Ask HN: What's the best pricing strategy for SaaS?

Both the Retool and Segment founders talk about "unreasonable quoting". The algorithm goes as follows:

1. Meet with customer

2. Take your ask, multiply it by 1000x

3. If customer isn't happy, divide number by 10

4. If customer still isn't happy, divide by 10 again

5. Eventually get down to the number you were willing to sell

6. Rinse and repeat.

You'll find that you may not get to step 5 as often as you think (customers pay more than you think they will)

Yearly subscriptions with pre-payment are great for your cashflow, you should therefore always try to get your customers to sign up for a yearly plan. We e.g. offer a risk-free refund policy for that reason: If you're unhappy with the product you can cancel at any time during the yearly subscription, we will then retroactively charge you the monthly price and refund the remaining balance (I understand this might be difficult in your case). We offer our yearly subscriptions at a 20 % discount and most of our customers choose those.

In the meantime, you can watch this video by Michael Dearing on pricing https://www.heavybit.com/library/video/harrison-metals-micha...

This one from David Skok covers metrics in general, prepayment also covered: https://www.forentrepreneurs.com/saas-metrics-2/

Have you considered:

One tier and one price? Make it simple.

Consider this, how much time/money/effort do you want to spend incentivizing multiple tiers of payment which may or may not just stress out the user to not sign up?

Rule #1: Charge more than you think you should charge