How Will SaaS Pricing Look in 2025?
Dynamic pricing, price increases… in 2024, prices made all the headlines, and awareness of their importance has spread widely. But have you noticed how what we’ve called “modern pricing” in recent years is starting to look old-fashioned? What will change in 2025?
Common Pricing Practices Until Today:
🔴 Subscription-Based: Recurring fees for access to products or services.
🔴Per Seat Pricing: Charging based on the number of users.
🔴Linear Price Increases: Adapting prices, incrasing +X% per year.
🔴Dynamic Pricing: Prices based on market conditions or demand.
🔴Copycat Pricing: The classic “Bronze, Silver, Gold” (Good, Better, Best) plans, used just because everyone else is.
How Pricing Will Evolve in 2025:
Customers, both businesses and indiuviduals, start to be tired of vanilla subscriptions and require an increased transparency; while at the same time, businesses increasingly realize to which extent they have to rely on pricing to moving their topline.
These are the main trends we observe and how we believe they will impact the way companies price thei products and services in 2025
✅ Subscription Fatigue: Customers are tired of endless subscriptions. Models that blend ownership with flexible, hybrid options are on the rise.
✅ Free Seats, More Usage: Instead of charging per user, companies offer free seats to encourage widespread adoption, then monetizing through advanced features or usage volume.
✅ Outcome-Based Pricing: Pricing will align more closely with the customer’s success, tying costs to the actual value delivered. The price will increase automatically with the value and outcome produced.
✅ Transparent Pricing: Dynamic and personalized pricing is here to stay, but customers expect openness about how prices are set. Fairness and transparency will be key.
✅ Pricing as a differentiator: Companies will increasingly move away from cookie-cutter models, creating pricing structures tailored to their unique needs and customer expectations.
What Does This Mean?
Copying competitors won’t cut it anymore. It’s about adopting the customer’s perspective and shifting the pricing exercise from something mechanical to something strategic.
Business leaders and product executives will have to turn the perspective: What outcomes matter most to the customer? What will they consider fair? How can prices be indexed based on customers’ outcomes?
My name is Salva, I am a product exec and Senior Partner at Reasonable Product, a boutique Product Advisory Firm.
I write about product pricing, e-commerce/marketplaces, subscription models, and modern product organizations. I mainly engage and work in tech products, including SaaS, Marketplaces, and IoT (Hardware + Software).
My superpower is to move between ambiguity (as in creativity, innovation, opportunity, and ‘thinking out of the box’) and structure (as in ‘getting things done’ and getting real impact).
I am firmly convinced that you can help others only if you have lived the same challenges: I have been lucky enough to practice product leadership in companies of different sizes and with different product maturity. Doing product right is hard: I felt the pain myself and developed my methods to get to efficient product teams that produce meaningful work.