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Why most startups get pricing wrong (and how to fix it)

Original: The Complete Guide to SaaS Pricing Strategy

May 25, 2025
19 min read
Guide
Intermediate

Summary

Tunguz outlines how different SaaS pricing models impact margins and retention.

Who This Is For

Product Managers
Founders
Revenue Ops

Key Takeaways

  • Master the three core pricing strategies: maximization for revenue growth, penetration for market share, and skimming for profit maximization
  • Choose between value-based, cost-based, or competition-based pricing models depending on your market position and customer segments
  • Use pricing as a strategic positioning tool to communicate whether you're premium, mid-market, or budget-friendly
  • Consider seven key factors when setting prices: basis for pricing, positioning, customer base size, willingness to pay, competitive landscape, cost structure, and growth stage

Tools & Technologies

Salesforce Twilio Snowflake HubSpot Slack Expensify New Relic Workday Oracle AWS Heroku

Topics Covered

saas pricing monetization growth