Dear SaaStr: Why Do So Many B2B Vendors Not Show Prices for Enterprise Plans?
Maybe they should — at least in the age of AI.
When AI is going to be part of more and more research, and more and more deals. Maybe it’s time.
Still, most B2B vendors use “Contact Me” for enterprise pricing still today.
Not displaying prices for enterprise plans in SaaS can be a strategic move for several reasons:
1. Flexibility in Pricing
Enterprise deals are often complex, with varying requirements for features, integrations, and support. By not listing a fixed price, you maintain the flexibility to tailor pricing based on the specific needs of each customer. This is especially important early on when you’re still experimenting and learning what works for different segments and industries.
2. Value-Based Selling
Enterprise customers are less price-sensitive and more focused on ROI. By engaging in a conversation instead of showing a price upfront, you can frame the value of your solution in terms of the specific outcomes it delivers for them. This allows you to justify higher pricing based on the value you’re providing.
3. Avoiding Sticker Shock
An honest truth. Enterprise pricing can be significantly higher than SMB or mid-market pricing. Displaying these numbers upfront might scare off potential leads before they understand the value of your product. A “Contact Me” approach lets you guide the conversation and build trust before discussing costs.
4. Customization and Negotiation
Enterprise deals often involve custom terms, such as volume discounts, multi-year contracts, or additional services. By not publishing prices, you leave room for negotiation and customization, which can be critical to closing large deals [6].
5. Competitive Positioning
Keeping enterprise pricing private prevents competitors from easily benchmarking against you. It also allows you to adjust pricing dynamically without the need to publicly update your pricing page every time you make a change [3].
That said, this approach isn’t without trade-offs.
- It can add friction for smaller prospects who might prefer transparency and a quicker buying process. In fact, many smaller prospects may just not even click on Contact Me.
- It may work less and less well in the Age of AI. AI-first products are more and more transparent in pricing.
- But for enterprise customers, the benefits of a tailored, consultative sales process often outweigh the downsides.
If you’re just starting out, I’d recommend experimenting with this approach while gathering data on what works best for your target segments. Pricing is a learning process, and you’ll refine it as you grow.
