An expert's guide to enterprise pricing for SaaS companies

Looking to venture into SaaS enterprise pricing but unsure about how to go about it? 

Our guide will explain enterprise pricing in the SaaS industry and how you can implement it successfully. Here are some of the concepts we’ll explore:

• A definition of enterprise pricing
• The difference between enterprise and SMB pricing 
• Benefits and challenges of enterprise pricing in the SaaS field
• A rundown of the main SaaS enterprise pricing models
• Things to consider when setting enterprise prices
• Best practices and common hurdles in enterprise pricing
• FAQs about enterprise pricing for software companies
• The role of platforms like Orb when building an enterprise-level billing engine

Let’s begin.

What is enterprise pricing?

Enterprise pricing is a strategic approach to software pricing models that caters to large organizations with complex needs. Unlike standard pricing models designed for small businesses, enterprise SaaS pricing prioritizes flexibility, scalability, and long-term value.

Instead of a fixed, one-size-fits-all cost, enterprise pricing structures are customized to reflect the unique requirements of each client.

So, what sets it apart from other pricing models?

Enterprise pricing often involves a blend of the following:

• Customization: Enterprise clients require tailored solutions that extend beyond off-the-shelf software. This could involve specialized integrations, advanced security features, or unique analytics capabilities.
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• Volume discounts: Enterprise clients often purchase multiple licenses or high-volume subscriptions. Many enterprise SaaS pricing models offer bulk discounts, making large-scale adoption more cost-effective.
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• Premium support: Since enterprises rely heavily on software performance, they often expect dedicated customer service, such as 24/7 support, priority issue resolution, and specialized onboarding. In fact, better onboarding is a key element in SaaS customer success strategy.
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• Scalability: Large organizations deal with high data volumes and fluctuating user activity. Enterprise pricing accommodates this by confirming the software can scale with ease as business demands grow.

Enterprise vs. SMB pricing

While small and medium-sized businesses (SMBs) also seek customization, their pricing needs differ significantly from enterprises. Here’s a key distinction:

• SMBs: Typically opt for standardized packages with minor customizations. Their pricing tends to be predictable and budget-friendly, with limited scalability requirements.
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• Enterprises: Require highly adaptable solutions, often negotiated on a case-by-case basis. Their pricing reflects long-term commitments, larger-scale deployments, and premium service expectations.

Common SaaS pricing models

Choosing the right software pricing model is a critical step for SaaS companies looking to attract customers while keeping profitability high. Below, we explore the most widely used pricing strategies, how they work, and when they’re most effective.

Subscription-based pricing

Subscription-based pricing is the foundation of many SaaS businesses. Customers pay a recurring fee — either monthly, quarterly, or annually — to access the software, updates, and ongoing support.

This subscription billing model provides predictable revenue, making it easier to forecast growth. It also builds long-term customer relationships since clients stay subscribed as long as they find value in the product. 

The thing is that customer retention is crucial and high churn rates can quickly offset new sign-ups. Plus, companies must continuously demonstrate value to justify recurring payments so it’s not necessarily the best model for SaaS companies.

Tiered pricing

Tiered pricing offers different levels of service at various price points, making it one of the most flexible software pricing models. Businesses can attract a range of customers, from startups to large enterprises, by offering multiple tiers.

A typical tiered structure includes:

• Basic: Entry-level features at a lower price, targeting individuals or small teams.
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• Professional: More robust functionality designed for growing businesses.
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• Enterprise: Advanced capabilities, scalability, and premium support for larger organizations.

Tiered pricing allows SaaS providers to upsell customers as their needs grow. However, poorly structured tiers can create confusion, and offering too many options can lead to decision fatigue.

Per-user pricing

Per-user pricing charges businesses based on the number of people using the software. This model is common in collaboration and team-based tools where pricing scales with the size of the organization.

For companies with expanding teams, per-user pricing can make budgeting straightforward. The downside is it may discourage large-scale adoption if costs become too high. 

