.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.
Based on the insights from Price to Scale, the answer is nuanced but leans toward offering graduated discounts—with some important caveats:
• Offering graduated discounts on the basis of how many products a customer uses can be a powerful way to incentivize broader adoption and deepen engagement with your suite. In our pricing strategy book, we note that customers expecting volume discounts (for example, paying less per unit when buying more licenses, features, or products) is a perfectly acceptable practice in SaaS.
• However, it’s essential to segment your customer base carefully. Not all customers will value or require the same level of discounting. For instance, as highlighted in our book (see the discussion on customer segmentation and discount ranges), different customer groups (commercial, mid-sized, enterprise) might warrant different discount levels. Graduated discounts should reflect the value each segment derives from using multiple products.
• It’s important to structure these discounts carefully. Instead of offering a direct percentage reduction across the board, consider packaging the suite in a manner like good-better-best tiers. This approach allows you to map different sets of features and capabilities to various customer segments, ensuring that the discounting strategy doesn’t simply erode the perceived value of your products.
• Lastly, be transparent and strategic in how you present these pricing alternatives to your customers. The book suggests that pricing should be upfront with clearly defined alternatives—such as an upgrade option for the same price versus a discount with commitment strings—so customers understand the value proposition tied to more extensive usage of your suite.
In summary, graduated discounts can be beneficial when executed as part of a larger strategy that segments your customer base, aligns with volume discounting norms in SaaS, and preserves the perceived value of your offerings. This balanced approach—detailed in Price to Scale—will help you leverage discounts as a tool to drive increased adoption without diluting your overall pricing structure.