Pricing Your First SaaS Product: A Practical Guide for Solo Founders

You've built something people want. Now comes the hard part: how much do you charge?

Price too low and you leave money on the table — or worse, signal that your product isn't valuable. Price too high and nobody bites. Most founders guess, and most guesses are wrong. The good news is pricing isn't magic. It's a process.

Here's how to price your first SaaS product without overthinking it.

The short answer

Price based on the value you deliver, not the cost to build. Start with one price, test it with real people, and adjust based on what they tell you and what they do. Then add tiers once you understand what different customers need.

The options for pricing your product

Every pricing approach makes a tradeoff between accuracy and effort. Here are the main strategies and when each makes sense.

Option 1: Cost-plus pricing

You calculate your costs — hosting, tools, your time — add a margin, and charge that amount. If it costs you $10/month per user to run the service, you charge $20.

When it works: You're selling a commodity where costs are the main differentiator. Physical products and low-margin services often use cost-plus.

Where it falls short: Cost-plus ignores value entirely. A tool that saves a user $1,000/month is worth far more than your hosting bill. Pricing based on costs leaves that money on the table.

Best for: Products with predictable, proportional costs. Rarely the right call for SaaS.

Option 2: Competitor-based pricing

You look at what similar products charge and set your price in relation to theirs. Slightly below to compete on price. Slightly above to signal premium quality.

When it works: You're entering an established market with clear competitors. It gives you a starting point that won't seem outrageous to potential customers.

Where it falls short: Competitor pricing is a reference, not a strategy. If your product is different — even slightly — your pricing should reflect that. Blindly matching competitors ignores your unique value.

Best for: Getting a ballpark number when you have no other data.

Option 3: Value-based pricing

You estimate the quantifiable value your product delivers and charge a fraction of that. If your tool saves a freelancer 10 hours per month at $50/hour, that's $500 of value. Charge $50-100 and it's an obvious buy.

When it works: The value you deliver is measurable. B2B tools that save time, reduce cost, or increase revenue are ideal for value-based pricing.

Where it falls short: Value is hard to measure for some products. A journaling app or a habit tracker delivers real value, but putting a dollar number on it is difficult.

Best for: B2B SaaS where you can calculate ROI for your customers.

Option 4: Tiered pricing

You offer multiple plans at different price points — typically three tiers (Good, Better, Best). Each tier includes progressively more features or usage limits.

When it works: Your product serves different types of users with different needs. Tiered pricing captures value from each segment without turning anyone away.

Where it falls short: Bad tier design confuses customers. If the differences between tiers aren't clear, people choose the cheapest out of uncertainty. And too many tiers create decision paralysis.

Best for: Most SaaS products. It's the standard for a reason.

Pricing approaches compared

Approach	Effort	Risk	Upside	Best when
Cost-plus	Low	High	Low	Commodities with predictable costs
Competitor-based	Low	Medium	Medium	Entering an established market
Value-based	High	Medium	High	B2B with measurable ROI
Tiered	Medium	Low	High	Multiple user segments

Value-based pricing with tiered delivery is the gold standard for SaaS. Use value-based to set your anchor price, then build tiers around it.

The tiered pricing playbook

If you decide tiered pricing is right for your product — and for most SaaS products it is — here's how to structure it.

The three-tier structure

The standard pattern is Good, Better, Best. Here's how each tier should feel:

Good (entry tier): Solves the core problem with limits. Enough to deliver value, but constrained in usage, features, or support. This is often free or very cheap.
Better (middle tier): Removes the most painful limits. This is where most of your revenue comes from. Price it for the customer who needs the full solution.
Best (top tier): Everything unlocked plus extras. This exists mostly to make the middle tier look reasonable — it's the anchor that drives people to Better.

The anchoring effect

When you see a $199 plan next to a $49 plan, the $49 plan feels like a deal — even if you would have balked at $49 on its own. That's the anchoring effect. Your top tier exists to make your middle tier the obvious choice.

What to put in each tier

Avoid arbitrary limits. Every feature in every tier should exist because it serves that customer. A solo founder doesn't need 10 waitlists or 25,000 subscribers — so those limits on the free tier aren't punitive, they're appropriate.

