B2B Pricing Tiers: How to Design a Tiered Pricing Structure for B2B SaaS and Software
Tiered pricing -- packaging a product into 2-4 distinct tiers (commonly labelled Starter, Growth, Pro, and Enterprise, or Basic, Professional, and Enterprise) at different price points -- is the dominant pricing structure in B2B SaaS and software. When designed well, tiered pricing allows a vendor to serve multiple market segments (SMB, mid-market, enterprise) from a single product, to make the entry price accessible for smaller companies while capturing the higher willingness-to-pay of larger ones, and to create natural expansion paths (upgrade from Starter to Growth) that drive net revenue retention without requiring the sales team to renegotiate contracts from scratch.
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