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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on our pricing strategy book, Price to Scale, customers typically prefer a per-user model for company-wide deployments. Here’s why:
Simplicity and Familiarity:
Customers are accustomed to pricing by employee or user. Just as many organizations are used to subscribing to products like Microsoft Office 365, charging by the number of users is an intuitive metric that makes it easy for them to predict costs.Ease of Adoption:
Using a per-user metric aligns with the natural way purchasing groups think. They understand the full scope of their employee base, making budgeting and forecasting more straightforward.Predictability:
The per-user model provides predictability in expenses. It allows customers to scale usage directly with their workforce changes, which is less disruptive than switching to or managing an unfamiliar flat fee.
In summary, for company-wide deployments, our book Price to Scale shows that a per-user pricing model is often preferred by customers due to its simplicity, transparency, and alignment with existing purchasing models.