What level of discount is appropriate for special groups like educational institutions or nonprofits if we decide to offer one? (For instance, is 50% off too much or standard for those cases?)

Based on the guidance in our book Price to Scale, discount ranges tend to depend on how you segment your customer base and the price sensitivity of each group. For example, the book outlines rough ranges of 10-30% for typical commercial deals, 20-50% for mid-sized customers, and 30-70% for enterprise deals. Although educational institutions and nonprofits aren’t explicitly singled out in these ranges, you can follow a similar method:

• If you view these special groups as part of a “mid-sized” segment that is highly price sensitive, a discount in the vicinity of 50% might be considered reasonable.
• On the other hand, if you decide that these groups should receive even more aggressive pricing to account for their budget restrictions, you could lean toward the higher end of an enterprise type discount—but only if your unit economics can sustain it.

The key is to align the discount with both the value you deliver and the specific price elasticity of these groups. Also, remember that the book recommends creating a structured discounting matrix, where decision rights are progressively assigned across your sales teams. This can help make sure that any special discount application (such as for education or nonprofits) is consistent with your overall strategy and subject to the appropriate level of approval.

In summary, a 50% discount might be standard and acceptable for those cases—if it reflects the segment's price sensitivity and fits within your overarching pricing framework. Always ensure that your discount policy is clearly documented and consistently applied, keeping in mind the strategic balance between revenue optimization and volume acquisition, as discussed in Price to Scale.