I don't know if that's a smart way to bypass pesky hidden information negotiations and suss out other party's upper bound or a really stupid way to do business...
A lot of value in some SaaS apps is in the initial investment it took to build it, not in the cost to host a customer's assets.
If the runtime costs of a new customer are negligible, would you rather have 0K or 20K?
If dodgy pricing/sales tactics didn't work then Oracle would be bankrupt instead of a 300 billion dollar company.