Should we set a minimum annual fee for enterprise customers, regardless of usage or seat count, to ensure a baseline revenue (for instance, even if they have few users they pay at least $X per year for enterprise-level service)?

Based on insights from our pricing strategy book, Price to Scale, a minimum annual fee for enterprise customers can be a sound approach—but it must be implemented thoughtfully to align with customer expectations and buying habits.

Here are some key points drawn from the book:

• Customers Are Trained on Familiar Metrics:
The book notes that many enterprise buyers are accustomed to straightforward pricing metrics, such as per-employee or per-seat pricing (see page 235). If you deviate too much from what they’re used to, you risk creating friction. A minimum fee should be positioned as part of an all-inclusive, easily digestible package that still feels familiar.

• Ensuring Baseline Revenue:
Implementing a minimum fee can help guarantee a baseline revenue even when usage or seat count is low. This protects your revenue structure against cases where enterprise customers might otherwise pay very low amounts relative to the costs of providing high-touch support and complex implementations.

• Balancing Value and Perception:
The key is to ensure that the minimum fee feels like a natural part of the overall value proposition. If customers see that enterprise-level service includes benefits such as dedicated support, custom features, or enhanced security, then a minimum fee can be justified. In other words, customers should perceive the minimum fee as ensuring they receive comprehensive, enterprise-grade value rather than as an arbitrary charge.

• Avoiding Disruption:
The book cautions against introducing radically different pricing metrics that may disrupt the customers’ buying process. Make sure that the minimum fee is clearly communicated and integrated into a pricing model that still emphasizes transparency and predictability.

In summary, setting a minimum annual fee for enterprise customers can serve the dual purpose of securing a baseline revenue and aligning with the customers’ accustomed pricing metrics. Just ensure the fee is well-justified by the added value of enterprise services and communicated in a way that feels consistent with familiar models. This approach, as recommended in Price to Scale, can help balance revenue assurance with customer adoption.