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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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SaaS companies strategically adjust their pricing models when targeting enterprise customers to increase deal sizes and align with upmarket go-to-market motions. Here's how they do it:
Aligning Pricing with Enterprise GTM Strategy
Successful upmarket moves require pricing strategies specifically designed for high-ASP (Average Selling Price) solution sales. This means:
- Restructuring packages for enterprise needs - Moving from numerous small packages to fewer, more comprehensive offerings that better suit enterprise requirements
- Creating combination pricing metrics - Implementing metrics that scale with enterprise value, such as combining user counts with company revenue
Package Rationalization
SaaS companies often simplify their packaging when moving upmarket:
- Reducing excessive package options (e.g., consolidating from 12 to 5 core packages or from 4 to 2)
- Remapping feature sets to better align with enterprise needs
- Focusing on value drivers that resonate with larger customers
Pricing Model Refinement
The shift upmarket typically involves moving away from:
- Lump sum subscriptions without specific metrics
- Simplistic per-user pricing that doesn't capture value at scale
And moving toward:
- Usage-based components that accommodate enterprise-scale deployments
- Platform fee structures with guardrails
- Value-based metrics tied to customer success metrics
Implementation Considerations
Successfully moving upmarket requires attention to:
- CPQ systems and sales compensation adjustments
- Product metering and billing system updates
- Sales team enablement with new pricing models
- Internal training and customer communication strategies
Results from Successful Upmarket Pricing Transitions
When executed properly, upmarket pricing transitions can deliver significant improvements:
- 15-30% increases in average deal sizes
- Improved sales team adoption and reduced friction
- Ability to monetize strategic features valued by enterprise customers
- Greater consistency in the sales process
By strategically restructuring pricing to match enterprise needs and value perception, SaaS companies can successfully penetrate higher-value market segments while maintaining pricing power.