Average Sales Price
The average revenue per deal closed. Simple metric, but segment it or it lies to you — one enterprise whale can make your SMB motion look healthy when it's actually dying. Track ASP by segment, channel, and rep to find the real story.
Closed 20 deals in the quarter: 15 SMB deals averaging $10K, 4 mid-market at $50K, and 1 enterprise at $200K. Blended ASP: $25K. But the segments are wildly different. SMB motion generates $150K/quarter, mid-market $200K, enterprise $200K. Same resources on mid-market would produce more with less effort.
ASP is one of those metrics everyone tracks but few analyze properly.
The problem: blended ASP hides everything. If your ASP is $50K, is that because you're consistently closing $50K deals, or because you closed one $400K deal and nine $10K deals? Very different businesses.
The second problem: ASP trends get gamed. Reps bundle in discounts as 'free months' instead of price reductions. Implementation fees get separated from license revenue. Same economics, different ASP.
Track ASP by segment, by product, by rep, by channel. The blended number is for board decks. The segmented numbers are for actually running the business.
Define ItOther Definitions
“Average Sales Price (ASP) is the average revenue per deal, typically measured as total bookings divided by number of deals. It indicates market positioning and sales motion effectiveness.”
“ASP reflects the average deal size, critical for understanding unit economics and planning sales capacity. It should be tracked separately for new business vs. expansion.”
“Average contract value or selling price indicates market segment fit. Tracking ASP trends by cohort reveals pricing power and market positioning changes over time.”
Average Sales Price is total revenue divided by number of deals in a period. SaaStr frames it as a market positioning indicator. OpenView emphasizes the unit economics implications. Bessemer connects ASP trends to pricing power.
ASP analysis considerations: (1) Segment by deal type — new business, expansion, renewal; (2) Track by customer segment — SMB, Mid-Market, Enterprise; (3) Monitor trends — is ASP growing, flat, or declining?; (4) Account for discounting — list price vs. actual selling price; (5) Separate license from services — for cleaner recurring revenue analysis.
ASP combined with sales cycle length determines sales capacity and quota-setting.
MistakesCommon Mistakes
Using blended ASP when segments have different economics
Not tracking ASP trends over time by cohort
Confusing list price ASP with actual selling price ASP
Ignoring services/implementation in total deal value
Comparing ASP across companies without motion context
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