Average Deal Size
Median SaaS SMB deal is $600-$1,200/month. Add-on sales can expand 20-40% (OpenView 2024).
💡TL;DR
Deal size expands through package design and multi-threading. Offer a base plus two add-ons, then standardize an upsell pitch mid-deal. SMBs should avoid over-discounting the entry plan; leave room to expand later. Build use-case bundles and pair them with competitive-comparison slides to justify price.
Definition
Total revenue from closed-won deals divided by number of deals in a period. Segmenting by industry, buyer size, and package highlights where value positioning or pricing needs refinement.
🏢What This Means for SMB Teams
Discounting to win stretches payback. Keep initial discounts time-limited.
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📋Practical Example
A 12-rep cloud infrastructure reseller ($18M revenue) wanted to raise deal size without hurting close rates. Before: average deal $11.8k, attach rate for managed support 18%. They packaged a base plan plus two add-ons (support and security) and trained reps to introduce add-ons after technical validation. After 60 days, average deal size rose to $14.6k, attach rate hit 36%, and win rate held steady at 26%, delivering $420k extra quarterly gross profit.
🔧Implementation Steps
- 1
Bundle base + two add-ons; price add-ons to deliver 20-30% lift without deep discounts.
- 2
Script the upsell moment (post-technical validation) and add it to the call checklist.
- 3
Show ROI calculators that include add-ons and compare against competitor bundles.
- 4
Track attach rate and margin weekly by rep; coach the bottom quartile with call snippets.
- 5
Expire promotional discounts within 30 days to avoid long-term price erosion.
❓Frequently Asked Questions
Will higher prices reduce win rate?
Anchor on value and add risk reducers (trial, opt-out). Track win rate and margin together; if win rate drops more than 2 points, refine the bundle story before discounting.
How do we prevent discount creep?
Set approval thresholds (e.g., discounts >10% require manager sign-off) and time-box all promotions. Publish average selling price weekly to keep discipline.
⚡How Optifai Uses This
Optifai surfaces add-on timing during deals and generates copy to guide buyers toward higher tiers.
📚References
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Related Terms
CAC (Customer Acquisition Cost)
Total sales and marketing spend divided by new customers gained in a period. It includes media, tools, payroll, agencies, and overhead allocated to acquisition. Teams track CAC alongside payback period and LTV to know whether growth is profitable.
Revenue Per Rep
Total revenue (or ARR) generated divided by number of sales reps over a period. It captures productivity and reveals whether to hire, coach, or re-segment territories.
Win Rate
Closed-won deals divided by total closed deals (won + lost) in a period. Often segmented by segment, source, or competitor to find where messaging or qualification is weakest.
Pipeline Velocity
A composite metric combining deal size, win rate, cycle length, and pipeline per rep to show how fast revenue moves through the funnel. It highlights which lever—volume, value, speed, or quality—is limiting growth.