Discover the enterprise budget instead of inventing a price
Security researcher and CTF player running AISafe Labs
Corporations of a certain size already run a budget line for your category: security, compliance, developer tooling, whatever the shelf is called internally. The money exists and procurement is used to spending it, so the pricing call is less "convince them to pay" and more "discover the number." On discovery, ask what the team already spends on adjacent tools or what last year's budget for the category was, and land inside the familiar range. The absolute number matters less than being in a bucket finance does not have to fight for. Founders who invent a price from scratch almost always land below the budget the buyer was ready to spend.
Related advice
Price on-prem for the support reality, not the demo
On-prem is not SaaS with a different installer. Once the software lives inside a customer network you lose live logs, hotfix freedom, and telemetry unless you explicitly negotiated for them. Support engineers spend materially more time per customer on debugging, upgrades, and escalations than any SaaS cost model captures, and that time has to be priced in before you name a number. If on-prem is priced like SaaS, the first production incident eats the margin on the account. The safe heuristic is to model a realistic support load per customer per year, multiply by a loaded engineering rate, and treat that number as the floor, not a contingency.
Add a premium tier based on what customers ask for
Don't guess what people will pay for. Wait for them to tell you. Mircea never planned SingleFax's $99 lifetime tier. Customers asked for it by email, he built it in an afternoon, and it became a significant revenue stream. The best product roadmap is your inbox.
Price so low it removes all friction
$19/year sounds like leaving money on the table. But consider the alternative: a $19/month subscription requires convincing someone your product is worth $228/year, handling cancellations, dealing with failed payments, and competing with every other subscription fighting for budget. At $19/year, the price is never the objection. Raul's conversion rate proves that removing friction can beat optimizing price.
Tiered pricing unlocks hidden revenue
Vlad's single $9/month plan seemed simple and fair. Switching to three tiers ($10/$50/$200) increased his MRR by 4x. The lesson: different users get different amounts of value from your product. A hobbyist and a business running production workflows should not pay the same price. Start with tiers early. You can always simplify later, but you can't recover the revenue you've been leaving on the table.
Extracted from
Indie TM #7: News as a Traffic Locomotive