How to Price Your SaaS When You Have No Idea What to Charge (2026)
A practical guide to pricing your SaaS from scratch: how to talk to users about price, tie pricing to value, structure tiers, choose annual vs monthly, and why underpricing kills more startups than overpricing
If you have no idea what to charge for your SaaS product, you should start by talking to people who might use it. Ask them what they currently pay for similar products and what your product would save them. Then you can set a price based on the value your product gives them, not on what it costs you to make it.
It's a good idea to offer three different price options. This way, people can choose the one that works best for them. You should also start with a price that's a little higher than feels comfortable. You can always lower the price later. It's harder to raise it once you've set it.
The important thing to remember is that charging too little can hurt your business more than charging too much. When you charge too little, you might not make enough money to grow your business.
Step 1: Talk to users first
Before you decide on a price, talk to people who might use your product. Ask them what they currently pay for similar products and what your product would save them. You can ask them three questions:
- What do you currently use for this, and what does it cost?
- What would this product save you, in time, money, or headcount?
- What price would feel reasonable? What price would feel like too much?
Step 2: Price on value, not on cost
Your costs aren't important to the people who might buy your product. What matters is the value your product gives them. Think about what your product does for them:
- Does it replace a job or a person they'd otherwise have to hire?
- Does it save them time or money?
- Does it help them make money?
- Does it help them achieve a goal? Set your price based on the value your product gives them.
Step 3: Check what your competitors charge
Look at what other companies charge for similar products. Decide where you want to fit in compared to them. You might want to charge more or less, but make it a conscious decision. Don't just default to being the cheapest option.
Step 4: Start with a higher price than feels comfortable
Most people starting a business set their prices too low. It feels safer, but it limits your revenue and attracts customers who are overly price-sensitive. Start with a price that's a little higher than feels comfortable. You can always lower it later.
Step 5: Offer three price options
Offer three price options: low, medium, and high. Most people will choose the middle option, so make sure it's the best value. The low option is for people who are just starting out. The high option is for people who need more features.
Make it clear why someone would want to upgrade from one tier to the next. Each upgrade should give them something they'll genuinely need as their business grows.
Step 6: Charge annually where you can
Offer people the option to pay annually, and give them a discount for doing so. This can help your cash flow and reduce churn.
The one rule to remember is that charging too little can hurt your business more than charging too much. When you're unsure, pick a price. You can always lower it later.
A pricing checklist
- Talked to potential users about what they pay and what your product would save them
- Set your price based on the value your product gives them, not on what it costs you
- Looked at what your competitors charge and made a conscious decision
- Started with a price that's a little higher than feels comfortable
- Offered three price options, with the medium option being the best value
- Gave people a clear reason to upgrade from one option to the next
- Offered annual payments with a discount
Where Okara fits
Okara is a tool that helps with marketing and growth. It can study your competitors, define your positioning, and create content that attracts buyers. It can also run your social media presence. Okara doesn't set your price, but it can help you find the right customers once you've set it.
Frequently asked questions
How do I set a price for my SaaS product if I have no data?
Start by talking to users about what they pay and what your product would save them. Then set your price based on the value your product gives them. Offer three price options, and start with a price that's a little higher than feels comfortable.
Should I set my price based on my costs?
No, you should set your price based on the value your product gives to the customer.
How many price options should I offer?
You should offer three: low, medium, and high.
Is it better to charge annually?
You should offer both options, and encourage people to pay annually by giving them a discount.
Is it worse to charge too little or too much?
It's generally worse to charge too little. This can limit your revenue and attract customers who are overly price-sensitive.