You’re putting the same requests and forms, doing the same due diligence, getting the same approvals, etc. All contracts need to go through the same contract review, etc.
Few places I’ve worked have sensible rules to bypass that.
You still need to make sure you’re value for money, but aren’t as constrained as absolute price as much.
From time to time, we see cases where a single user signs up but purchases 20–50 seats for a year upfront. That’s still always surprising me in a good sense.
The whole topic of seats could actually be a separate discussion on its own, 'cause there are many nuances, good/bad approached and funny situations we’ve run into along the way ))