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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 experience detailed in Price to Scale, it's generally recommended to charge separate setup fees for enterprise implementations rather than bundling these costs into the subscription.
Key Points from the Book:
- When we began charging fees for implementation, onboarding, and training, our clients accepted it because it became an expected part of the process.
- Charging these fees creates a distinct revenue stream and helps separate the cost of getting customers up and running from the recurring subscription value.
- This approach prevents the "absorption" of high implementation costs into the base subscription, which can dilute your overall profitability and pricing strategy.
Practical Considerations:
- Enterprise customers typically expect to pay for one-time services that require significant customization and effort. By itemizing these costs, you’re transparent about the value each component brings.
- Separating setup fees from the subscription also allows you to adjust and scale pricing for implementations independently as your product and service offerings evolve.
- It helps your sales team justify the subscription pricing by distinguishing between ongoing platform value and the initial setup investment.
In summary, our saas pricing book Price to Scale advises charging separate implementation fees for enterprise customers. This strategy not only aligns with customer expectations but also fosters a clearer, more scalable pricing model overall.