Guide · Pricing

How to price a SaaS with no competitors

There is no market rate for a thing that did not exist last month. Here is what to anchor to instead, and where real products actually landed.

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$13.40
Median monthly ARPU
$6
25th percentile
$30.47
75th percentile
3,696
Startups measured
The short answer

Price against the cost of the problem, not the cost of the product: work out what the customer already spends on it each month in time, tools or outsourced help, and charge a visible fraction of that. Then sanity-check the number against what comparable products actually charge, which across 3,696 tracked startups is a median of $13.40 per user per month. Commit to the price for 90 days before you judge it, because a price tested for two weeks tells you nothing.

What to anchor to when there is nothing to copy

Competitor pricing is a crutch, and when you are genuinely first there is nothing to lean on. But your customer is not comparing you to nothing. They are comparing you to what they do today, which is always one of four things: a spreadsheet, a person, a tool they misuse for the purpose, or living with the problem.

That workaround has a price, and it is the only benchmark in the room. So the sequence is:

  1. Name the workaround precisely. Not "they do it manually" but "the office manager rebuilds this spreadsheet every Monday morning."
  2. Cost it per month. Hours times a defensible hourly rate, plus any tool or contractor spend it replaces. Ask the customer to do this arithmetic out loud; their number is worth more than yours.
  3. Price at a fraction of that number. Low enough that the saving is obvious without a spreadsheet, high enough that you are not competing with free. If the problem costs them $800 a month, a price in the tens of dollars is an easy yes and a price in the hundreds is a real conversation.
  4. Say the number out loud, first, without flinching. The most common pricing failure is not a wrong number, it is discounting before anyone objected.

The trap in this method is a customer with a real problem and no money. Pain is necessary but not sufficient, and it is the mistake that quietly kills otherwise sensible products:

The product was genuinely good. Could not get a single person to pay for it. Why? His entire audience was unemployed. They had massive pain sure but zero purchasing power.

via r/SaaS

What comparable products actually charge

Once you have a number from the problem, check it against reality. This is the part most pricing advice cannot give you, because it requires actually measuring products rather than reasoning about them.

The category you are in moves this a lot, and it moves it in a direction worth understanding before you copy a price you saw somewhere:

CategoryProductsMedian ARPUMedian MRRMedian subscribers
Marketing213$30.94$2767
E-commerce55$26.00$1436
SaaS (horizontal)352$21.05$1556
Artificial Intelligence931$18.59$2079
Analytics87$18.00$774
Content Creation168$15.83$1176
Developer Tools164$12.25$695
Social Media77$11.99$1107
Fintech96$10.50$835
Design Tools77$10.48$1248
Education170$8.72$18522
Productivity214$7.00$505
Mobile Apps282$5.88$14423
Utilities62$5.52$616
Health & Fitness169$5.00$12116

The pattern is the useful part. Marketing sits at $30.94 and Health & Fitness at $5.00, a sixfold spread, and it is not because marketing software is six times better. It is because marketing software is bought by a business against a revenue line, and fitness apps are bought by a person against their discretionary income. Who signs the cheque sets the ceiling.

Note the last column too. Mobile Apps and Education reach their median revenue through 22 to 23 subscribers at low prices; Analytics gets there with 4 at high ones. Both are viable. They are completely different companies, and you are choosing which one you are running when you set the price.

Monthly, one-time, or usage

Charge monthly if you keep delivering value monthly: hosting the data, shipping updates, answering support, absorbing the cost of the thing running. Charge one-time for something genuinely used once, like a generator or a template pack.

The honest case for one-time pricing, which subscription orthodoxy tends to skip, is that it is easier to sell when nobody has heard of you. A buyer who does not know whether you will still exist in six months is being asked to take a much bigger risk on a subscription than on a single payment.

if people do not know you yet, asking them to pay every month can be a harder decision. they do not know if they will use the app long term. they do not know if you will keep improving it.

via r/SaaS

If your costs scale with usage, and with AI features they now usually do, neither model is safe on its own. Put a usage component in from the start. Retrofitting one onto customers who signed up for unlimited is one of the worst conversations in software.

If nobody pays

  1. Ask the five people who said no what they do instead. The answer is usually a positioning problem wearing a pricing problem’s clothes: they did not understand what it replaced.
  2. Cut scope before cutting price. A smaller product at the same price beats the same product at half price, because the second teaches you nothing and halves your runway.
  3. Check you are selling to someone with a budget. See the quote above. This is the single most common cause and the hardest to admit.
  4. If you must go lower, do it as a named plan. A "Starter" tier is a product decision. A discount on your real plan is a signal that the real plan was never worth the number, and it is very hard to walk back.

Commit for 90 days

Pricing feedback is slow. A price needs enough traffic to produce a pattern, and at the volumes an early product sees, two weeks of data is noise. Founders who change the number monthly never learn anything from any of the numbers.

Set it, publish it, leave it for 90 days, and record every objection verbatim. Then read the objections. If they are about the price, you have a pricing problem. If they are about whether it works, you have a proof problem, and no price fixes that. When you are ready to move the number up, the mechanics are in how to raise SaaS prices without losing customers.

Quick answers

How do you price a product with no competitors?
Anchor to the cost of the problem rather than the cost of the product. Work out what the customer currently spends on the problem each month in hours, tools or outsourced help, then price at a visible fraction of that so the arithmetic is obvious to them. With no competitor to compare against, the customer's existing workaround is the only benchmark they have.
What is the average price of a SaaS product?
Lower than most founders assume. Across 3,696 tracked startups reporting both revenue and subscriber counts, median revenue per user is $13.40 a month. The 25th percentile is $6 and the 75th is $30.47. Only the top decile clears $77.82 per user per month.
Should I charge monthly or one-time?
Charge monthly when you keep delivering value monthly through hosting, updates and support, and one-time when people genuinely use the thing once. A subscription is harder to sell and produces a business you can forecast; a one-time sale is easier to close and resets your revenue to zero every month.
Is it better to start with a high or low price?
Start higher than feels comfortable, because raising a price is a harder conversation than lowering one. A low launch price attracts customers who chose you on cost, which is the group most likely to leave, and it caps what you learn: nobody objecting to the price tells you nothing about whether the value is real.
How many pricing tiers should a new SaaS have?
One, or at most two. Every tier is a decision you hand to someone who understands the product less than you do, and early on you do not yet know which features separate a casual user from a serious one. Add the second tier when customers start self-sorting on their own.
Should I offer a free plan?
Only if free users make the product better for paying ones, through data, content or network effects, or if they convert at a rate you have actually measured. Otherwise offer a time-limited trial. A permanent free tier on an unvalidated product mostly buys you support load and a signup number that does not predict revenue.
Where these numbers come from

ARPU is computed as monthly recurring revenue divided by active subscriptions, on 22 September 2026, across the TrustMRR corpus of 8,651 tracked startups. The 3,696 included are those reporting both MRR above zero and at least one active subscription. Category medians are shown only for categories with at least 40 qualifying products. These are self-reported figures from founders who chose to publish revenue publicly, so they over-represent products willing to show a number and under-represent both silent failures and private enterprise pricing.

Cite this page
Last verified: September 22, 2026
BigIdeasDB Research. (2026). How to price a SaaS with no competitors. BigIdeasDB. Retrieved from https://bigideasdb.com/guides/how-to-price-a-saas-with-no-competitors
Founder, BigIdeasDB
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