SaaS Pricing Research: How to Analyze Competitors and Optimize Your Pricing Strategy

Pricing can make or break a SaaS business. Set it too low, and you leave money on the table or attract customers who don’t see your product as valuable. Set it too high, and you risk pricing out the very businesses you’re trying to serve. Without the right research, pricing becomes a guessing game—one that can lead to poor margins, high churn or stalled growth.

Competitive pricing research helps founders navigate this challenge. It’s not about copying what others are doing but about understanding how your pricing fits into the larger market. A strong pricing strategy aligns with customer expectations, competitor positioning and the unique value your product delivers.

The problem is, most founders don’t spend enough time on pricing research. They might check a few competitor pricing pages, assume a ballpark figure, and move on. But SaaS pricing isn’t static. Competitors tweak their models, customers’ expectations shift, and new trends—like usage-based pricing—reshape the landscape. To stay ahead, you need a structured approach to gathering, analyzing and applying competitive pricing insights.

In this post, we’ll break down how to:

• Identify your real pricing competitors
• Gather data from multiple sources, even when pricing isn’t public
• Benchmark pricing models effectively
• Avoid common mistakes when using competitive pricing data

By the end, you’ll have a clearer understanding of how to approach pricing strategically—setting the stage for better revenue growth, customer retention and market positioning.

Defining Your Competitive Landscape

Before diving into pricing research, you need to define who you’re actually competing with. Too many SaaS founders assume that competitors are just companies with similar features, but pricing strategy isn’t just about features—it’s about value, market positioning and customer perception.

Competitors fall into three main categories:

1. Direct Competitors: The Obvious Players

These are businesses solving the same problem for the same audience in a similar way. If you’re building a project management tool for small agencies, other agency-focused project management software is your direct competition. When researching pricing, this group gives you the clearest apples-to-apples comparison.

Key questions to ask:

• How do their pricing tiers compare in features and limits?
• Are they targeting the same type of customer (SMB vs. enterprise)?
• Are they positioned as premium, mid-market, or budget options?

2. Indirect Competitors: Alternative Solutions

Not all competitors look the same. Some solve the same core problem but in a completely different way. If you run a survey software company, your direct competitors might be other survey tools, but your indirect competitors could include CRM platforms with built-in feedback features or analytics tools that provide similar insights without traditional surveys.

Ignoring indirect competitors is a common mistake. Customers often evaluate multiple types of solutions before choosing one, so their pricing models still influence expectations.

Key questions to ask:

• What alternative solutions might potential customers be using instead?
• How does their pricing model compare? (For example, are they charging per seat, per response, or via a flat rate?)
• How often are customers switching from or to these alternatives?

3. Adjacent Market Players: Same Business Model, Different Vertical

Sometimes, you’re competing for budget, not just functionality. A marketing automation SaaS, for instance, might not compete with design tools directly, but both could be fighting for a slice of the same marketing team’s software budget. Looking at pricing strategies in adjacent markets can uncover trends you wouldn’t spot just by researching direct competitors.

Key questions to ask:

• What are companies in similar markets doing with their pricing?
• Are customers bundling your category with another, and if so, how does that affect pricing expectations?
• Are there trends (freemium, usage-based pricing, seat-based pricing) emerging in adjacent markets that might impact your space?

4. How to Determine Your Real Pricing Competitors

It’s easy to get lost in a sea of competitors, but not all of them should shape your pricing. Focus on companies that:

1. Serve your ideal customer – If your software is built for mid-sized e-commerce brands, don’t waste time researching pricing for enterprise or solopreneur solutions.
2. Win or lose deals against you – If prospects regularly mention a certain competitor in sales conversations, they’re worth paying attention to.
3. Influence pricing expectations in your space – Even if a competitor isn’t a direct threat, they can set industry norms for what customers expect to pay.

Defining your competitive landscape early keeps your pricing research focused and actionable. Once you’ve mapped out these players, the next step is gathering pricing data—and that’s where things get interesting.

Gathering Competitive Pricing Data

Once you’ve defined your competitive landscape, the next challenge is gathering pricing data. While some companies are transparent about their pricing, others—especially in enterprise SaaS—keep their numbers hidden behind sales calls and custom quotes. To get an accurate picture, you’ll need to pull from multiple sources.

1. Public Sources: The Low-Hanging Fruit

Many companies display their pricing openly, making this the easiest place to start.

