Let’s be honest—changing your SaaS pricing model is one of the riskiest moves a business can make. It’s not just about what you charge, but how you communicate it. One wrong step can turn loyal users into loud critics. But when done with care, the same change can build deeper trust, show value, and even boost growth.

 

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Let’s talk about Canva. They introduced new AI features and increased prices by up to 300% for some users. The backlash was swift, especially from small businesses and educators who relied on Canva’s affordability. In response, Canva rolled back the price hike for long-standing customers, acknowledging the importance of their core user base.

 

Similarly, Unity faced criticism when it announced a new “Runtime Fee,” charging developers each time their game was installed. The developer community reacted strongly, leading Unity to cancel the fee and revert to its previous pricing model.

 

These examples make one thing clear: the way you change your SaaS pricing model is just as important as the change itself.

 

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Why SaaS Companies Are Embracing Usage-Based and Hybrid Pricing Models

 

The shift toward usage-based and hybrid pricing models is gaining momentum. According to OpenView Partners, nearly two-thirds of SaaS companies have adopted usage-based pricing, with another 21% planning to experiment with it.

 

Why the change? Customers now expect to pay for what they use. Usage-based models align costs with value, offering flexibility and scalability. Hybrid models combine the predictability of subscriptions with the adaptability of usage-based pricing, catering to diverse customer needs.

 

This approach is particularly relevant as AI integration increases operational costs. Companies like Vercel and Replit have adopted usage-based pricing to align revenues with rising infrastructure expenses.

 

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When SaaS Pricing Model Shifts Go Wrong

 

Canva’s significant price increase, justified by new AI features, caught many users off guard. The lack of clear communication and the abruptness of the change led to widespread dissatisfaction. Recognising the misstep, Canva reinstated legacy pricing for existing customers.

 

Unity’s introduction of the “Runtime Fee” was met with immediate backlash. Developers felt blindsided, leading to a loss of trust. Unity eventually cancelled the fee, but the damage to its reputation lingered.

 

These cases underscore the importance of transparency, timing, and customer engagement when implementing a shift in a SaaS pricing model.

 

 

Why Do Businesses Keep Making These Pricing Mistakes?

 

It’s easy to point fingers in hindsight, but these SaaS pricing model missteps are common for a reason.

 

Often, the people driving pricing decisions are too far removed from the customer experience. Product teams get excited about new features. Finance teams push for revenue growth. Executives see the numbers but not the daily pain points of users. Somewhere in that mix, the human element gets lost.

 

There’s also the assumption that added value justifies any price hike. But what’s valuable to the business isn’t always perceived as valuable by the customer, especially if it wasn’t something they asked for.

 

Another reason? Speed. In fast-moving markets, leaders feel pressure to act quickly. But rushing a pricing change without testing, feedback, or a phased rollout often leads to shock and backlash.

 

It’s not that companies don’t care. It’s that in the drive to scale, they forget: pricing isn’t just a lever—it’s a relationship. And like any relationship, trust is easy to lose, hard to win back.

 

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How Top SaaS Companies Nail SaaS Pricing Model Shift

 

1. Show the Value — Before adjusting prices, clearly communicate the added value customers will receive. Whether it’s new features, improved performance, or enhanced support, ensure customers understand the benefits.

2. Ease Into It — Implement changes gradually. Provide ample notice and consider phasing in increases to allow customers to adapt.

3. Reward Loyalty — Offer existing customers the option to retain their current pricing for a period. This gesture acknowledges their loyalty and eases the transition.

4. Be Open and Clear — Use dashboards and clear communication to help customers understand their usage and costs. Transparency builds trust and reduces confusion

5. Avoid Shocks — Avoid sudden, significant price hikes. If substantial increases are necessary, explain the reasons thoroughly and provide options to mitigate the impact.

 

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Strategic Pricing Is Clear, Careful, and Customer-Focused

 

A SaaS pricing model should be approached with the same care as product development. Engage with customers, gather feedback, and iterate. Consider pricing as a component of the overall user experience.

 

In the evolving SaaS landscape, pricing strategies must be customer-centric. Transparent communication, gradual implementation, and a focus on value are key to maintaining trust and driving growth.

 

By learning from past missteps and prioritising the customer experience, companies can navigate pricing changes successfully.

 

Pricing changes are never easy, but they don’t have to cost you trust or growth. With the right steps, you can guide your customers through change and come out stronger. If you’re unsure where to start or want a second opinion, we’re here to help. 

 

Whether you’re rethinking your SaaS pricing or making adjustments in another industry, let’s talk it through. Reach out anytime for a practical, no-fluff conversation about what works. Your pricing should support your goals, and we’d love to help you get it right.

 

For a comprehensive view of maximising growth in your company, Download a complimentary whitepaper on Future Proof Your Pricing Strategy.

 

Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

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