Three SaaS pricing strategies to increase MRR

Executive overview

Most SaaS founders underprice and stay stuck. Changing how you structure pricing — not just what you charge — removes buying friction and attracts higher-quality customers.

Three distinct pricing moves apply to three different business models: raising prices on a PLG product once benchmarks are proven, switching from flat fees to usage-based for mid-market sales, and adding a premium consulting tier for capital-rich but time-poor buyers.

Higher prices signal higher value — and consistently improve conversion, retention, and customer quality.

Principle 1: Raise prices on a PLG product once you have a baseline

• Start at a low price to prove the market and build features around real use cases.
• Once trials flow consistently and conversion rate is known, A-B test a higher price.
• Grandfather existing customers — they stay at the old rate and never notice.
• Higher price raises perceived value; buyers who hesitated at $30 converted at $99.
• Even if conversion rate dips slightly, revenue per customer rises — net result is more MRR.
• Higher-paying customers use the product more and burden support less.

Principle 2: Switch from flat fee to usage-based for mid-market and enterprise

• A high upfront flat fee scares buyers away from unfamiliar products.
• Usage-based removes the commitment barrier: start small, pay as you scale.
• Example structure: $299/month for 500 contacts, ratchets up as usage grows.
• Buyers perceive low risk at entry; seller knows successful customers will reach the original target deal size anyway.
• Twilio and AWS use the same model — free entry credits, then pay-as-you-go.
• Deals move faster through the pipeline when there is no large upfront ask.

Principle 3: Add a high-priced consulting tier for time-constrained buyers

• Two distinct buyer segments often exist: time-rich/capital-poor and capital-rich/time-poor.
• The second segment may not buy not because of price or product, but because onboarding feels like too much work.
• Adding a done-for-you consulting add-on at 2.5x the platform price removes that friction.
• Buyers with budget treat the premium as an insurance policy on their investment succeeding.
• Segment the offering — self-serve for one, VIP onboarding for the other — and both convert faster.