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Why Your Pricing Model Is Destroying Your Expansion Revenue

DEV Community·Jake·24 days ago
#Daq7nkLJ
#mismatch#saas#pricing#model#customer#usage
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Most pricing decisions in SaaS happen like this: the team looks at what the market leader is doing, what a recently successful competitor raised money with, or what the head of sales is comfortable explaining on a call. Then they pick that model. That process produces pricing that feels defensible in a board meeting. It rarely produces pricing that matches the product's actual expansion mechanics. Pricing is not a marketing decision. It is a structural decision that determines how your annual recurring revenue (ARR) grows inside existing accounts - or whether it grows at all.…

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