For years, SaaS pricing had a relatively simple formula.

More users meant more seats. More seats meant more revenue.

That model worked because, in many software businesses, the number of people using the product reasonably reflected the value a customer received.

But that relationship is changing.

Automation can allow one employee to accomplish work that previously required several people. AI can complete tasks without adding another user. Software can create more value for a customer without necessarily creating more seats.

And as founders build their 2027 plans, that raises an important question:

If customers are using your product differently, should they still be paying for it the same way?

The Subscription Model Is Starting to Evolve

The shift is already showing up in the data.

SVB’s 2026 State of Enterprise Software report found that 37% of surveyed VC-backed enterprise software companies currently use subscription-only pricing. But only 26% expect to remain subscription-only as companies explore hybrid, usage-based, and other pricing models.

Buyer expectations are changing too.

According to G2’s 2026 Buyer Behavior Report, 49% of buyers said a current vendor had already offered them variable pricing based on consumption, outcomes, or another metric. Another 42% had been told pricing changes were coming.

G2 also found that preference for outcome-based pricing more than doubled in a year, increasing from 11% to 23%.

This doesn’t mean subscription pricing is disappearing.

It does mean founders should reconsider whether the metric they’re charging for still reflects the value they’re creating.

1. The Seat Isn’t Always the Value Anymore

Imagine a software platform that saves a company hundreds of employee hours each month.

Historically, that company might have needed 20 employees using the software.

With automation, perhaps five employees can now accomplish the same amount of work.

The customer may be getting more value from the product while needing fewer seats.

That’s where traditional per-seat pricing can create an unusual problem.

Your product becomes more effective, but your ability to monetize that effectiveness decreases.

This is especially important as AI becomes embedded into more software products.

ICONIQ’s 2026 State of AI research found that 37% of surveyed companies plan to change their AI pricing model within the next 12 months, with customer demand, competition, and margin considerations influencing those decisions. ICONIQ’s 2026 State of AI research

For founders, the question becomes less about how many people log in and more about what customers actually accomplish when they do.

2. Usage-Based Pricing Isn’t Automatically Better

The answer isn’t simply to replace seats with usage.

Usage-based pricing can work extremely well when increased usage closely correlates with increased customer value.

But founders should be careful not to confuse the cost of delivering the product with the value delivered to the customer.

Tokens are a good example.

An AI company may incur costs based on tokens consumed. That doesn’t necessarily mean customers want to buy tokens.

Customers generally care about what those tokens accomplish.

The better question is:

What increases when our customer gets more value from us?

It could be transactions.

Data processed.

Workflows completed.

Revenue generated.

Locations managed.

Customers served.

Time saved.

Or it may still be users.

The goal isn’t to follow the newest pricing trend. It’s to identify a value metric that makes sense for your particular business.

3. Hybrid Pricing May Become the Middle Ground

There’s another reason founders shouldn’t rush entirely toward consumption pricing: predictability still matters.

Customers want to understand what they’re likely to spend.

Founders need to understand what they’re likely to earn.

Investors and capital partners want to understand the predictability of the revenue model.

That’s why hybrid models can be interesting.

A company might charge a predictable platform fee and then add pricing based on usage, transactions, credits, locations, or another value metric.

The base creates predictability.

The variable component allows revenue to grow as the customer receives more value.

For some SaaS companies, that may create better alignment than either pure subscription or pure usage pricing.

4. Pricing Changes More Than Your Price

Pricing isn’t simply a sales decision.

It can influence nearly every major metric in the business.

Changing the pricing model can affect ARR predictability, expansion revenue, gross margins, customer acquisition economics, sales compensation, forecasting, cash flow, and ultimately how much capital the company needs to reach its next stage.

That’s why pricing strategy belongs in the same conversation as growth strategy.

A company can have strong demand and still leave significant value uncaptured if its pricing model doesn’t align with how customers actually receive value.

This becomes particularly important as founders evaluate the quality of their recurring revenue, not simply the size of the ARR number.

5. Use Q4 to Find Out What Customers Actually Value

Founders don’t necessarily need to redesign their pricing model before January.

But Q4 is a good time to question it.

Look at your existing customer base.

Which customers receive the most value from your product?

Which customers expand?

Which customers are the most profitable?

What behavior typically happens before an expansion?

Does usage increase before revenue increases?

Are your largest customers actually your most valuable customers?

Are highly successful customers paying significantly less than the value they’re receiving?

And perhaps most importantly:

If you were launching this company today, knowing how customers use your product now, would you price it the same way?

That question can uncover a lot.

The Founder Takeaway

The seat isn’t dead.

Subscriptions aren’t disappearing.

And usage-based pricing isn’t automatically the future.

But the way customers receive value from software is changing quickly enough that founders shouldn’t assume yesterday’s pricing model belongs in tomorrow’s growth strategy.

Before you ask whether your prices should go up, ask something more fundamental:

Are we charging for the right thing?

If your product creates more value as customers automate more work, complete more transactions, generate more revenue, or accomplish more with fewer people, your pricing model should at least be part of your 2027 planning conversation.

Because the strongest pricing model isn’t necessarily the one that charges the most.

It’s the one that grows when customer value grows.