SaaS & Monetization · Pricing Strategy · Medium · 25-35 min

Repricing a SaaS Product

Last updated 2026-07-29

What is this case about?

A SaaS company prices per-seat, but customers are sharing logins and usage no longer tracks value — the heaviest users pay the same as light ones. AI features have also raised the company's cost-to-serve. Leadership is considering moving to usage-based or hybrid pricing. You're asked whether to change the model and how to do it without churning the base.

Where strong candidates start

  • Identify the value metric — what scales with the value the customer gets (seats, usage, outcomes)
  • Diagnose why per-seat is breaking — login-sharing, no link to value, AI cost-to-serve

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