• Pricing pages – Directly analyze how competitors structure their tiers, pricing models, and feature sets.
• G2, Capterra, and Trustpilot – Customers sometimes mention pricing in reviews, providing insight into real-world costs.
• Competitor blogs and case studies – Some companies reference pricing when highlighting customer success stories.
• Press releases and funding announcements – Price changes, new packaging, or shifts in business models often get publicized.

💡 Pro Tip: Use the Wayback Machine to track how competitors’ pricing has evolved over time. If they’ve steadily increased prices or introduced new tiers, it can signal where the market is heading.

2. Customer Insights: Hearing It from the Source

Your own customers and prospects are valuable pricing research tools. They can provide direct intel on what competitors charge, how discounts are structured and what influenced their buying decisions.

Ways to gather insights:

• Sales calls and lost deal analysis – Ask prospects why they chose (or didn’t choose) your product. Pricing will often come up.
• Customer surveys – If users have switched from a competitor, ask what they were paying before.
• Support and onboarding interactions – Customers sometimes ask if you’ll match a competitor’s price, revealing key data points.

💡 Pro Tip: If a prospect mentions a competitor’s pricing, dig deeper. Instead of just logging the price, ask, “What made you choose that tier?” or “What was included in that price?”—this often uncovers hidden discounts or key decision factors.

3. Competitive Intelligence Tools: Automating the Process

Manually tracking competitor pricing can be time-consuming, but several tools can automate the process:

• Klue – Monitors competitor websites, pricing pages, and sales materials.
• OpenView’s Benchmark Reports – Offers SaaS pricing benchmarks across different markets.
• Scrapers – Custom-built web scrapers can pull and compare pricing data in real time. I like Scrapy the best, but there are lots of options.

💡 Pro Tip: If competitors use dynamic pricing (like per-usage models), track pricing over time to see how it changes under different conditions.

4. When Pricing Isn’t Public: Estimating Enterprise Costs

For SaaS companies selling to mid-market or enterprise, pricing is often hidden behind a “Contact Sales” button. Here’s how to estimate it:

• Talk to buyers – Prospects who have received quotes from competitors can provide ballpark figures.
• Check job postings – Companies sometimes list budgets for software in job descriptions (e.g., “Experience with Salesforce Enterprise, $150k+ per year”).
• Reverse-engineer from public deals – Enterprise customers sometimes disclose contract values in case studies or procurement databases.
• Use fake inquiries cautiously – Some founders submit sales inquiries to competitors to get pricing details, but this can backfire if you get caught.

💡 Pro Tip: Instead of going directly to competitors for quotes, network with industry peers who have purchased similar solutions. They’re often more willing to share real pricing insights.

5. Keeping Pricing Data Fresh

Pricing isn’t static—companies tweak plans, add features, or roll out new tiers regularly. To stay current:

• Set a quarterly or biannual pricing review process.
• Track competitor pricing changes in a simple spreadsheet or database.
• Monitor pricing announcements and customer feedback for early warning signs.

Gathering pricing data is just the first step. The real challenge is making sense of it, which we’ll cover in the next section: Benchmarking Pricing Models.

Benchmarking Pricing Models

Once you’ve gathered pricing data, the next step is understanding how competitors structure their pricing and how your model compares. Pricing isn’t just about setting a number—it’s about choosing a structure that aligns with customer value, sales motion, and long-term revenue growth.

1. Common SaaS Pricing Models

SaaS businesses typically fall into one of these pricing models:

Flat-Rate Pricing

• What it is: A single price for all customers, no tiers or customization.
• Example: Basecamp charges a flat monthly fee for unlimited users.
• Pros: Simple, predictable revenue, easy to sell.
• Cons: Hard to scale pricing for different customer segments, limits upsell opportunities.

Tiered Pricing (Most Common)

• What it is: Multiple pricing levels based on features, usage, or customer type.
• Example: HubSpot’s Free, Starter, Pro, and Enterprise plans.
• Pros: Captures more customer segments, allows for value-based pricing.
• Cons: Too many tiers can confuse buyers, hard to optimize without deep customer insights.

Usage-Based Pricing

• What it is: Customers pay based on how much they use the product.
• Example: AWS charges based on computing and storage usage.
• Pros: Scales naturally with customer growth, aligns cost with value.
• Cons: Harder to predict revenue, some customers dislike variable costs.

Per-Seat Pricing

• What it is: Pricing based on the number of users.
• Example: Slack charges per active user per month.
• Pros: Simple, easy to understand, revenue scales with adoption.
• Cons: May discourage broader team adoption if costs grow too fast.

Hybrid Models

• What it is: A combination of different pricing models.
• Example: Salesforce charges per user but also has add-ons and API-based pricing.
• Pros: More flexibility, captures different types of customers.
• Cons: Can be complex to communicate and implement.