Another consideration is that this model doesn’t always reflect actual software usage — some users may be highly active, while others rarely log in so the risk of not taking full advantage of each paid seat is higher. 

Usage-based pricing

Also known as pay-as-you-go or metered pricing, this model charges customers based on their actual usage. Metrics could include the number of API requests, storage used, or transactions processed. This is a rather common model for AI companies, where pricing is often counted on a per-consumed-token basis. 

One of the biggest advantages of usage-based pricing is its flexibility. Customers only pay for what they use, which makes it attractive to businesses with fluctuating demands. 

On the other hand, this pricing model can make revenue unpredictable for SaaS companies, and customers may hesitate to commit if they’re unsure of their future usage.

Freemium model

The freemium model offers a basic version of the software for free, with the option to upgrade to a premium version for more features. This approach is widely used by SaaS companies looking to drive user adoption — especially if they reach the “aha moment” during their trial.

That’s why freemium pricing works well when the free version provides enough value to get users hooked while leaving room for paid upgrades. 

The not-so-good part of the freemium approach is that conversion rates from free to paid users can be low, and maintaining a large free-user base can become costly if infrastructure demands increase.

Value-based pricing

Value-based pricing sets prices based on the customer’s perceived value of the software rather than fixed costs. This model requires a deep understanding of customer needs and the impact the software has on their business.

By aligning pricing with outcomes — such as cost savings, revenue growth, or increased efficiency — SaaS companies can justify premium pricing. However, implementing value-based pricing requires significant market research and continuous evaluation to stay relevant.

Custom/enterprise pricing

As stated in the previous section, enterprise SaaS pricing is often customized based on the client’s specific needs. Instead of a fixed plan, pricing is negotiated and can include custom features, service-level agreements, dedicated account management, and volume discounts.

Custom pricing is ideal for businesses with unique requirements, as it provides tailored solutions and — in some cases — can be negotiated. 

However, this approach requires a dedicated sales process and, of course, longer negotiation cycles, which can slow down deal closures compared to self-service pricing models.

Benefits and challenges of SaaS enterprise pricing

Enterprise pricing offers notable advantages for SaaS companies, from higher revenue potential to stronger customer relationships. Yet, it also comes with challenges, such as pricing complexity and competitive pressures. Let’s explore both sides of enterprise SaaS pricing.

Benefits of enterprise pricing

1. Higher revenue potential

One of the most compelling reasons to implement enterprise pricing is the opportunity to increase contract value. Large organizations typically have bigger budgets than SMBs, which allows SaaS companies to charge premium prices for advanced features, dedicated support, and scalable solutions. 

So, by aligning pricing with enterprise needs, companies can secure larger, long-term contracts that contribute to predictable revenue growth.

2. Customization and adaptability

Enterprise SaaS pricing allows businesses to create tailored solutions that address the unique challenges of large organizations. 

From specialized integrations to custom workflows, this level of flexibility helps make sure that enterprise clients get exactly what they need. A well-structured enterprise pricing model positions the SaaS provider as a strategic partner rather than just another software vendor.

3. Stronger Client Relationships

Enterprise pricing is about building long-term partnerships with high-value clients. By offering personalized support, ongoing consultation, and custom solutions, SaaS providers can foster deeper connections with enterprise customers. This strong relationship translates into:

• Increased loyalty: Enterprises are less likely to switch providers when they receive consistent value and support.
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• Longer contracts: Businesses investing in customized solutions are more inclined to commit to multi-year agreements.
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• Brand advocacy: Satisfied enterprise customers can become strong advocates, referring other businesses to the SaaS provider.

Challenges of enterprise pricing

1. Pricing complexity

Enterprise pricing involves lots of variables, from custom feature sets to volume-based discounts and service-level agreements. 

This complexity can create confusion for potential clients and slow down the sales process. To avoid friction, SaaS companies should aim for transparency, clearly communicating what each pricing tier or customized package includes while avoiding hidden fees or vague terms.

