What is the ideal pricing for a SaaS

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In 2024, everyone is making a SaaS.

And the most common the ask is about the pricing.

Everyone's got pricing advice on X (Twitter):

"Put $7 at the end of your price!" "Price it under $10!" "Use psychological pricing!"

But guess what - these tricks don’t work.

Because they're missing one simple rule:

You work backwards from the price point.

I price my SaaS in a range: $29-$99, and decide what to build, and how to build it based on that.

Let me explain why this matters and how to find the ideal price instead 👇

The Low-Price Trap

Most founders fall into this trap, they:

Start with low prices ($4-$9/month)

Think it'll attract more customers

Hope to raise prices "later"

Here's the truth: Later never comes.

Low prices = Low quality signal

Your cheap price actually HURTS your product.

Because customers perceive it as a lower quality product.

High-Value Clients Don't Care About Price*

Why is there a * at the end of the title?

Because yes, high value clients don’t care about the price…

…as long as the product solves a burning problem for them.

Take keyword research tools for example.

If I'm getting the best data and opportunities, do I care if I'm paying:

$50/month?

$100/month?

$200/month?

Nope. I want the BEST signals. Period. The advantage there overhauls any cost I spend on the software.

Same with newsletter software. Deliverability matters more than saving $50/month.

Part of the reason why a lot of email companies are able to scale to 7 figures pretty fast.

But here’s the thing:

A low price DOESN’T compensate for delivering LOW value.

You can’t price at $5 and expect users to tolerate a bad product.

The Tweet Hunter Story 📈

Let me share something interesting:

We started at $9/month

Ended at $49/month (5x increase!) (new customers only)

Here's what happened each time we raised prices (these 2 happen together in a business):

1. Small conversion drop (with the increased price)

2. Lower churn (this is something we didn’t expect)

Basically, fewer people were buying but the ones which did stayed for longer.

And EVERY SINGLE TIME we raised prices, the LTV bump made for the conversion drop.

Still blows my mind.

You might think -

"But won't people complain about the price bump?"

Here's something wild I learned:

People who complain often LOVE your product

They complain because they rely on it

Most complainers don't actually churn

The real churn happens from the customers who don’t find you product valuable and cancel in silence.

Which means -

Your #1 focus in the business should be to actually solve a real problem for your customer.

And that will give you the authority to charge higher.

Higher prices change everything:

You think bigger

You build better features

You deliver premium experiences

Your users get better results

It's a win-win spiral upward.

The Real Pricing Framework

Price for results, not features

Target people who value those results

Don't fear raising prices

Build for premium, charge for premium

And please…

Stop obsessing over psychological pricing tricks.

Instead, ask:

What results do we deliver?

Who needs these results badly?

How much are these results worth to them?

That's your price.

Remember: If no one's complaining about your price, it's too low.

Hit reply and tell me - what’s your current pricing and where are you moving it to?

Keep building 💻 Tibo

P.S. Raising prices this week? Share on X and tag me (@tibo_maker) the before/after results! 📊