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Estd 4.22.2023
Based on the insights in our saas pricing book Price to Scale, the answer is that it depends on how your pricing model aligns with both your cost structure and your customers’ value expectations. Here are some key considerations:
• Value Alignment: Enterprise customers typically expect and value heightened security, performance, and support. Offering dedicated infrastructure or stringent Service Level Agreements (SLAs) can help meet those expectations. However, the pricing must reflect the additional value as well as the higher cost risk involved.
• Cost and Risk Management: One of the principles discussed in Price to Scale is aligning pricing with the underlying cost structure. If offering dedicated infrastructure or enhanced SLAs shifts your cost basis—for example, by requiring more granular infrastructure allocation or additional support resources—you need to ensure that the premium charged compensates for these added costs and potential risk exposures.
• Market Adoption and Segmentation: Some enterprise buyers are accustomed to a bundled solution that includes dedicated resources and guarantees through SLAs. By incorporating these features into higher pricing tiers, you can differentiate your offering without making the consumption-based model of pricing confusing for all customers. This segmentation allows you to tailor your service levels, so that smaller customers get a measured service while enterprises receive the comprehensive support they need.
In summary, our book encourages you to weigh the benefits of offering dedicated infrastructure or enhanced SLAs against the complexity and cost implications. If these features deliver clear value and match the customer’s expectations—and if their cost impact is properly priced—then including them as part of higher pricing tiers is a sound strategy. Always ensure that whatever tiering or bundling you choose directly ties back to both the customer’s success and your cost structure.