The Vendor Cheatsheet/THE VOLUME DISCOUNT REFLEX: A PRICING HABIT MOST LEGAL TECH VENDORS SHOULD BREAK

The Volume Discount Reflex: A Pricing Habit Most Legal Tech Vendors Should Break

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In most legal tech products, the 51st user gets the same individual benefit as the first user, at near-zero marginal cost to the vendor. Volume discounting in that context is not a pricing strategy. It is a transfer from vendor margin to buyer procurement, executed on autopilot, with no underlying economic logic. 

In this article, we examine the flat-utility insight, what volume discounts actually signal, when volume discounts are economically justified and what to price instead, holding the line in negotiation, and the renewal trap.

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