Guide

7 SaaS Pricing Mistakes That Are Costing Your Business Money

Most teams overpay for software they barely use. Here are the pricing traps to avoid.

By SmartToolPicks Team·February 16, 2026
7 SaaS Pricing Mistakes That Are Costing Your Business Money

Mistake 1: Paying for Seats You Don't Use

The most common SaaS pricing mistake is paying for user seats that sit unused. Audit your tools quarterly -- most teams have 20-30% unused licenses across their software stack.

Tools like Notion, Slack, and Salesforce charge per seat. Even 5 unused seats at $20/month each adds up to $1,200/year wasted.

Mistake 2: Not Negotiating Annual Plans

Most SaaS companies offer 15-30% discounts for annual billing, but many teams stick with monthly plans. If you have been using a tool for 6+ months, switching to annual saves significant money.

Pro tip: contact sales directly for enterprise pricing even if you are a small team. Many companies will offer custom pricing for annual commitments.

Mistakes 3-7: Overlap, Features, and Timing

Redundant tools (using both Asana AND Monday), paying for premium features you never use, and not reviewing subscriptions regularly are the other big money drains.

Set a quarterly reminder to audit your SaaS stack. Cancel what you do not use, downgrade plans where possible, and consolidate overlapping tools.

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