Price discrimination maximizes revenue by capturing the surplus of customers willing to pay more, while still serving price-sensitive segments. In SaaS, it is commonly implemented through tiered plans, geographic pricing, and student or startup discounts.

Example: A SaaS company charges enterprise customers $5,000/month, SMBs $500/month, and offers startups a special rate of $99/month for the same core product, effectively practicing price discrimination based on customer segment and ability to pay.