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How TimeCamp unlocked 50% more expansion revenue with SaaS pricing optimization?

by Kris Szyszkiewicz, Partner & Co-founder

Client

TimeCamp is a super intuitive, easy-to-use time-tracking tool that helps you make the best of your time. It integrates smoothly with a vast number of other tools, making it a go-to solution for anyone who needs to monitor how time is spent across projects. As consultants, we sell our time for money to the clients, so we understand the enormous value of effective time monitoring. It’s crucial for ensuring your projects are profitable. TimeCamp is used by both freelancers and large organizations, which makes it a textbook B2B SaaS pricing case. Understanding the customer base is essential for effective SaaS pricing optimization, as it allows businesses to tailor pricing strategies to the needs and value perceptions of different segments.

“The Valueships team helped us uncover pricing opportunities we didn’t know existed. Their structured approach gave us the confidence to make changes we’d been hesitant about for a long time. The impact on our expansion revenue was beyond what we expected.”

TimeCamp leadership team

Situation

TimeCamp approached Valueships with a request to check if there was a hidden opportunity in their pricing that they could exploit. The client’s team was eager to assess their current SaaS discounting policy with external experts.

They had a feeling that money was leaking somewhere in the pricing model, but they didn’t have the data or methodology to confirm it. In such cases, some companies default to cost based pricing—setting prices by adding a markup to their explicit costs—but this approach often misses opportunities for value capture in SaaS. That’s a common situation we see in B2B SaaS pricing - companies grow fast, offer discounts to close deals or retain customers, and over time those discounts accumulate into a significant revenue gap.

Goal

TimeCamp’s main objective was to identify the potential impact of optimizing current pricing. More specifically, they wanted to know: how much MRR are we leaving on the table, and what can we do about it?

The question behind it was simple but important - how to raise SaaS prices without losing customers, while also fixing the discount structure that was quietly eroding margins. Developing a robust SaaS pricing strategy is crucial to achieving these goals, ensuring that pricing models maximize value, remain competitive, and adapt to market changes.

Approach

As usual in the case of SaaS clients, we took off with our Internal Diagnostic. Our analyst requested all the data regarding matters like last month MRR, feature usage, churn, and growth dynamics. The diagnostic helped us discover that a large portion of the money was leaking in discounts. We also identified an opportunity to increase expansion revenue to improve Net Dollar Retention.

Next, we run a competitive scan. Our researchers gathered tons of data regarding all the companies that were pointed out by our client as competition. After diving into the data, we realized that TimeCamp was receiving higher NPS and feedback scores from its clients than most of the market. What's more, customers saw high value in TimeCamp, compared to the competition. 

After the competitive scan was done, we ran a pricing survey. Its main goal was to identify the best price points for TimeCamp plans, and uncover the most common use cases and characteristics of typical users. We also analyzed packaging and monetization strategy. The responses we collected were then aggregated and analyzed. We discovered that there are some areas where TimeCamp pricing could be improved both in terms of list price and feature preference. 

As the last step, we ran a scenario analysis to assess the impact that new pricing may have. We thought of the worst and the best scenarios and a few between those two. Then, we quantified all those scenarios and prepared a detailed estimation of the changes in MRR

At the end of the project we conducted pricing capability building for the extended TimeCamp team, to make sure the company is ready for implementation. We helped TimeCamp to better understand general pricing principles, helped the CSM and Sales team discover the impact of Value Selling and share our experiances around price increases.

1. Revenue engine diagnostics

As usual in the case of SaaS clients, we took off with our internal diagnostic. Our analyst requested all the data regarding matters like last month MRR, feature usage, churn, and growth dynamics. Analyzing annual recurring revenue (ARR) in this context helps quantify the economic value and revenue stability of the product, especially as reducing churn and improving retention directly contribute to increased ARR.

