SaaS Pricing Glossary: Key Terms Every SaaS Entrepreneur, Marketer, and Tech Enthusiast Should Know

Tiered Pricing
A model that offers different pricing structures or levels depending on the quantity or features a customer chooses.
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Value-Based Pricing
A pricing method that determines cost based on the perceived value of the product or service to the customer.
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Price Skimming
A strategy involving setting high initial prices and gradually reducing them to maximize profit from different segments.
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Psychological Pricing
A marketing strategy that leverages customer perception, using tactics like setting prices slightly below a round number to make the product seem less expensive.
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Price Anchoring
A pricing technique that influences perception by setting a higher initial price, making subsequent prices seem more favorable.
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Trial Pricing Strategies
Marketing approaches businesses utilize to entice customers by offering them a product or service at a discounted or free price for a limited time.
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Cost Plus Pricing
A pricing method that involves adding a markup to the production cost of a product to determine its selling price.
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Charm Pricing
A proven marketing tactic that involves setting prices for products or services slightly below round numbers in order to make them appear more appealing to consumers.
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Bundle Pricing
A marketing strategy where businesses use bundle deals to offer related items or services at a discounted price, enticing customers to make multiple purchases at once.
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Odd Even Pricing
A psychological pricing strategy retailers use to leverage the belief that buyers are more sensitive to certain ending digits.
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Freemium Pricing
A pricing approach where a company provides a basic version of its product or service to users at no cost with limited features or functionality.
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Penetration Pricing
A business strategy in which a business sets a lower price for a new product or service during its initial phase in the market.
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Pricing Strategy
A method used to determine the optimal price for a product or service. It involves considering various factors to set a price.
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Geographical Pricing
A pricing approach where a seller sets different prices for the same product or service based on the consumer’s location or geography.
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High-Low Pricing
A pricing strategy where a company sets the initial price of its products or services higher than its competitors, but frequently offers sales, promotions, or discounts.
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Usage-Based Pricing
A payment model in which clients are charged depending on how much they use a service or product rather than a set cost.
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Decoy Pricing
A strategic pricing technique where businesses introduce a third, less appealing product or pricing tier alongside two others.
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Enterprise Pricing
A pricing model or strategy used primarily for products or services promoted to large organizations, institutions, or businesses rather than individual consumers.
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Captive Pricing
A pricing strategy in which a company bundles together two separate products and only sells them as a package.
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Market-Based Pricing
A pricing strategy that determines the price of a product based on what customers are prepared to pay.
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Everyday Low Pricing
A pricing strategy where businesses consistently maintain low product prices, avoiding frequent sales or discounts.
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Dynamic Pricing
A pricing technique in which businesses set flexible product or service prices based on current market demand. 
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Competitive Pricing
A pricing strategy that allows businesses to set their product prices based on their competitors’ prices.
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Economy Pricing
A pricing strategy where businesses price goods and services at a lower cost to appeal to price-sensitive customers
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Price Positioning
A strategic method businesses use to set the prices of their products or services in relation to their competitors.
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Loss Leader Pricing
A pricing strategy that allows business owners to sell products below their market cost to attract customers.
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