Feature-based vs. Tiered Pricing: Which One Is Right for Your Business?

Feature-based pricing allows customers to pay only for the features they use, offering a customizable approach ideal for complex products. In contrast, tiered pricing offers packages with varying levels of features, support, and storage, catering to a broader customer base and providing clear value propositions. While tiered pricing benefits both businesses and customers, feature-based pricing might be better for SaaS businesses with complex offerings. Ultimately, the decision between feature-based and tiered pricing should be guided by customers' needs and how they value your offerings to ensure a sustainable long-term pricing model.