Based on our saas pricing book, Price to Scale, the recommended approach is to balance the attractiveness of a huge client’s volume and logo prestige with the importance of maintaining anchored list prices. Here are the key takeaways:
• Directly discounting your list price isn’t your only option. Instead, if you consider lowering the price per unit, be sure to do so with clear strings attached (for example, longer-term commitments, upsell opportunities, or bundled add-ons). This not only justifies the discount but also protects your overall profitability.
• Segment your customer base. Our book emphasizes that different cohorts (from high-usage enterprise clients to those on lower-end packages) may warrant different pricing approaches. This means that while a large client might justify a more favorable unit price because of sheer volume and strategic value, you should maintain consistency for other segments and avoid undermining your established list price.
• Be transparent about variations. When you intentionally offer different packages or alternative options, make sure the rationale is clear. For instance, you might create a new suite of pricing tiers for big accounts that explicitly includes the value-added elements tied to the discount. This approach prevents the confusion that could arise from simply discounting your traditional tiers.
• Define “how low is too low.” Price to Scale stresses that discounts should be scenario-specific. Evaluate the discount in context: consider the cost structure, future upsell potential, and the impact on your average selling price (ASP). Too steep a discount risks setting a precedent that could affect renewals or undermining the value perception for both new and existing customers.
In summary, if a huge client presents a significant revenue opportunity, it’s wise to explore creative concessions—that is, discounts with value-added conditions—while preserving your list price expectations. Tailor your strategy by segmenting your customer base and ensuring transparency so that you protect both the unit economics and brand value of your product.