SaaS companies can enhance their competitive advantage by strategically packaging their products and services to meet diverse customer needs. Effective packaging not only improves customer perception but also drives sales by simplifying choices and highlighting value.

Usage-based pricing in SaaS often promises flexibility and customer-friendliness but can lead to unfavorable conditions for customers, such as being locked into contracts without the ability to adjust based on actual usage. Vendors may benefit from this model by enforcing high renewal rates and hiding unfavorable terms, ultimately compromising the customer experience. To navigate these pitfalls, customers should be proactive in negotiations and seek clear rollover terms and transparency.