The diagnostic helped us discover that a large portion of the money was leaking in discounts. This is something we see often - SaaS discounting policies that start as tactical tools for sales and retention end up becoming structural revenue leaks. We also identified an opportunity to increase expansion revenue to improve Net Dollar Retention. In other words, the path to how to increase MRR was right there in the data - it just needed someone to connect the dots.

2. Competitive SaaS pricing strategy analysis

Next, we ran a competitive scan. Our researchers gathered tons of data regarding all the companies that were pointed out by our client as competition. By analyzing competitor pricing models and strategies, including benchmarking and understanding market dynamics, we were able to inform our assessment and identify opportunities for improvement. After diving into the data, we realized that TimeCamp was receiving higher NPS and feedback scores from its clients than most of the market. What’s more, customers saw high value in TimeCamp compared to the competition.

This was a clear signal that the product’s value wasn’t fully reflected in its pricing. Aligning pricing with market positioning is crucial for maximizing value capture and supporting business growth, ensuring that pricing strategies are consistent with the company’s objectives and target segments. When your customers rate you higher than alternatives and still pay less, there’s room for a well-executed SaaS price increase strategy.

3. Price sensitivity analysis, value based pricing, and packaging review

After the competitive scan was done, we ran a pricing survey. Its main goal was to identify the best price points for TimeCamp plans and uncover the most common use cases and characteristics of typical users. We also analyzed packaging and monetization strategy. As part of this, we evaluated different pricing models to determine which best fit customer needs and market conditions.

The price sensitivity analysis revealed that there were areas where TimeCamp pricing could be improved both in terms of list price and feature preference. Some features were undervalued in the current packaging, while others didn’t justify their placement in higher-tier plans. We also considered usage limits in the tiered pricing structure to accommodate different customer needs and growth stages.

This kind of insight is what makes value-based pricing strategy work - you’re not guessing, you’re adjusting based on what customers actually value and are willing to pay for. Understanding how customers pay for features or usage—whether through bundled plans or usage-based models—also informs the optimal pricing approach.

4. Scenario modeling for usage based pricing model

As the last analytical step, we ran a scenario analysis to assess the impact that new pricing may have. We thought of the worst and the best scenarios and a few between those two. Then, we quantified all those scenarios and prepared a detailed estimation of the changes in MRR. Scenario modeling also included projections for different revenue streams based on the proposed pricing changes.

This is a step we never skip. Giving the client a clear picture of potential outcomes - from conservative to optimistic - is essential for building the confidence needed to move forward with pricing changes. Scenario modeling also considered the potential impact of longer sales cycles during economic downturns on pricing outcomes.

5. Pricing capability building

At the end of the project, we conducted pricing capability building for the extended TimeCamp team, to make sure the company is ready for implementation. We helped TimeCamp better understand general pricing principles, helped the CSM and Sales team discover the impact of value selling, and shared our experiences around SaaS price increase strategy. Building these pricing capabilities also supports the retention of loyal customers by enabling effective pricing and relationship management over time.

This is something we believe in strongly. A pricing project shouldn’t end with a PDF. It should leave the team equipped to maintain and evolve the pricing on their own. Value based pricing focuses on aligning pricing with customer-perceived value, and this was a key part of the training.

Results

The results confirmed that a structured approach to SaaS pricing optimization delivers:

  • +50% increase in expansion revenue - the primary goal, achieved through a combination of discount policy fixes and pricing adjustments
  • Increased pricing capabilities of the executive team - TimeCamp’s leadership and sales team walked away with a much deeper understanding of value-based pricing and value selling

Optimizing pricing also led to an increase in average revenue per customer, directly contributing to overall profitability.

What made this project particularly effective was the combination of fixing what was broken (the discounting leaks) and building what was missing (proper price points based on actual customer data). That’s the difference between a one-time price hike and a sustainable SaaS pricing optimization - you address both sides of the equation. The new pricing approach also helped TimeCamp strengthen its market share in the competitive landscape.

