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

Want to learn the lingo of SaaS pricing? Dive into our easy-to-understand guide! Our SaaS Pricing Glossary is packed with key terms that’ll make you sound like a pro in no time.

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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SaaS Pricing Glossary

Want to talk SaaS pricing like a pro? Our SaaS Pricing Glossary is your go-to guide! We’ve taken all the big, important terms and broken them down into easy-to-understand explanations.

Each term in our SaaS Pricing Glossary is more than just a definition; it’s a part of the big SaaS pricing picture. By exploring our glossary, you’ll pick up the language skills you need to make sense of and communicate about SaaS.

So step into our SaaS Pricing Glossary today and start getting the hang of the SaaS pricing world.

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