[yoshyosh]

As a customer that definitely makes a lot of sense from a pure cost POV, but as a business (depending on the SaaS) they technically are unlocking a ton more value for you as you scale. To not price accordingly feels like it would be bad overall for both businesses. CAC is only increasing as competition grows, the SaaS needs to devote revenue to both marketing and product, successful customers can help fund the SaaS so they can continue to build more value for your business, unlocking again more potential revenue for both sides.

If you pay a flat fee, it's possible that your business eventually outgrows the SaaS in some shape/form leading you to switch to a more mature product that charges more. I think this balance is why well aligned value based pricing keeps everyone aligned for the long term.

[abhinav22]

Yes it’s a very difficult balancing act, (I assume CAC means Customer Acquisition Cost) and there are a lot of overheads they need to cover. Figuring what the right price is to be competitive but also cover all marketing and other costs is not easy.

Of course as a customer I want the best deal for the lowest price, so I guess one should take the view of a customer with a grain of salt unless there are competitors who can beat you on price and adequate quality.