.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Our book Price to Scale generally leans toward percentage discounts for SaaS subscriptions rather than fixed dollar amounts. Here’s why:
• Percentage discounts align with the scalable nature of SaaS pricing. In our book, you’ll notice that discounting is often discussed in percentage ranges—for example, commercial deals might see discounts of 10–30%, mid-sized 20–50%, and enterprise 30–70%. These percentage ranges naturally adjust as customer usage and deal sizes change.
• Percentage discounts also better reflect the incremental value and usage-based nature of the service. As customers expand their subscriptions, a percentage-based discount ensures that the discount scales in proportion to their spend, aligning with both the customer’s cost expectations and your underlying cost structure.
In summary, while fixed dollar discounts might be easier for some customers to grasp, our SaaS pricing strategy book Price to Scale tends to favor percentage discounts because they offer more flexibility and better scalability in subscription pricing models.