Finding a pricing model that’s just right

Getting a pricing model right is crucial for any SaaS company, but finding one that works can be challenging. A startup's goals evolve over time, and the pricing model should adapt accordingly. The text describes three iterations of a pricing model for incident management tool incident.io. Initially, they used best guess-based pricing to attract customers and gather feedback. Next, they moved to vision-based pricing based on organization size but found it didn't resonate with all customers. Finally, they implemented value-based pricing focused on active incident responders, which has shown positive early indications from customers. Key takeaways include the importance of changing pricing models when necessary, focusing on the mechanism rather than just the numbers, ensuring revenue targets are met, understanding product value, and seeking customer feedback.