Pricing strategy · B2B sales

How do you best to scale your pricing for a customer who wants to rollout big?

John Duffield

August 22nd, 2014

We are a B2B mobile SaaS product. Potential customer wants pricing for rolling out to a large amount of their facilities. Typically our pricing is a monthly fee and one-time setup fee. We are yet to do a group/corporate deal. They have 800 sites in USA/Mexico. How should we approach a scaled pricing strategy which is attractive to them and includes appropriate discount, yet still attractive for us?
- after X amount of sites, price drops by 10%? 
- after XX amount of sites, price drops by 30%? 
- or setup fee reduced when installing at scale etc?

Any tips or thoughts on a strategic way to approach this is much appreciated.

Vijay MD Founder Chefalytics, Co-owner Bite Catering Couture, Independent consultant (ex-McKinsey)

August 22nd, 2014

Depends on the product, but with large corporate installations, customization, setup, on boarding, etc is generally something they need a lot of help with.  Rather than discount the licenses, you may want to out together a fully burdened program and lay that out against their needs for cost reduction vs speed to getting the thing running with related ROI.  Also, are you setting them up to be a reference customer?

Joanan Hernandez CEO & Founder at Mollejuo

August 25th, 2014

Hey John,

Chose the one where you can lower your price and still make money :-)

Cheers!

Cv Prakash Founder & CEO Gradatim

August 26th, 2014

A Volume based slab would be one way of looking at it. Try to offer a reduced price, slab wise, for example: X amount of sites, base price; after X amount of sites, price drops by 10%, and after XX amount of sites, price drops by 30% (as you have described).
It is better not to provide discount on setup cost as generally there is always your cost involved in any setup, and try to offer the 30% discounts once the slabs are crossed.