How would you feel if you paid more for a virtual data room but could buy the required services for less? It can happen when you are unaware of how data room pricing works. Although operations in the VDR industry have become more transparent, VDR pricing remains a tricky thing for customers.
The following is a comprehensive guide on virtual data room pricing models and how much a data room costs.
Common virtual data room pricing models
The virtual data room market is growing fast and is saturated with hundreds of sellers. Data room vendors sell their services through various pricing models, which may not be suitable for all types of uses.
The following are the commonly used pricing strategies applied by data room services and how they can be useful for your business.
1. Per-page pricing
Although per-page pricing has almost become obsolete, a few service providers still stick to it. Per-page pricing is a model in which the service providers charge the consumer for every page uploaded in the data room.
For example, if a document has 100 pages, the customer will have to pay for all the pages. So, if the per-page price is $1, 100 pages may cost the VDR user $100.
Per-page pricing models don’t really make sense, but it is useful for solopreneurs or small businesses who need minimal documentation.
It is also effective for minor transactions that require small-scale data sharing. Companies can choose this model if they want to protect crucial documents like patents, secret formulae, trademarks, and research developments.
Per-page pricing pitfalls make the model less desirable for modern-day businesses. For example, you have to be very specific about your data sharing needs. If you scale, the cost of using the data room will increase rapidly. What’s more, this model is not suitable for video data, as one video file may be equal to 5000 pages in the VDR. Currently, per-page pricing cost varies between $0.40-$1 per page.
2. Fixed Monthly Plans
Fixed monthly pricing is arguably the most common pricing system in the VDR industry right now. That is because it covers everything a buyer needs.
In this pricing model, the vendor charges a fixed monthly amount for predetermined services. It may include a fixed number of administrative users, storage volume, and non-administrative users. Most of the vendors provide different plans for small, medium, and large businesses.
Fixed monthly plans may start from $400 a month to $2000 a month, and they are recommended for large-scale transactions like capital funding and M&As.
VDRs are usually employed regularly and for longer periods. Businesses need to look for VDR pricing options that can accommodate everything. Thankfully, modern-day data room providers offer fixed monthly plans for SMEs, professionals, and enterprises, allowing them to buy the best services at affordable prices.
Fixed-monthly Virtual data room pricing is prevalent among the best virtual data room providers in the industry. However, it may not be a good option for short-term users.
3. Per-user pricing
The per-user pricing model is common in small businesses, teams, and corporate boards. There are multiple variations in per-user pricing. For example, some online data room software providers charge for administrative user licenses and allow an unlimited or specific number of non-administrative users.
On the other hand, service providers charge for every user added to the VDR. Remote teams, board members, investors, executives, etc., prefer this pricing model.
The price for an administrative user license ranges between $100-$250 per user, per month, and $15-$25 for non-administrative users. Per-user pricing is not a handy option for large teams or businesses.
4. Pricing based on storage volume
Some VDR vendors determine the cost of their services based on the total storage space consumed by the users. Generally, there is a fixed price for fixed storage space, and users will have to pay extra for additional storage used. On the contrary, some vendors charge buyers for every GB of storage they consume.
The pricing option is suitable for all types of businesses and professionals if there are minimal or no video or audio files. Audio and videos consume more space, and the cost may be high. Storage-based pricing may cost between $60-$80 per GB.
Factors that affect virtual data room pricing
The price variation mainly depends on the quality of service and the features provided by the vendors. The following elements directly affect the prices of data room services.
· Security
Security features in a VDR heavily impact pricing. A virtual data room with a large number of certifications and the latest security features like digital watermarks, fence-mode viewing, 256-bit data encryption, access control, audit logs, etc., will be pricier.
· Comfort
There are tons of features that improve efficiency while working in a VDR. These features simplify different processes and reduce manual input. Thus, the more comfort, the higher the prices. Some of these features include bulk uploads, drag-and-drop, full-text search, auto-indexing, mobile access, data analytics, smart search, project management tools, communication tools, and great customer support service.
Parting thoughts
VDR pricing is a crucial segment when you compare virtual data rooms for startups and other businesses. A detailed virtual data room comparison will help you save money. Fixed monthly pricing is the most common method used by the best data room providers. Other options include per-page pricing, per-user pricing, and pricing based on storage volume.
