https://open.substack.com/pub/goswamis/p/the-349-million-question-what-data?r=5zpq7f&utm_campaign=post&utm_medium=web

Data from 20,000+ SaaS deals shows how founders lose margins in negotiations. Learn how to close better deals using proven tactics.

The Scale of SaaS Negotiation Waste

In SaaS, negotiation isn’t just a final step—it’s where millions are won or lost.

Recent analysis of 20,000+ SaaS deals found that customers negotiated about $349 million in savings, averaging ~16–17% off list pricing. That’s not just “procurement being tough.” It’s evidence of systematic overpricing corrected at the negotiation table.

And this problem goes deeper:

• According to Zylo’s 2025 SaaS Management Index, companies waste 53% of their SaaS licenses, paying for tools they never fully use.
• Enterprises now run an average of 275 SaaS apps, meaning your buyers have benchmark data from hundreds of negotiations.
• Most providers have raised prices ~10–15% since 2022, yet many founders still default to blanket discounts just to win deals.

The message is clear: sloppy negotiation isn’t just shaving margins—it’s destroying long-term value.

The Hidden Costs of Bad Negotiation

Here’s what the numbers tell us about leaving money on the table:

• License waste: Paying for shelfware—nearly half of licenses go unused.
• SaaS inflation: Price hikes averaging 10–15% outpace market inflation by nearly 5x.
• Lack of training: Many SaaS sales teams still negotiate reactively, without deal-level pricing playbooks.

Together, this creates a cycle where customers expect big concessions, and vendors sacrifice margins instead of structuring smarter deals.

What Actually Works: Data-Backed Negotiation Tactics

1. Multi-Year Commitments Create Win-Win Scenarios