The TimeCamp case is a strong example of how to raise SaaS prices without losing customers. The project also delivered measurable cost savings by reducing unnecessary discounting and improving operational efficiency. When you back your decisions with competitive data, price sensitivity analysis, and scenario modeling, the risk drops significantly and the upside becomes clear. The ability to implement higher price points for premium features contributed to revenue growth and supported the business case.

TimeCamp’s experience serves as a model for other SaaS businesses looking to optimize their pricing strategies for sustainable growth.

Frequently Asked Questions

How do you identify discount leakage in a SaaS business?

It starts with a thorough diagnostic of your internal data. We analyze MRR waterfall, discounting patterns, churn dynamics, and feature usage to understand where revenue is leaking. In TimeCamp's case, we discovered that a significant portion of money was being lost through accumulated discounts. This is extremely common in B2B SaaS pricing - discounts offered to close deals or prevent churn add up over time and quietly erode margins. Once you quantify the leakage, the path to increasing MRR becomes much clearer.

How do you run a price sensitivity analysis for SaaS?

We use structured pricing surveys designed specifically for B2B SaaS products. The survey identifies optimal price points, tests feature preferences across different user segments, and uncovers how sensitive customers are to price changes. For TimeCamp, the analysis revealed which features were undervalued in the current packaging and where list prices could be adjusted. This data-driven approach is what separates value-based pricing strategy from guesswork.

Can you increase expansion revenue without raising list prices?

Yes - and TimeCamp is proof. A large part of the 50% expansion revenue increase came from fixing the SaaS discounting policy rather than simply raising prices. When you seal the gap between your catalog price and what customers actually pay, the revenue impact is immediate. Combined with smarter packaging and better price points identified through research, you get sustainable growth without relying solely on list price hikes.

How long does a SaaS pricing optimization project take?

The TimeCamp engagement was completed in 7 weeks from kickoff to a fully developed pricing strategy. Typical SaaS pricing optimization projects at Valueships take between 4 and 10 weeks depending on scope. TimeCamp's project included revenue engine diagnostics, competitive analysis, a pricing survey, scenario modeling, and pricing capability building for the extended team - all within that timeframe.

What is pricing capability building and why does it matter?

Pricing capability building means training your internal team - sales, CSM, leadership - to understand and apply pricing principles after the consulting engagement ends. For TimeCamp, we ran workshops covering value-based pricing fundamentals, value selling techniques, and practical guidance on executing price increases. This ensures the company can maintain and evolve its pricing independently. A pricing project that ends with a document but no internal capability is only half done.

How does Valueships approach B2B SaaS pricing differently?

Valueships is a European pricing consultancy that specializes in mid-market B2B SaaS pricing. Our approach combines data-driven diagnostics with value-based methodology and hands-on implementation support. We don't just tell you what to change - we model the impact, build the scenarios, and equip your team to execute. Our track record includes results like +50% MRR growth, +50% expansion revenue increase, and +27% ARPU uplift - all with minimal churn impact and delivered within weeks, not months.

Quick summary

+50% increase in expansion revenue

7 weeks to deliver

2 Managers + Data Analyst + 2 researchers: Valueships involvement

Increased pricing capabilities of the executive team

Kris Szyszkiewicz
Partner & Co-founder

Certified expert in price, revenue and margin management in B2B companies and e-commerce. Member of the prestigious Professional Pricing Society. At Valueships, he is responsible for the implementation of consulting projects and taking care of the profitability of clients. Prior to joining Valueships, he worked at McKinsey & Company in the area of ​​pricing and strategy.

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Kris Szyszkiewicz
Partner & Co-founder

Certified expert in price, revenue and margin management in B2B companies and e-commerce. Member of the prestigious Professional Pricing Society. At Valueships, he is responsible for the implementation of consulting projects and taking care of the profitability of clients. Prior to joining Valueships, he worked at McKinsey & Company in the area of ​​pricing and strategy.

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