At what point (for example, a certain number of users or large deal size) should we consider offering volume discounts, and should those discounts be published on our pricing page or only discussed in sales conversations?

Based on our saas pricing book, Price to Scale, here are some key points to consider regarding volume discounts:

  1. When to Offer Volume Discounts
     • Our research shows that customers naturally expect lower per‐unit costs when buying in larger quantities. For example, while smaller or commercial deals might be discounted by up to around 20–30%, larger (enterprise) deals often see discounting as high as 70–80%.
     • Rather than having a single user or deal-size threshold, it is more effective to segment your customers (e.g., Commercial, Mid-sized, Enterprise) and set discount ranges applicable to each group. In our book (see pages 83 and 115), we illustrate how analysis of unit prices and deal sizes can help establish these thresholds. Essentially, if your deal size (whether measured in user count, license volume, or overall contract value) reaches a level where the unit cost significantly drops (as seen in our Figure 27), that is a good signal to start offering a volume discount.

  2. Where to Publish Discounts
     • Volume discounts often serve as a strategic sales tool. While many SaaS companies mention that volume pricing is available, detailed discount structures are typically reserved for sales discussions rather than being fully published on your pricing page.
     • Publishing a clear base price on your pricing page while indicating that additional discounts may apply for higher volumes helps maintain transparency but preserves the flexibility needed in negotiation. This approach also encourages your sales team to engage potential customers in discussions about their specific needs and deal sizes, allowing them to tailor the discount appropriately based on the customer’s segment and purchasing volume.

Summary: In Price to Scale, the recommended approach is to structure volume discounts around customer segment thresholds rather than a one-size-fits-all metric. You should plan for lower per-unit pricing as deals get larger—using data (like unit pricing charts) to identify when the discount becomes warranted—and keep detailed discount structures as part of tailored sales conversations rather than fully disclosed on your pricing page. This ensures both clarity for prospects and flexibility for your sales process.