The average price charged per unit, seat, or item sold.
.webp)
Average unit price measures the revenue generated per unit sold. It is calculated by dividing total revenue by total units sold over a period.
If you sold 1,000 seats for 50,000 euros total, average unit price is 50 euros.
This metric reflects your pricing power. A higher average unit price means you capture more value per unit. A lower average unit price might indicate discounting, a shift toward smaller customers, or price erosion.
Average unit price is influenced by your pricing structure, your customer mix, and your discounting behaviour. If you offer volume discounts, larger accounts will have a lower unit price. If you sell premium tiers, customers on those tiers will have a higher unit price.
Track this metric over time to spot pricing trends. A declining average might signal competitive pressure or sales team discounting habits.
Average unit price is your pricing health indicator. It tells you how much revenue you capture for each unit you sell. Combined with units per invoice and invoices per contract, it determines total customer value.
This metric reveals the effectiveness of your pricing strategy. If you raise prices but average unit price stays flat, discounts are eating the increase. If you launch a premium tier but average unit price does not rise, customers are not buying it.
Average unit price directly impacts revenue and margins. A 10% increase in unit price at constant volume is a 10% revenue increase. That often flows straight to profit.
This metric also reveals discounting behaviour. Sales teams under pressure often discount to close deals. That shows up as declining average unit price. Making this metric visible creates accountability.
Pricing power is a competitive advantage. Companies that can charge more for their units have stronger positioning, better differentiation, and more perceived value.
Calculate average unit price:
Average unit price = Total revenue / Total units sold
Track this monthly. Break it down by:
To increase average unit price:
A software company charges 45 euros per seat. They have not raised prices in three years. They increase to 55 euros per seat for new customers. Average unit price increases from 45 euros to 48 euros as new customers come in at the higher rate.
A consultancy finds that average hourly rate has dropped from 150 euros to 130 euros over two years. Analysis shows increasing discounts on proposals. They implement a discount approval process requiring manager sign-off above 10%. Average hourly rate recovers to 145 euros.
A SaaS company has one pricing tier at 30 euros per seat. They launch a premium tier at 50 euros per seat with additional features. 25% of new customers choose premium. Average unit price increases from 30 euros to 35 euros.
Acquiring customers is expensive. Keeping them is where margins improve. What would happen if none of your customers left? Build feedback loops, long-term relationships, retention programmes that reduce churn, and upsell frameworks that grow account value without being pushy.
Acquiring customers is expensive. These tools help you keep them longer and grow their accounts so your acquisition costs actually pay off over time.
Revenue per customer determines how much you can spend to acquire them. Get this number wrong and every other growth decision is built on bad assumptions.
Churn kills growth. Identifying at-risk accounts early and addressing concerns proactively keeps customers longer and makes your acquisition investment worthwhile.
New customers are expensive. Growing existing accounts is where margins improve and growth becomes sustainable without constantly feeding the acquisition machine.
Follow structured selling frameworks that provide consistent processes for qualifying, demonstrating value, and advancing opportunities through each pipeline stage.
The average number of invoices issued per customer contract, reflecting contract length and billing frequency.
Survey customers about satisfaction with specific interactions or products to catch problems early and identify what drives positive experiences worth replicating.
Measure customer loyalty by asking how likely they'd recommend you to gauge satisfaction and identify promoters who drive referrals versus detractors risking churn.
Design presentation slides that guide discovery and demo conversations whilst reinforcing key messages visually so prospects retain information after meetings end.
Collect specific customer quotes about results achieved to provide social proof that overcomes scepticism more effectively than marketing claims buyers discount.
The average number of units, seats, or items included on each invoice.
Provide formal pricing for requested solutions to move qualified prospects toward purchase decisions with clear costs and terms they can review and approve.
Proactively help customers achieve desired outcomes to drive retention and expansion by ensuring they extract maximum value from your solution.
Calculate the total revenue a customer relationship generates over its entire duration to guide acquisition spending and retention priorities.
Arm sales reps with competitive intelligence on one-page sheets covering competitor strengths, weaknesses, and effective counter-positioning for common objections.
Combine usage, engagement, and satisfaction signals into one metric that predicts churn risk so customer success teams prioritise accounts needing intervention.
The average price charged per unit, seat, or item sold.
Determine how to charge for products and communicate value to maximise willingness to pay whilst remaining competitive and supporting desired positioning.
Calculate what percentage of customers renew subscriptions to measure product-market fit and customer success effectiveness at delivering ongoing value.
Track how customers interact with your product to identify power users, detect at-risk accounts, and guide feature development toward actually valuable capabilities.
Create single-page summaries of solutions or case studies that busy decision-makers can quickly scan to understand value without reading long documents.