Costco goods are a great deal for customers because they sell in bulk. SaaS companies using volume pricing adhere to the same philosophy, if a customer uses more of the product, they get a discount according to that usage.
When dealing with bigger customers, oftentimes discounts must be applied in order to make deals happen. One of the best ways to do this is through a volume discount.
Oftentimes volume pricing is reserved only for larger deals mainly because reading the price table is not the simplest thing in the world to do.
This is pretty self-explanatory, in order to get discounts a customer needs to spend more, meaning only those willing to invest a large amount of money into a product will reap the benefits of volume discounts.
SaaS companies should consider volume-based pricing if: