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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 our saas pricing book, Price to Scale, enterprise-level pricing isn’t defined by a rigid dollar threshold but by the need to offer deeper discounting and more tailored terms. Here are some key points:
• In our book (see page 83), we note that commercial deals typically see discounts of up to about 20–30%, while enterprise deals can see discounting as high as 70–80%. When you find that a deal naturally falls into the territory where deeper discounting is needed, it signals that the customer’s requirements (in volume, complexity, or support) might justify enterprise conditions.
• Rather than setting a fixed “minimum” deal size, we recommend segmenting customers by their overall value and needs. For many SaaS companies, enterprise-level pricing starts where the expected annual contract value (or deal size) and associated implementation complexity require that deeper discounting range (often 30% or more) and additional customized terms.
• It’s also useful to consider that enterprise deals tend to drive lower unit prices (for example, our book notes figures such as $0.60 per unit for larger customers versus $2.10 per unit for smaller ones). This volume discounting is one of the factors that help define when a deal should move into the enterprise category.
In summary, while there isn’t a one-size-fits-all minimum dollar amount, consider shifting to enterprise-level terms when your deal size and volume discount expectations start approaching that deeper discounting range—commonly seen in deals that are significantly larger than typical commercial or mid-market contracts. You'll often find this occurs in deals where the ACV is substantially above your smaller, more standard offerings.