't price your middle tier at $97. It's a famous 2000s online-course anchor that signals "consumer info product" to B2B buyers. The same product at $149 or $199 often gets MORE trial signups in B2B because higher price implies higher quality.
Related questions
How many tiers should a SaaS have?
Three. Always three. Two leaves money on the table (power users can't self-select up). Four+ paralyses buyers and costs 15-25% in conversion.
Should I show prices publicly?
Yes, for anything under $1,000/month. Hidden prices signal "expensive enterprise product" and cost you self-serve buyers. Only hide the Enterprise tier (custom by definition).
When should I raise SaaS prices?
When churn is below 2% monthly, 30%+ of demos don't ask about price, customers max-out their tier limits, or competitor prices have moved up. Most founders raise 12-18 months too late.
Go deeper: SaaS pricing for founders (full guide: value-based pricing, per-seat vs usage, when to raise) · Pricing glossary · Free pricing & margin calculator