January 6, 2020

Fun facts about SaaS Pricing

A few of the nuggets we've found in 10,000+ data points

by @awwstn

founder/ceo @capiche
awwstn's avatar
Categories
Cloud Computing
Analytics
Accounting
Business Intelligence

Last week there was a trend on Twitter where people offer one prediction/hot take for each Like their tweet gets. Since we come across so many interesting nuggets on SaaS pricing, I decided to try it out:

The response blew me away -- according to Twitter, more than 40,000 people read my thread of Tweets. So, I thought I'd repost some of the most popular ones here. Enjoy!

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For a team of 10 users, Jira costs $100/year

For a team of 11 users, it costs $1050/year

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It's illegal for SaaS vendors to require customers in California to email/call to cancel their plans.

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BambooHR's self-serve pricing increased 604% from 2009 to 2014, after which they switched to enterprise/custom pricing

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An Intercom customer got this email from them recently:

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Asana's price per user (on the Premium plan) increases as your team grows:

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Slack charges a lower price per user for customers in India

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Software prices went up 62% on average over the past decade. 3x faster than inflation! [source]

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Adobe Creative Cloud allows monthly plans, but those monthly plans are still an annual commitment, early termination costs 50% of your remaining time

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Zapier has some of the friendliest refund policies in the industry

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BambooHR's self-serve pricing increased 604% from 2009 to 2014, after which they switched to enterprise/custom pricing

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If you bought every edition of Microsoft Office since they very beginning (at retail price), you'd have paid a total of $4,033.

This breaks out to $21.98/user/month (adjusted for inflation)

If you started at Office '96, this number drops to $12.36/user/month

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Lots of SaaS vendors run a/b tests on pricing and plans (so some plans may offer more features or consumable items for the same price). Worth opening an incognito window or turning on a VPN or checking from your phone before paying.

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The first Microsoft Office in 1990 only included Word, Excel, and PowerPoint, and cost $995.

That's $1,958.09 in today's dollars.

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Dropbox cost $9.99 a month for 50GB in 2009.

That's $11.93 in today's dollars···and for only 6¢ more today, you get 2TB of storage.

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In the past 12 years, G Suite's per user per month cost has only increased by $1

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Typeform costs over 3x what it did when it started charging in 2014.

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Photoshop cost $1000 when it came out in 1990.

In today's dollars, that'd pay for Creative Cloud Photography (including Photoshop and Lightroom) for 16.5 years.

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It might be cheaper to use individual accounts and let your team expense them. Adobe Creative Cloud costs $52.99 for individuals, or $79.99 per person (or over 50% more) if you buy as a team.

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QuickBooks lists its pricing with a discount···that only lasts for 3 months. The real price you'll pay is the one crossed out.

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Intercom charges the same today for 2,500 contacts as it did for 10k contacts originally.

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Insightly's price went from just under $5/month in 2012 to $29/month in 2019.

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Asana's price went up 3x in 5 years, from $3.33/month in 2012 to $9.99/month in 2017.

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LastPass cost a dollar a month a decade ago. Today, it's tripled to $3 a month.

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Signing documents got twice as expensive over the past decade with DocuSign going from $19.95/month to $40/month.

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Click here to tweet this essay (you can edit the tweet before sending). Capiche is on a mission to drive transparency in business software. To see what real companies are actually paying for hundreds of SaaS products, visit capiche.com/products

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