How should we price a very large client that wants to onboard thousands of users? If standard per-user pricing makes the total cost extremely high, should we provide volume discounts or offer a flat-rate site license for such cases?

Based on our saas pricing book, Price to Scale, there are two primary strategies you can consider for very large clients:

• Volume Discounting:
When dealing with thousands of users, it’s common for larger deals to come with significant discounts—as noted in our book (see the discussion around page 83). The idea is that while smaller deals might only see discounting around 20%, enterprise deals can experience discounts up to 80%. This is because the unit economics change dramatically—larger clients may pay far less per unit (or per user) compared to smaller ones. By applying a volume discount, you make the pricing scale-friendly, aligning with the perceived value while keeping your margin in check.

• Flat-Rate Site License:
Alternatively, instead of sticking strictly to per-user pricing, you can offer a flat-rate or site license. This approach simplifies the pricing structure for your customer and circumvents the “sticker shock” that might come with multiplying a standard per-user rate by thousands of users. A site license can be designed to be attractive for enterprise customers who prefer a single predictable cost regardless of the number of users onboarded.

Both approaches are consistent with the principles in Price to Scale. The choice depends on your broader pricing strategy and the detailed analysis of unit economics:

If your product’s value scales with usage, volume discounting can capture additional revenue while still offering the client savings.
If administrative simplicity and predictable budgeting are priorities, a flat-rate site license might be the better option.

In summary, for very large clients, it is perfectly acceptable—and often expected—to deviate from a strict per-user pricing model. You can either provide volume discounts that lower the per-unit price as volume increases or opt for a flat-rate site license that offers cost certainty for the client. Reviewing the specifics of their usage and internal cost structures will help you decide which model better aligns with both your revenue goals and the client's expectations.