2. Competitive pressure

The SaaS market is highly competitive, with numerous providers vying for enterprise contracts. This game of push and pull often leads to pricing wars where companies undercut each other to win deals, sometimes at the expense of profitability. 

Rather than competing solely on price, SaaS businesses should differentiate themselves through unique features, superior customer service, and a proven track record of delivering measurable results. 

Remember: A well-structured enterprise SaaS pricing model should reflect the value provided rather than engaging in a race to the bottom.

3. Aligning sales and pricing strategies

A disconnect between the sales team and the pricing strategy can create problems in the enterprise sales process. Sales reps must fully understand the pricing model to avoid overpromising discounts, features, or service levels that aren’t part of the established pricing structure. 

Clear internal pricing guidelines and sales training can prevent misalignment and help guarantee that pricing negotiations stay within a sustainable range.

4. Handling discount requests

Enterprise clients often request discounts as part of contract negotiations. While flexibility is important, SaaS companies must be careful not to erode their profit margins. 

Rather than reducing prices outright, businesses can offer added incentives, such as extended support, additional features, or flexible payment terms. Such an approach maintains perceived value while still accommodating the client's needs.

Factors to consider when setting enterprise prices

Setting the right SaaS enterprise pricing isn't a guessing game. It's a strategic balancing act that requires careful consideration of several key factors:

Market position and competition

Before you even think about numbers, take a good look around at: 

• Who are your competitors? 
• What are they charging? 
• Are they offering similar features and value? 

Understanding your competitors' pricing strategies can help you better position your offering. 

Equally important is your unique selling proposition (USP). Do you have a standout feature that justifies a premium price? Highlighting your unique value can help you command higher prices. This helps set yourself apart from competitors too.

Finally, consider the overall market sentiment. Is it a buyer's or a seller's market? The market conditions can influence your pricing power. This will have an impact on the willingness of customers to pay a premium.

Customer needs and value perception

Enterprise clients aren't just buying a product; they're buying a solution. To set the right price, you need to understand their pain points and the value your product brings. How much is that relief or value worth to them?

• What outcomes are they hoping to achieve?
• Can you quantify the value you bring in terms of revenue, cost savings, or efficiency?

Cost structure and profit margin

Your cost structure sets the floor for your pricing. You need to cover these costs and then some to stay profitable. But what's your desired profit margin? How much do you need to make to keep the lights on and invest in future growth? 

You need to strike the right balance. This means you’ll juggle covering costs and hitting your profit goals for a sustainable pricing strategy.

Pricing flexibility

Enterprise deals aren’t set in stone. In fact, a degree of flexibility can go a long way:

• Negotiation is key: Have some wiggle room in your pricing based on the size of the deal. This could involve offering volume discounts, feature bundles, or phased implementation plans.
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• Know your limits: Flexibility is important, but don't compromise your profitability. Know your walk-away point, and don't be afraid to say no to a deal that doesn’t make financial sense.

Contract length and terms

The devil is in the details, especially when it comes to enterprise contracts. Consider the following carefully:

• Contract length: Are you looking for annual or multi-year commitments? Longer contracts can provide more predictable revenue. This may require offering incentives to secure the deal.
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• Payment terms: Are you open to monthly, quarterly, or annual payments? Consider your cash flow needs and the client's preferences.
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• Cancellation and downgrade terms: What happens if the client wants to cancel or downgrade? Put clear terms in place to protect your interests and avoid surprises down the line.

Best practices for enterprise pricing

Here are some proven tactics to help you navigate this terrain and set prices that resonate with your high-value clients:

Dig deep with market research

Before you set any prices, immerse yourself in the market. Understand your competitors' offerings, pricing structures, and target segments. Look for gaps in the market where you can differentiate yourself and command a premium.

Focus on value, not just cost

Don't just talk numbers with your clients; talk value. Discuss their pain points, desired outcomes, and how your solution can help their business. When clients see the tangible benefits your product brings, they'll be more willing to invest in it.

