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SaaSBlogsYour Pricing Is (Probably) Broken
Your Pricing Is (Probably) Broken
SaaS

Your Pricing Is (Probably) Broken

•October 22, 2025
Kyle Poyar
Kyle Poyar•Oct 22, 2025
0

Summary

SaaS and AI startups largely have broken pricing: founders default to flat fees, feature bundles, seat-based and usage models that misprice customers and leave revenue on the table. Poyar highlights concrete fixes — e.g., add premium editions (50–100% higher price with ~15–25% uptake for roughly +15% revenue), price escalators (5–8% annual increases), lite seats (10–40% of power‑user price), and curb top‑user consumption (70–80% of AI tokens come from ~10% of users) — plus sales and contract changes for usage models. The takeaway: tactical, layered adjustments can quickly improve margins and expansion without a risky wholesale pricing pivot, while missteps risk margin erosion, forecasting pain, and lost expansion opportunities.

Your pricing is (probably) broken

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