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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 the information gathered, here's when SaaS companies should offer custom enterprise pricing:
When to Offer Custom Enterprise Pricing for SaaS Companies
SaaS companies should implement custom enterprise pricing when:
Targeting high Average Selling Price (ASP) solutions: When your go-to-market strategy focuses on enterprise sales with higher deal values, custom pricing aligns with the more complex and consultative sales process.
Complex customer requirements exist: Enterprise customers often have unique needs that don't fit neatly into standard pricing tiers, requiring customization for specific use cases, integration requirements, or compliance needs.
Selling to large organizations: When customers have varying scales of implementation, custom pricing allows you to capture value proportional to the size and complexity of deployment.
Combination pricing metrics are needed: As seen in our case studies, enterprise customers may benefit from pricing models that combine multiple factors (such as users and company revenue), which requires a more tailored approach.
Facing sales friction with fixed packages: If your sales team encounters consistent objections or friction during the sales process with standard pricing, it may indicate the need for more flexible enterprise pricing.
Moving upmarket: When expanding to serve larger customers, custom enterprise pricing enables you to appropriately monetize the additional value you provide to more sophisticated customers.
Strategic feature monetization: Custom pricing allows you to better monetize high-value strategic features that may be particularly valuable to enterprise customers.
A well-designed enterprise pricing approach should still maintain structure – for example, by using a combination of standardized components with customization options, or by implementing value-based pricing metrics specific to enterprise use cases. The key is balancing flexibility with consistency to avoid the pitfalls of completely ad-hoc pricing that can lead to revenue leakage and internal confusion.