A Practical Guide to B2B SaaS Pricing Models

For B2B SaaS companies, pricing is more than just a number; it is a reflection of your product's value, your market position, and your long-term growth strategy. The right pricing model can be a powerful engine for customer acquisition and retention, while the wrong one can lead to stalled growth and a leaky customer bucket.

At City Shift Finance, we work with B2B SaaS companies to design and implement pricing strategies that align with their business goals and drive sustainable revenue growth. This guide will walk you through the most effective pricing models for 2026 and help you choose the right one for your business.

The Foundation: Value-Based Pricing

Before we dive into specific pricing models, it is essential to understand the principle of value-based pricing. Unlike cost-plus pricing, which simply adds a margin to your costs, value-based pricing is determined by the perceived value of your product to the customer.

As the team at Railsware, a product development studio, explains, "The main idea behind value-based pricing is that the price of a product should be equal to its value for the customer" [1]. This approach requires a deep understanding of your customers' pain points, their desired outcomes, and how your product helps them achieve those outcomes.

Common B2B SaaS Pricing Models

Once you have a clear understanding of your product's value, you can choose a pricing model that aligns with that value. Here are some of the most common pricing models for B2B SaaS companies:

1. Tiered Pricing

Tiered pricing is one of the most popular pricing models for B2B SaaS companies. It involves offering multiple pricing plans, or tiers, with different features and at different price points. This allows you to cater to a wide range of customers, from small businesses to large enterprises.

Best Practices for Tiered Pricing:

•Align tiers with customer segments: Each tier should be designed to meet the needs of a specific customer segment.

•Make the value proposition clear: Clearly communicate the features and benefits of each tier.

•Use a "good, better, best" approach: Offer a limited-feature free or low-cost tier to attract new users, a mid-range tier with more features for growing businesses, and a high-end tier with all the bells and whistles for enterprise customers.

2. Usage-Based Pricing

Usage-based pricing, also known as pay-as-you-go, charges customers based on how much they use your product. This model is particularly well-suited for products where usage can vary significantly from one customer to another, such as cloud storage or API services.

According to Maxio, a B2B SaaS billing platform, usage-based pricing can be a powerful tool for aligning price with value, as customers only pay for what they use [2].

Best Practices for Usage-Based Pricing:

•Choose the right usage metric: The usage metric should be easy for customers to understand and should be directly related to the value they receive from your product.

•Be transparent: Clearly communicate how usage is measured and how it translates into cost.

•Consider a hybrid approach: You can combine usage-based pricing with a tiered model to offer more predictable pricing for larger customers.

3. Per-User Pricing

Per-user pricing is a simple and straightforward pricing model that charges a flat fee for each user on an account. This model is easy for customers to understand and is well-suited for products where the value is directly tied to the number of users.

Best Practices for Per-User Pricing:

•Keep it simple: Avoid complex pricing structures with multiple add-ons and fees.

•Consider offering volume discounts: Offer discounts for larger teams to incentivize adoption.

•Be mindful of the "per-user penalty": Be aware that per-user pricing can discourage adoption within larger organizations, as the cost can quickly add up.

Choosing the Right Pricing Model

The right pricing model for your business will depend on a variety of factors, including your product, your target market, and your business goals. Here are some questions to consider when choosing a pricing model:

•What is the value of your product to your customers?

•How do your customers want to buy?

•What are your competitors' pricing models?

•What are your business goals?

How City Shift Finance Can Help

Choosing the right pricing model is a critical decision that can have a significant impact on your business. At City Shift Finance, we can help you:

•Conduct a thorough analysis of your product, your market, and your competitors.

•Develop a value-based pricing strategy that aligns with your business goals.

•Choose the right pricing model for your business.

•Implement and test your new pricing strategy.

Contact us today to learn more about how we can help you optimize your B2B SaaS pricing.