2. How to Benchmark Against Competitors

Once you’ve mapped competitor pricing models, benchmark your pricing against them based on three key factors:

A. Positioning: Are You Premium, Mid-Market, or Budget?

Look at where your pricing fits in the competitive landscape:

• Premium pricing – Higher than most competitors, signaling exclusivity and high value.
• Mid-market pricing – Competitive with most, offering strong value for the cost.
• Budget pricing – Lower than competitors, aiming for mass adoption.

💡 Pro Tip: A lower price doesn’t always mean more customers—cheap pricing can suggest lower quality, especially in B2B SaaS.

B. Feature vs. Price Comparison

• Compare what’s included at each tier vs. competitors.
• Identify gaps—are you charging more for fewer features? Offering something unique?
• Highlight differentiators that justify your pricing.

💡 Example: If a competitor offers unlimited users at $50/month but you charge $99/month for 10 users, you need to explain why your product is worth more.

C. Conversion and Expansion Potential

• Do competitors have a free plan or trial that lowers friction?
• How do competitors drive upsells? (Add-ons, higher tiers, overages?)
• Is their pricing designed to land-and-expand, or lock-in higher commitments upfront?

3. Signs Your Pricing Model Needs Adjusting

If competitors are winning deals and customers mention price as a key reason, you may need a pricing adjustment. Look for:
✅ Low conversion rates on paid plans – May signal pricing is too high or confusing.
✅ Low upgrade rates – Could mean customers don’t see enough value in premium tiers.
✅ High churn after trial periods – May indicate sticker shock or pricing mismatch.

4. Should You Follow Competitor Pricing Trends?

Not always. Just because a competitor shifts pricing doesn’t mean you should. Instead:

• Consider whether their audience and positioning match yours.
• Test small changes before making a major shift.
• Focus on value-based pricing—charging based on what your ideal customers are willing to pay, not just what competitors do.

Competitive benchmarking helps you see where you stand, but pricing is an ongoing process. In the next section, we’ll dive into price testing—how to validate and optimize your pricing strategy without losing customers.

Price Testing and Iteration

Once you’ve set your pricing model, the next step is making sure it works. Price testing helps you validate whether customers are willing to pay what you’re charging, uncover opportunities for optimization, and reduce churn caused by pricing misalignment. Unlike traditional A/B testing for marketing, pricing tests require careful planning since customers react strongly to price changes.

1. Why Price Testing Matters

• Avoids leaving money on the table – Many SaaS companies undercharge for their value.
• Prevents pricing mismatches – If conversion rates are low, the problem could be pricing, not features.
• Reduces churn risk – A poorly executed price change can drive loyal customers away.
• Optimizes revenue growth – Pricing tweaks can lead to higher average contract values (ACVs) without increasing acquisition costs.

2. Common Price Testing Methods

A. A/B Testing (Limited Use in SaaS)

• What it is: Showing different price points to different groups of new customers to see which converts better.
• Pros: Provides direct feedback on willingness to pay.
• Cons: Hard to implement without upsetting customers if they compare notes.

💡 Best for: Self-service SaaS businesses with high sign-up volume.

B. Cohort Testing (More Common for SaaS)

• What it is: Offering different price points to new customers based on when they sign up.
• Pros: Helps measure long-term retention and revenue impact.
• Cons: Slower than A/B testing, but more stable.

💡 Best for: B2B SaaS companies with longer sales cycles.

C. Geographic or Market-Based Pricing Tests

• What it is: Adjusting pricing in different regions or customer segments.
• Pros: Less risky than global price changes, allows for localized optimization.
• Cons: May cause confusion if customers notice discrepancies.

💡 Best for: Companies expanding into new markets.

D. Soft Launch Pricing (Beta Testing)

• What it is: Offering new pricing to a small subset of new customers before rolling it out widely.
• Pros: Allows for customer feedback before committing to a change.
• Cons: Requires careful tracking to assess impact.

💡 Best for: Major pricing shifts or moving to new pricing models (e.g., switching to usage-based pricing).

3. Key Metrics to Track During Price Testing

• Conversion rate – Do more or fewer customers sign up at the new price?
• Customer acquisition cost (CAC) – Are you spending more to acquire customers at a new price point?
• Average revenue per user (ARPU) – Does the new pricing increase or decrease revenue per customer?
• Churn rate – Are more customers canceling due to pricing?
• Expansion revenue – Are existing customers upgrading at the same or better rate?

