Klaviyo pricing: how to get a discount
Leon Brown | MAY 11, 2023
Marketing automation platform Klaviyo has certainly made waves in the customer success space over the past decade. Not only is it frequently featured in top-100 type lists, but it’s also driven billions in revenue for its client base, making it a firm favorite for organizations looking to unlock their growth potential.
The question is, how much does it cost?
While Klaviyo is among the minority of software companies that advertises its pricing, these costs aren’t necessarily set in stone. Our own data does in fact indicate that, like most vendors, the company will discount its pricing – as long as you have the leverage.
But, how do you gain this leverage? And how much of a saving can expect to make?
Here’s everything you need to know about Klaviyo’s pricing.
How much does Klaviyo cost?
Before we jump into the potential cost-savings, it’s worth understanding how the company’s pricing model actually works.
The amount you can expect to pay ultimately depends on whether you’re wanting both email and SMS communications, or just email.
Let’s look at what both pricing models entail.
Email and SMS
While many SaaS platforms operate a user-based pricing model, Klaviyo’s pricing is dependent on the number of contacts within your database, the amount of emails you want to send per month, and the amount of SMS/MMS credits you require.
While prices start from $35 per month for organizations with up to 500 contacts, for businesses with between 145,001 and 150,000 contacts can expect to pay in excess of $1,970 per month.
The figures do, however, only reflect the base pricing for each end of Klaviyo’s tiers, and actual fees may differ significantly depending on your desired usage each month. As an example, companies purchasing the upper limit of 450,000 SMS credits to support a 150,000-strong contact list will pay $5,780 per month – a significant increase over the base price.
Organizations looking to deploy email-only services can distribute their campaigns for up to 250 contacts for free. Enterprises with contact lists that exceed this threshold will need to purchase a paid plan, starting at $20 per month and ranging up to $1,955 per month for contact lists between 145,001 and 150,000.
Klaviyo One pricing
Klaviyo’s new enterprise-grade subscription, Klaviyo One, boasts premium support and scalable functionality for larger brands.
Companies with a database exceeding 150,000 contacts are advised to contact the Klaviyo sales team directly to receive a pricing quote based on their needs.
While this is the norm for many vendors across the SaaS industry, it presents a challenge for buyers like yourself trying to obtain enterprise-level pricing without having to enter into a sales conversation with the vendor.
So, how else can you gain a frame of reference on how much you can expect to pay for a Klaviyo One subscription?
One solution is to scour the web for anecdotal cases of what other companies are paying.
One Capterra user with 260,000 contacts claims to be spending $2,100 per month, which is in the same ballpark as the pricing outlined in this RevPilots article. The same article further indicates that the price incrementally increases up to more than $4,000 per month, for those with larger databases.
But while these figures can give you a rough estimation of what you could expect to pay for Klaviyo One, it can’t be ignored that marketing vendors in particular offer some of the best discounts across the SaaS industry – an average of 32% – with Klaviyo itself having a medium discount possibility, according to our data.
So, how can you ensure that you’re getting quoted the best possible price for the platform?
How to get a discount on a Klaviyo subscription
While it’s often possible to secure minimal savings on software with relatively low effort, you stand to secure far greater discounts with the right leverage and negotiation tactics.
But what are these tactics?
Allow generous lead time
One of the most common mistakes made during software negotiations is leaving it until the last possible moment. Ideally, you’ll always want to begin your negotiations well ahead of any deadline you have, for example, the deployment of a new marketing strategy, or the termination date of an alternative product in your stack.
Failing this, you may find yourself entering negotiations ill-equipped to barter for the best deal. Plus, leaving it until the last second might prompt a vendor to offer less flexible contract terms in the knowledge that you need a fast turnaround.
Commit to a longer subscription term
As you can imagine, securing a recurring sale is good news for software vendors. So, if you’re confident that the tool you’re adding to your stack will provide you with long-term business value, signing on for a longer subscription period can yield larger savings across your stack.
Our data tells us that software vendors will typically offer an extra 5% discount for every extra year that a user commits to. So, by signing on for a multi-year subscription, you could secure more value from your contracts.
Leverage pricing benchmarks
The best kind of leverage that you can gain in the negotiation process is intel into what other companies similar to yours are paying. And yet, as we’ve discussed, it can be challenging to effectively conduct your own research into pricing benchmarks. But this is invaluable data to possess in your arsenal. The reason being, it can encourage vendors to provide discounted price points and competitive contract terms.
So, how can you go about tracking down this all-important data, and ensure that it’s accurate and up-to-date?
In short, by talking to Vertice.
Save time and secure the best possible price on your Klaviyo purchase or renewal
With access to exclusive pricing and discounting data, Vertice is not only able to gain the leverage needed to secure you the very best price and terms on your contract, but by handling the purchase or renewal on your behalf, we can also save you a substantial amount of time.
See for yourself how much you could stand to save not only on your Klaviyo subscription, but on your entire software stack with a free cost-savings audit. Alternatively, search through our vendor database for the pricing intel for thousands of global software companies.