7/10 Businesses I've Seen Sign Vague Pricing Terms

A couple of weeks ago, I jumped on a consultation call with a SaaS founder who had just landed his biggest client yet. He was buzzing.

But as we dug deeper, it became clear that not everything was rosy.

“I’m stuck,” he said. “The product's growing, but the pricing is locked.”  

It’s a scenario I’ve seen too often. Vague pricing terms are buried in contracts that seem harmless at first but turn into a roadblock down the line.

I’ll paint the picture for you:  

You’ve secured a big customer. You’re excited. The deal looks perfect. But somewhere in the rush to close, you didn’t clarify the payment terms.

Now, months later, as your SaaS platform evolves and offers more value, you’re stuck. No room to increase prices. No flexibility.

And it’s eating into your potential.

Price Flexibility Is Everything

When you’re in the SaaS world, potential is the name of the game.

I’ve been learning this firsthand as I get feedback from my consultation calls and prepare to release my Fundraising Guide for Indian Startups.

Every founder, every investor I talk to? They’re all after one thing - potential.

But when your contracts are vague, you’re not just losing revenue. You’re losing the ability to scale.

It’s easy to think, “This customer is huge, locking in a long-term price makes sense.” But here’s the catch:

- As your product evolves, it becomes more valuable.

- As your customer’s needs grow, you’re offering more features, more support, and more solutions.

But your hands are tied. That contract from six months ago? It’s now a noose around your growth.

Don’t Let Vague Terms Destroy Your Potential

Here’s the thing about contracts - they can either be your best asset or your worst enemy. Especially when it comes to pricing and payment terms.

Maybe you’ve agreed to a long-term price lock, thinking it was a good idea at the time.

But as your product improves, as the market shifts, you find yourself trapped, unable to adapt or increase pricing. And that’s a tough pill to swallow.

When buyers sit across from you during acquisition talks and undervalue your company because of restrictive pricing terms, you’ll wish you had negotiated better.

The Power of Clear, Flexible Pricing

A clear contract gives you leverage. It allows you to adapt, grow, and charge what your product is truly worth as the market changes.

The last thing you want is to be stuck with pricing that made sense 12 months ago but no longer reflects the value you deliver.

I’ve also learned something interesting over the past few weeks: A lot of people are just experimenting, trying their best.

And while that’s true, the key difference between those who grow and those who plateau is this: they don’t gloss over the details. They get the contract right.

My Way to Fix It: Be Specific, Be Clear

If you’re in the SaaS space, here’s what I’d recommend:

1) Clarity on Payment Terms  

Don’t leave anything up for interpretation. Clearly mention exactly when payments are due, how much, and under what circumstances pricing can change.

2) Build in Flexibility

Your product will grow. So should your pricing. Make sure your contract allows for price adjustments as your platform evolves.

Don't just cover your costs. Make sure that you have terms that allow your business to scale with your customers.

3) Lock in Value, Not Just Price

When you’re sitting across the table from a client, frame your pricing in terms of value delivered.

You’re not just selling a product - you’re selling growth, efficiency, and solutions. That value should be reflected in your contract.

The Lesson I’ve Learned

Look, I know what it feels like to get overwhelmed with a lot on your plate.

Just last week, I was putting in extra hours at night to finish everything. It’s easy to rush through contracts, excited to close the deal and move on to the next thing.

But here’s what I’ve learned: Don’t rush it. Don’t let vague terms rob you of future growth. Potential is everything in business. And vague pricing? That's a roadblock to reaching that potential.

What’s Next?

If everything had gone right, I would have already released my Fundraising Guide.

It’s packed with insights on how Indian startups can raise capital, navigate tricky investor deals, and build a legal foundation that supports their growth.

Because like with pricing terms, the devil is in the details. Get them right, and you’re setting yourself up for success.

You can get it here -> https://topmate.io/akhil_mtlegal

In the meantime, review your SaaS contracts. Look closely at your pricing terms, and make sure they’re not holding you back. Your future potential depends on it.

And in case you need my help with reviewing any of your agreements, reply "REVIEW" and I will help you out.