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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 insights from our pricing strategy book, Price to Scale, the best way to increase prices for enterprise customers with negotiated contracts is to plan for incremental, value-justified adjustments rather than abrupt hikes. Here are a few key recommendations:
• Use list price adjustments as the anchor: Our book explains that while enterprise deals often involve deep discounting (up to 80%), raising your list prices ensures that even after negotiation the discount structure aligns with current market value. Increasing the list price creates room for discounting while still capturing more value over time.
• Embed escalation clauses in contracts: For negotiated contracts with enterprises, it’s often more practical to include pre-approved, scheduled price increases or escalation clauses (for example, tied to inflation, cost indices, or added value). This way, the price-adjustment is contractually built into renewal discussions, removing surprises and easing customer concerns.
• Reinforce and communicate added value: When approaching renewals or contract re-negotiations, clearly articulate any new or enhanced features or services that justify a higher price. This strategy—highlighted in our book—helps customers see price increases as part of a value upgrade rather than as a standalone cost increase.
In summary, for enterprise customers with long-term negotiated contracts, profitability is best boosted by raising list prices and embedding controlled, pre-agreed price increase mechanisms in the contract. This approach keeps negotiations transparent, maintains trust, and aligns pricing with both market value and the value your service delivers.