Monday Price Point:

‍Metric Granularity is the technical term (that I invented, full disclosure) of the size of the unit you charge via your pricing metric.
So if you charge $100/user/mth - then the metric is #user while the granularity is '1', if you charge per single, individual user.
Substitute for any metric of course: #GB, #Store Locations, price per #payslip etc. You can use metric granularity to your advantage in two ways:

1. To increase the size of the smallest possible purchase : if you charge per 3 users in the scenario above, then your smallest MRR is $300, not $100. This can be a big deal.
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2. To overcharge: if you are charging per 3 users, then all accounts - on average - will be charged for 1.5 users more than they need.
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In my experience the 'overcharge' mechanism is *never* negotiated if the incremental change is <5% - so it's basically free money.
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Anything lower than 2% is just a waste of time. So 2-5% should be your minimum target.
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And often it's not even negotiated at higher relative rates - e.g. paying for 12 users and only needing 10, which is a +20% relative increase!

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How to do it:

This is one of the things that can be implemented in 1-2 weeks and that will not take too much convincing of the sales team - so just get it done.​There are going to be some billing issues with the execution (e.g. setting up individual SKUs for each new 'tier' of users), but the payoff is there.​When you launch, expect customers to give a bit of pushback - this is mostly a communication issue, so experiment with different ways of communicating it:

"We charge in increments of 3 users" vs. "This plan has 3 seats included".
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80% of problems are fixed at the communication level.
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If there is more pushback, you might have gone too aggressive on the size of the increment (e.g. per 20 users might be fine for enterprise, but too aggressive for smaller accounts).
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Here you have two solutions:
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1. Reduce the granularity to a smaller increment (e.g. back down from 20 to 5).
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2. Use the pro-trick of 'expanding granularity' ​
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Expanding granularity is basically changing the metric increment as you go up in size:
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Monday.com, for example: charges for 3, 5, 10, 15, 20, 25, 30, 40, 50 seats
The increments, then, effective are: 3, 2, 5, 5, 5, 5, 5, 10, 10.
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This basically 'scales' the size of the unit to the size of the customer, so that you always charge in a way that is just chunky enough to produce real $$, but not so chunky as to disrupt the sale.
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As promised: a point about pricing, every Monday.