4. How to Roll Out a Price Change Without Losing Customers

1. Grandfather existing customers – Keep them on their current pricing to prevent backlash.
2. Clearly communicate the value of the change – Highlight improvements in product features or support.
3. Phase in price changes – Give customers time to adjust if they’ll be impacted.
4. Test first, then scale – Small-scale tests reduce risk before applying changes broadly.

5. When to Revisit Pricing

• Every 6-12 months for fast-growing SaaS businesses.
• After major feature releases that significantly increase product value.
• When competitors adjust their pricing models and market expectations shift.
• If conversion rates drop suddenly without another clear explanation.

Price testing isn’t a one-time event—it’s an ongoing process. The most successful SaaS companies treat pricing as a living strategy, refining it over time to align with value, market shifts, and customer demand.

In the next section, we’ll explore how to continuously monitor and refine your pricing strategy through ongoing research and calibration.

Ongoing Research and Calibration

Setting a pricing strategy isn’t a one-and-done process. Market conditions shift, competitors adjust, and your own product evolves. What worked a year ago might not work today. That’s why ongoing research and calibration are critical to ensuring your pricing remains competitive, sustainable, and aligned with customer expectations.

1. Why Pricing Needs Continuous Adjustment

SaaS founders often hesitate to change pricing, fearing customer backlash. But sticking with outdated pricing can cost more in lost revenue and lower customer lifetime value (LTV). Pricing should evolve for three main reasons:

• Market shifts – Competitors update pricing, new players enter, and customer expectations change.
• Product evolution – As your product improves, it becomes more valuable, justifying higher pricing.
• Monetization efficiency – You may be undercharging or missing opportunities for expansion revenue.

💡 Example: Slack originally priced itself per user, but after realizing customers wanted flexibility, they introduced prorated pricing for inactive users—helping reduce churn and improve retention.

2. How to Monitor Pricing Performance

Instead of waiting until revenue starts declining, set up a system to track key pricing metrics regularly:

A. Customer and Revenue Metrics

• Customer Acquisition Cost (CAC) – Are acquisition costs rising while conversion rates drop?
• Average Revenue Per User (ARPU) – Is your ARPU increasing over time, or are customers defaulting to lower-priced plans?
• Churn Rate – Are customers leaving due to pricing concerns?
• Expansion Revenue – Are existing customers upgrading or buying add-ons?

B. Market and Competitive Analysis

• Quarterly competitor pricing reviews – Are competitors increasing prices, launching new pricing models, or bundling features differently?
• Industry pricing trends – Are new pricing models (e.g., usage-based, AI-powered pricing) gaining traction?
• Customer sentiment tracking – Are customers asking about discounts more often or citing price as a reason for leaving?

💡 Pro Tip: Set a quarterly pricing review where you analyze these metrics and decide whether any adjustments are needed.

3. How to Optimize Pricing Over Time

Once you’ve identified trends, the next step is making targeted adjustments.

A. Adjusting Prices for New Customers First

Instead of rolling out a pricing change to everyone, test it with new signups first. If it works, then expand it to existing customers.

B. Bundling and Packaging Adjustments

• Reduce friction by reworking tiers (e.g., moving a popular feature to a lower-tier plan).
• Offer annual prepay discounts to increase cash flow.
• Introduce add-ons or usage-based pricing instead of raising core subscription costs.

C. When and How to Raise Prices for Existing Customers

• Grandfather current customers to avoid backlash.
• Give ample notice—at least 30-60 days for significant increases.
• Justify the increase by tying it to product improvements, better support, or new features.

💡 Example: Notion increased prices for business users but softened the change by expanding functionality and offering discounts to existing users.

4. When NOT to Change Pricing

• If the market is in a downturn – Raising prices in a recession or industry slowdown can backfire.
• If competitors are slashing prices – Price wars are rarely a good strategy in SaaS. Focus on differentiation instead.
• If your value proposition is unclear – If customers don’t understand why they should pay more, increasing prices won’t fix it.

5. Building a Pricing Feedback Loop

To ensure your pricing stays optimized over time:
✅ Survey customers regularly to gauge pricing sentiment.
✅ Train sales and support teams to gather pricing feedback from prospects.
✅ Run annual or biannual pricing experiments to test new models and value-based pricing adjustments.
✅ Stay flexible—what works today may not work in a year.

Pricing is an ongoing process, not a one-time decision. The SaaS companies that thrive are the ones that treat it as a strategic lever, not an afterthought.

By continuously researching, testing, and refining your pricing, you can maximize revenue, improve customer satisfaction, and stay ahead of competitors.