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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 the principles outlined in our pricing strategy book, Price to Scale, the answer isn’t a simple one-size-fits-all decision. Instead, it depends largely on how you segment your customer base and how you want to position your product bundles.
Below are some key considerations from our book:
• Customer Segmentation:
Our book emphasizes that effective pricing requires a clear understanding of different customer groups. If the educational segment is distinct from your standard market, you might tailor their pricing differently. Educational institutions can be more price sensitive, but they also offer an opportunity to build long-term relationships and foster future market growth.
• Discounting as a Strategic Tool:
While our book details that commercial deals often see discounts up to 20% and enterprise deals even up to 80%, these discounts are part of a broader strategy to reflect differences in usage and value perception. If you choose to offer educational discounts, ensure they come with considerations (for example, bundle configurations that require longer commitment or limited feature sets) so that you’re rewarding price-sensitive customers without diluting the perceived value of your standard offerings.
• Product Bundling and Value Communication:
When applying discounts to bundles, one risk is that simply lowering the price without altering the bundle composition might cause customers to compare favorably priced offers with higher-priced ones. The book advises that when adjusting prices, you might also consider modifying the bundle to offer a distinct value proposition. This approach prevents direct comparisons and supports a differentiated market stance.
In summary, if education-based customers represent a meaningful and distinct segment for you, there can be a strategic case for offering discounted product bundles. However, such discounts should be structured carefully – for instance, with specific conditions or modified bundles – to ensure that you communicate the right value proposition to both educational and standard segments. Always align these discount strategies with the overall segmentation and long-term growth objectives discussed in Price to Scale.