Newsletter · short read

Your pricing is (probably) broken: Here's how to fix it

Kyle Poyar · Growth Unhinged Free Intermediate

Takes the three models most companies use (flat fee, feature tiers, per seat), names how each one fails, and gives specific repairs like price escalators, fair use policies and lite user seats. Diagnostic rather than inspirational.

  • A premium tier priced 50 to 100 percent higher typically gets 15 to 25 percent uptake, worth roughly 15 percent more revenue.
  • One in three B2B contracts carries an automatic price escalator, usually 5 to 8 percent a year.
  • Ship 1 or 2 new features a year as standalone add-ons, then bundle them into packages about every 18 months.
  • A lite seat usually prices at 10 to 40 percent of a power user seat.
  • Good, Better, Best leaks revenue because almost everyone defaults to the middle tier.

It answers 2 questions

  1. How do I design tiers so buyers pick the right plan and grow into the next one?
  2. How do the best companies raise prices without losing customers?

Read with it

  1. Answers the two packaging questions that actually come up: when to bundle a new feature into a tier and when to sell it as an... Growth Unhinged Newsletter · 6 min read Your guide to SaaS packaging 201 Kyle Poyar
  2. Survey data from 230 B2B software and AI companies, so you can see what your peers are actually charging rather than what... Growth Unhinged Report · long read The state of B2B monetization in 2026 Kyle Poyar
  3. Shows how average contract value really grows as a company scales from seed to IPO, and makes the case that most of the gain... Growth Unhinged Newsletter · short read How to have 'the talk' with your customers Kyle Poyar
  4. Maps tiers to how adoption actually spreads (casual user, professional, team, organisation) rather than to a feature matrix,... Andreessen Horowitz Article · long read Bottom Up Pricing & Packaging: Let the User Journey Be Your Guide Jennifer Li and Martin Casado
  5. The operational side of a price change: tiered rollouts, grandfathered rates, what to communicate and when, plus data showing... Chargebee Article · long read Navigating Monetization Strategies: How to Iterate Pricing While Keeping Your Customers Happy Kim Courvoisier
  6. Podcast · 45 min Getting SaaS pricing right (1/2) - Varun Shoor, Kayako | BTS E14 | SaaSBoomi Podcast Varun Shoor
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