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Added list price threshold to discounts table #8903

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Jul 8, 2024
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Added list price threshold to discounts table #8903

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20 changes: 13 additions & 7 deletions contents/handbook/growth/sales/contracts.md
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Expand Up @@ -19,13 +19,19 @@ In addition, customers requiring our Enterprise plan are required to sign up for

Our standard monthly [pricing](/pricing) has volume discounts built in, and we offer a pretty generous 20% discount for annual paid up-front plans, but some customers may ask for more. This table outlines what we would require in return (bigger spend/longer commitment) to secure that bigger discount.

| Minimum Spend | 1 Year | 2 Year | 3 Year |
|---------------|--------|--------|--------|
| $20,000 | 20% | 25% | 30% |
| $60,000 | 25% | 30% | 35% |
| $100,000 | 35% | 40% | 45% |

Also note that the minimum amounts here are _after_ discounts e.g. they will need to purchase a minimum of $25k of credit to get a discount of 20% and contract for $20k.
| Minimum Spend | 1 Year | 2 Year | 3 Year |
|---------------|---------------|----------------|---------------|
| $20,000 | 20% | 25% | 30% |
| $60,000 | 25% | 30% | 35% |
| $100,000 | 35% | 40% | 45% |

Also note that the minimum amounts here are _after_ discounts e.g. they will need to purchase a minimum of $25k of credit to get a discount of 20% and contract for $20k. The table below will help you with the list price required to enable each discount.

| Segment | 1 Year | 2 Year | 3 Year |
|----------|----------|----------|----------|
| $20,000 | $25,000 | $26,666 | $28,572 |
| $60,000 | $80,000 | $85,715 | $92,308 |
| $100,000 | $153,847 | $166,667 | $181,819 |

If a customer has an annual plan but doesn't _pay_ the whole year up front, we usually halve the discount. Our general principle is that a customer should get a discount because the cash up front is beneficial to PostHog, as it allows us to invest more in building more products, faster.

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