Stay nimble, review, and adjust

The market isn't static, and neither should your prices be. Regularly review your pricing model. Take into account market shifts, competitor moves, and customer feedback. Don't be afraid to make adjustments as needed.

Make the most of what your data tells you

Leverage the power of data and analytics. Use it to gain insights into customer behavior, usage patterns, and price sensitivity. These insights can help you fine-tune your pricing strategy and find opportunities for growth.

Invest in your sales and support teams

Your sales and support teams are on the front lines, interacting with clients daily. Equip them with the knowledge and tools to articulate the value of your product. This way, they’ll negotiate deals more effectively. A strong sales and support team can make all the difference in closing high-value enterprise deals.

FAQs

How does enterprise pricing differ from SMB pricing?

Enterprise pricing is more flexible and customizable than SMB pricing, often involving tailored contracts, volume discounts, and premium support. SMB pricing typically follows predefined plans with limited customization options. Enterprises require scalable solutions, while SMBs prioritize affordability and simplicity.

How do volume discounts work in enterprise pricing?

Volume discounts lower the cost per unit as purchase quantities increase, incentivizing larger commitments from enterprise clients. This approach benefits both the SaaS provider and the customer by encouraging long-term partnerships and higher contract values. Discounts may be structured in tiers, percentage reductions, or custom agreements.

How can data analytics optimize my enterprise pricing strategy?

Data analytics helps refine pricing by identifying usage patterns, customer segments, and revenue opportunities. By analyzing historical data, businesses can optimize pricing tiers, forecast demand, and adjust strategies based on customer behavior. This leads to more competitive pricing and improved profitability.

How do enterprise pricing models accommodate scalability needs?

Enterprise pricing models support scalability by offering flexible plans that adjust based on usage, seats, or feature requirements. Many include custom contracts, volume discounts, and usage-based pricing to align with business growth. This approach ensures enterprises only pay for what they need while maintaining cost efficiency.

How does a billing solution like Orb simplify enterprise pricing management?

Orb automates billing, guarantees pricing accuracy, and enables flexible pricing experimentation without engineering bottlenecks. It ingests and processes all usage data in real time, preventing revenue leakage and billing errors. 

With frictionless invoicing and financial reporting, Orb helps SaaS businesses scale efficiently while maintaining pricing integrity.

Unlock your SaaS growth potential with Orb

Understanding enterprise pricing models is just the beginning — putting them into action is what makes the real difference. 

That’s where Orb comes in.

Orb is the done-for-you billing platform that empowers SaaS companies to take control of their enterprise SaaS pricing with a flexible, accurate, and scalable billing system. 

It’s different from traditional billing platforms, which often force businesses into rigid structures that limit growth, introduce errors, and make pricing experimentation slow and costly. 

Orb removes these constraints by unlocking usage data, enabling real-time pricing adjustments, and providing billing bullseye accuracy. Here’s how Orb transforms enterprise pricing:

• Adapt quickly with pricing flexibility: Pricing shouldn’t be static. With Orb RevGraph, businesses can test, refine, and roll out pricing changes without relying on engineering resources. Use historical data to simulate new models and deploy adjustments confidently.
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• Provide accuracy in billing: Orb ingests and processes all raw usage data, eliminating discrepancies and confirming invoices are precise, fully auditable, and free from revenue-draining errors. Finance teams can rely on Orb’s transparent revenue reporting for effortless audits and compliance.
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• Scale without limits: Whether you're expanding pricing models or handling complex contracts, Orb’s API-first architecture integrates into your financial stack. High-volume data ingestion, automated invoicing, and flexible pricing structures allow you to scale operations with ease.
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• A true partner in pricing strategy: Moving to usage-based pricing or optimizing existing pricing models can be daunting. Orb acts as a trusted guide, offering industry expertise, benchmarking insights, and ongoing support to help SaaS companies maximize their monetization strategies.

Ready to use Orb to unlock a smarter, more dynamic approach to your company’s monetization? Check out our flexible pricing options and discover how Orb can help you turn pricing into a competitive advantage.