Pricing Isn’t a Number – It’s a Story
By Lyn Blanchard FCMC
Let me tell you about the founder of a SaaS startup I worked with not long ago.
She had built an incredibly robust platform that automated compliance tracking for biotech startups. Her product saved teams dozens of hours—and potentially thousands of dollars—in regulatory headaches.
But she priced it at $49/month.
When I asked why, she said, “I want to make it affordable.”
A noble goal—but her price was telling the wrong story.
Because in go-to-market strategy, pricing isn’t a number. It’s positioning. It’s storytelling.
It’s your silent spokesperson, shaping how customers perceive your product—before they even try it.
What Your Price Really Says
When a customer sees your price, they’re not just doing math.
They’re making judgments:
- Can I trust this product?
- Is it serious or lightweight?
- Is it for someone like me?
- Does it solve a big problem or a minor one?
If you’re underpriced, buyers might assume:
- You’re not enterprise-grade.
- Your product lacks sophistication.
- You don’t understand their industry.
If you’re overpriced without justification, they might assume:
- You’re out of touch.
- You’re not delivering value.
- You’re padding your margins.
The goal is to price in a way that supports your story—your value, your differentiation, your customer’s outcome.
Value-Based Pricing: The Strategy That Wins
There are many ways to price:
- Cost-plus (cost + margin)
- Competitor-based (matching or undercutting the market)
- Feature-tiered (starter vs pro vs enterprise)
But the most powerful method—especially in early GTM—is value-based pricing.
This means pricing based on:
- The problem’s cost to your customer
- The benefits you deliver
- The ROI of solving it
Ask:
What’s the pain point worth to fix?
What would they pay to avoid failure, save time, or get promoted?
One client I worked with helped engineering teams reduce downtime. The average cost of one hour of downtime? $10,000. Their platform reduced downtime by 15%.
We raised their price from $299/month to $2,500/month—and churn decreased. Why? Because the price finally matched the value.
How to Find Your Value Metric
Every GTM pricing strategy should align with what your customer cares most about. That’s your value metric.
Examples:
- Mailchimp charges per number of email contacts.
- Canva charges per team member or design access.
- Salesforce charges per seat.
- HubSpot charges based on contact volume and features.
Your value metric should be:
- Predictable (so you can forecast revenue)
- Scalable (so your pricing grows with usage)
- Aligned with outcomes (so customers link price to success)
Signs Your Pricing Is Off
Here’s how you know your pricing strategy needs help:
- Your best-fit customers don’t convert. You may be priced out of their trust range.
- You’re getting “too cheap” comments. Believe them—cheap isn’t always attractive.
- You’re attracting the wrong customers. High-support, low-value clients signal misalignment.
- Your churn is high. Often, low prices attract dabblers, not committed users.
A Quick Pricing Audit (Try This)
Ask five customers:
- What is the primary value you get from our product?
- What would it cost you to do this manually or with another tool?
- What would be too expensive to consider?
- What would be too cheap to trust?
- What price would feel “about right”?
You’ll find your sweet spot between value, trust, and margin.
Price Anchoring: Why Options Work
Psychology plays a big role in GTM pricing strategy.
That’s why tiered pricing (think: Basic / Pro / Enterprise) is so effective. It anchors perception:
- The “middle” tier feels reasonable.
- The high tier adds perceived credibility.
- The low tier lowers friction for trials.
Make sure each tier tells a clear story:
- Basic = Start solving your problem
- Pro = Solve it for the whole team
- Enterprise = Solve it at scale, with support
Remember: your tiers aren’t just pricing. They’re buyer identities.
But What If You’re Just Starting?
Early-stage founders often fear pricing high: “Won’t that scare people away?”
Here’s what I say: It’s easier to lower prices than raise them later.
Start by:
- Offering a founding customer discount
- Positioning early access as exclusive
- Tying pricing to specific outcomes
Also, keep pricing flexible. Your GTM strategy should include feedback loops that help you adjust pricing quarterly based on:
- Close rates
- Churn patterns
- Customer interviews
Real-World Case: Pricing Pivot in B2B SaaS
I consulted for a project management tool targeting law firms. Originally priced at $29/user/month, they were getting traction—but not respect.
We worked together to:
- Reposition the product as a compliance and profitability tool, not just task tracking.
- Rebuild the pricing tiers to reflect firm size and outcomes.
- Raise prices by 3x.
Their next two deals were 5-figure contracts. Why? Because the new price reflected the client’s risk reduction and the cost of inefficiency.
Let’s Get Your Pricing Story Right
I’m Lyn Blanchard, and I help startups and scaling companies align their pricing strategy with their brand, their value, and their growth goals.
If your price is sending the wrong message—or if you’re leaving revenue on the table—it’s time to rethink your approach. Call me to discuss and we can work out a pricing strategy.
- S Prev
- s
