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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 guidance in our book Price to Scale, the answer is yes—but with an important caveat: any additional storage or usage offered in bulk should be priced and bundled in a way that aligns with the purchasing metrics your enterprise customers are already accustomed to.
Here’s a breakdown of how to approach this:
• Consistency with Familiar Metrics:
Our book explains that many enterprise customers are trained to evaluate and purchase services based on a straightforward metric—like the number of employees or users, similar to how they buy Microsoft Office 365 subscriptions. This simplicity in understanding pricing is key. If you introduce additional storage or usage as a bulk add-on, it’s important that the metric doesn’t create confusion. The add-on should feel like a natural extension of the existing pricing model rather than a disruptive new element.
• Integrated and Simple Pricing Structures:
The book emphasizes that offering add-on options can be successful when they remain simple and consistent with how the market is trained to purchase. This helps ensure that enterprise buyers, who often need quick transactions and clarity in pricing, can easily digest the additional costs involved.
• Flexibility for Enterprise Needs:
As discussed in our book, enterprise customers typically require more flexibility. Providing options like bulk purchasing of additional storage or usage can enhance your overall offering by meeting these more in-depth requirements, such as custom discounting or licensing arrangements (like an ELA-type offering).
To summarize, while you can offer enterprise customers the option to purchase additional storage or usage in bulk, make sure that:
- The add-on is priced using a metric that customers understand.
- It integrates smoothly with your main pricing strategy.
- It addresses the flexibility that large enterprise deals often require.
This approach not only respects the conventional buying patterns of enterprises (as highlighted in Price to Scale) but also supports a streamlined, effective pricing model.