Pricing strategy is the deliberate approach a company takes to setting prices. It includes the pricing model (per-seat, usage-based, tiered, flat), positioning relative to alternatives (premium, value, low-cost), price points and packaging, discount and contract policies, and pricing changes over time. The discipline is one of the highest-leverage growth moves available (a 10% price increase often produces 10%+ revenue with minimal cost) and one of the most-underutilized at startups because pricing changes feel risky. Most startups under-price; pricing increases are typically the lowest-cost growth investment available.
The pricing model options:
Per-seat / per-user: charge per active user. Classic SaaS model. Predictable r...