Enterprise SaaS Discounting Strategy: Balancing List Price with Sales Velocity
Jason Lemkin explains why SaaS sales reps discount strategically to close deals faster and hit quotas, and why founders' frustration with leaving money on the table misses the macro-level dynamics. The article provides practical frameworks for controlling discounts through pricing segmentation, markup strategies, and procurement modeling rather than eliminating them entirely.
Metrics in this report
7-8out of 10
frequency
Likelihood enterprise buyers request maximum discount at quarter/month end
50000$
minimum
ACV defining true enterprise deals with procurement involvement
20%
recommended
Mark up list prices before quoting to absorb expected discounting
30%
recommended
Additional markup for deals expected to go through procurement approval
5000$
maximum
ACV at which transparent pricing and discount hold-the-line becomes feasible
10-20%
range
Expected discount range for enterprise customers to feel deal is fair