Pricing feedback for invoicing SaaS

Hi all! I'm in the process of redesigning pricing for Sliptree (https://sliptree.com/pricing), which is a very simple, easy-to-use invoicing tool for small businesses in the EU.

We currently have a free tier (with a limit of 1000€/month worth of invoices) and an Unlimited plan for 19€/mo with a 14-day free trial.

Customer feedback and exit surveys have indicated that our free tier limit is hard to understand and the current bang-for-buck ratio is not optimal.

Many exit interviews indicate that a lower price point may convert some customers. On the other hand - to my surprise - many paying customers have said that they find the current price very good. I guess this indicates that the perceived value is different for different customers.

We have many different small businesses using our platform and their business sizes vary greatly. We have a lot of freelancers, some small shops, small teams/agencies, contractors. Their needs are quite different in terms of the features they're looking for. Some say they are missing some features, others are only creating invoices and are being very happy with the simplicity.

All in all, I've decided that refactoring pricing plans is now due. I have several goals:

• make pricing easier to understand and predict
• reduce technical complexity (keeping track of that 1000€/mo threshold is not that easy with all the different currencies and fluctuating exchange rates!)
• have more direct correlation between price and value received/perceived

I've been contemplating about several possible scenarios, but a common thing is that the 1000€/mo limit needs to go.

• Should I lose the free tier completely and only offer a free trial?
• Should I keep the free tier, but have a simpler limit - for example 10 invoices / year or manage up to 3 clients?
• Should I segment paying customers on features and introduce a low-cost plan for those with really simple use-cases and needs? For example something like 9€/mo for invoicing, and then a premium plan around 20€ or more with all the other features...

I'm not really a fan of introducing a lot of different pricing plans... I kind of like what Basecamp is doing in that they have a single pricing plan which is 99$/mo regardless of volume or number of users etc. However, perhaps having a low-cost plan and a premium plan would help convert more users and increase the absolute MRR...

I guess I'm just interested in public feedback to the ideas above. Particularly, what would you do with the free tier and how would you segment the different plans?

PS. Our current pricing includes VAT, which is not really optimal for a B2B product (and also creates a bunch of other technical challenges), so I'm plannign to change that as well.

Cheers,