SaaS · Pricing strategy
Test whether growth creates value.
Pricing, plan mix, customer acquisition and retention economics connected to gross margin and cash, not analysed in isolation.
The business problem
Understand what drives the result.
SaaS businesses can grow ARR while slow payback, discounting and rising delivery costs make that growth unsustainable.
Scope, source information and the level of supporting documentation determine the procedures and deliverables.
Potential deliverables
- Pricing architecture and plan-mix model
- Gross margin by product or customer segment
- CAC and LTV definitions and calculations
- Payback and contribution economics
- Pricing scenarios
- Linkage to the broader SaaS forecast
From assumptions to decisions
Questions the work should answer
01 / QUESTION
Which price changes improve contribution?
02 / QUESTION
How does churn affect LTV?
03 / QUESTION
Which segments have healthy payback?
How the model is structured
Clear inputs. Traceable calculations. Useful outputs.
The method is designed to reduce manual overrides and expose the assumptions behind the numbers.
- Audit definitions and customer unit economics
- Model per-unit revenue and service cost
- Evaluate acquisition economics and retention
- Integrate pricing scenarios into cash planning
Let’s put the numbers under scrutiny.
Tell me the model, the decision, the source information and the deadline. We will define a scope that fits the evidence.
Technical finance guide
Review the methodology in detail.
Walk through a worked numerical example, model mechanics and the checks that matter for this service.
Read the SaaS unit economics guide ↗