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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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Custom pricing plays a critical role in enterprise SaaS sales, serving as a strategic approach to maximize deal value while addressing the unique needs of large organizations. Based on our extensive experience with enterprise clients, here's how custom pricing functions in the enterprise SaaS ecosystem:
Strategic Alignment with Go-to-Market Motion
Custom pricing in enterprise SaaS needs to align with your overall go-to-market strategy. As demonstrated in our case studies, companies that align their pricing model with their enterprise-focused sales motion see significant improvements:
- One $30-40M ARR eCommerce SaaS company increased deal sizes by 15-30% after aligning their pricing strategy to an enterprise-heavy sales motion
- A $10M ARR IT infrastructure management company successfully implemented enterprise pricing for their high-ASP solution sale after struggling with lump-sum subscriptions
Benefits of Custom Enterprise Pricing
- Higher Average Deal Sizes: Custom pricing enables capturing more value from large enterprise clients who have complex requirements and higher budgets
- Reduced Sales Friction: Properly structuring enterprise deals reduces customer objections during the sales process
- Feature Monetization: Custom pricing allows for monetizing strategic features that enterprise customers particularly value
- Competitive Differentiation: Tailored pricing structures help position your offering against competitors in complex enterprise evaluations
Implementation Considerations
Implementing effective custom pricing for enterprise sales requires attention to several operational factors:
- CPQ System Integration: Enterprise pricing often requires configuration of CPQ (Configure, Price, Quote) systems to support deal construction
- Sales Enablement: Providing pricing calculators and extensive sales training to ensure the team can effectively articulate value
- Engineering Connections: Feature flags, billing system integrations, and other technical components must align with pricing structures
- Sales Compensation: Adjustment of compensation plans to incentivize the right selling behaviors for enterprise custom deals
Best Practices
Our pricing methodology for enterprise SaaS includes:
- Rationalizing package structures to reduce complexity while maintaining flexibility (one client went from 12 to 5 core packages)
- Creating combination pricing metrics that scale with customer value (e.g., users + company revenue)
- Developing clear implementation plans for rolling out new pricing structures
- Regular performance analysis across tiers/packages to optimize pricing approaches
Custom pricing in enterprise SaaS sales isn't merely about discounting - it's about creating strategic, value-based pricing structures that align with how enterprise customers buy and use your products, ultimately driving higher ASPs and better customer retention.