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Pricing test. The revenue curve.
Model conversion at 6 price points using elasticity. See where revenue peaks — and how badly you're leaving money on the table.
Inputs
Revenue at each price
Best price
$124
+25% vs current
Best revenue
$44,550
per month
Benchmark
Raise price 25%
Best revenue at $124 — $0 / mo upside.
How it works.
Most SaaS founders assume elasticity around -2 (very price-sensitive). Real B2B elasticity is usually -0.5 to -1.0 — meaning raising prices is the highest-ROI test you can run.
FAQ.
How do I test SaaS pricing?+
Three methods: (1) Van Westendorp surveys, (2) A/B tests on the pricing page, (3) cohort analysis (compare new-pricing cohorts vs old). All three triangulate; none alone is conclusive.
Is raising prices always good?+
Usually yes. Most SaaS founders underprice by 20-50%. Test a 25% hike on new customers only — current customers grandfathered, no churn risk.
What's price elasticity?+
How much demand drops when price rises. E = -2 means a 10% price hike loses 20% of customers (revenue down). E = -0.5 means a 10% hike loses 5% (revenue up). SaaS typically lands -0.5 to -1.5.
How often should I change pricing?+
Annually max. Mid-year changes hurt trust and create awkward grandfathering tables. Pick one annual revisit window and stick to it.
Should I show pricing publicly?+
Yes — unless you're enterprise-only. 'Contact us' pricing kills self-serve and adds 2-3 weeks to mid-market deals. Anchor with public tiers; reserve negotiation for enterprise.