Good features for differentiation: usage limits, team seats, advanced features, support level, custom branding.

A real example: GetWaitly's pricing

I went through this process myself when building GetWaitly. Here's how it played out.

The product is a waitlist tool for indie hackers and solo founders. Most users need one waitlist and a few hundred subscribers. Power users need multiple waitlists, broadcast emails, and subscriber management at scale.

The value is clear: a solo founder who validates their idea with a waitlist avoids months of building the wrong thing. That's worth thousands. But the price needs to match the customer — indie hackers with limited budgets.

The resulting tiers. The Launch plan at $12/mo is the most affordable paid option — designed for solo founders who need more than the free plan without breaking the bank.

Free ($0): 1 waitlist, 100 subscribers. Enough to validate a single idea.
Launch ($12/mo or $120/yr): 3 waitlists, 1,000 subscribers, broadcast emails, remove branding. The most affordable paid option for indie hackers.
Growth ($34/mo or $340/yr): 10 waitlists, 10,000 subscribers. For growing products with real traction.
Scale ($89/mo or $890/yr): Unlimited waitlists, 25,000 subscribers. For products that have outgrown the early stages.

These are early adopter prices — locked in forever for existing subscribers.

I don't share this as "here's how you should price" but as "here's how one founder thought about it." Your product, audience, and costs are different. The process — understand value, segment users, build tiers, test with real people — is what transfers.

How to find your price

The methods above give you a range. Here's how to narrow it.

Step 1: Pick a number

Use value-based pricing to find your anchor. If you save a customer 5 hours per month at $50/hour, that's $250 of value. Charge $25-50 — roughly 10-20% of the value you create.

Step 2: Test with real people

Put a price on your landing page. See if people sign up. If they do, you have signal. If they don't, the price might be wrong — or the value might not be clear enough.

Watch for specific signals:

People sign up but churn quickly → price is fine, retention is the issue
People hesitate at checkout → price is too high or value isn't clear
People say "this is cheap" → you're probably undercharging

Step 3: Adjust

Raising prices is easier than lowering them. Start slightly higher than comfortable. You can always add a discount or a lower tier. It's much harder to raise prices after launch.

Step 4: Add tiers once you have data

Don't start with four tiers. Start with one price. As you learn how different customers use your product, build tiers that match their needs. The best tier structures come from usage data, not guesses.

FAQ

Should I offer a free plan?

A free plan is a marketing expense, not a pricing strategy. It can be effective if it leads to paid conversions. It's a mistake if it attracts users who will never pay. Free works best when there's a clear upgrade path and the free tier is genuinely limited.

How do I know if my price is too high?

Conversations stop. People visit your pricing page, then leave. You get questions about value but few signups. If engagement is high but conversion is low, the price might be the blocker. Try lowering it or adding a cheaper tier.

When should I raise prices?

When you have more demand than you can handle, or when you've added significant value since your last pricing. Raise prices for new customers first — grandfather existing customers at their current rate. This lets you test higher prices without risking your existing revenue.

Annual vs monthly?

Offer both. Annual at a discount (15-20% off) improves cash flow and reduces churn. Most SaaS products see 20-40% of customers choose annual when given the option.

How many tiers should I have?

Three is the sweet spot. Two doesn't give enough differentiation. Four or more causes decision paralysis. Three tiers with clear progression is the standard for a reason.

Ready to launch your waitlist and test your pricing? Start free in 5 minutes → No credit card required.

Related guides

How to Know If Anyone Will Pay for Your Idea — testing willingness to pay before you build the full product
Email vs Waitlist vs Landing Page: Which Comes First? — choosing the right channel to capture demand once you've set your price
How to Build an Audience Before Your Product Is Ready — building an audience that's ready to buy at your price point
How to Get Your First 100 Users — converting your first paying customers
The Indie Hacker's Complete Pre-Launch Stack: 4 Tools You Actually Need (and 3 You Don't) — One tool replaces four. Here's the simple pre-launch stack for indie hackers.