Pricing per user vs. per project: which model is best suited to your SaaS project management team?
Choosing the right pricing model for a SaaS project management tool is crucial to controlling costs and maximising productivity.
Unlike traditional software with single-purchase licences, SaaS tools are virtually all based on monthly or annual subscriptions.
Two pricing models dominate the market: per user and per project. Although per-user pricing is the standard in over 95% of cases, it can lead to hidden and unforeseen costs.
The ‘project pack’ pricing model offered by Teambook, on the other hand, offers greater flexibility and better cost management, as we will explain in detail below.
Understanding per-user pricing: a standard with costs that are often underestimated
The per-user pricing model is ubiquitous in the SaaS industry. At first glance, it seems affordable, with typical costs of around USD 8 per user per month. However, this approach can quickly become expensive when you consider the total number of users required to operate the tool effectively.
Why do costs explode with per-user pricing?
- Underestimation of the number of users: Many companies start by assuming that only team leaders or managers will need an account. In reality, this model implies that all internal users need an account to access the tool, including trainees, temporary staff, subcontractors and sometimes even customers who need to log in. This can easily multiply the initial costs.
- Costs for inactive users: Users are often not removed from the system even after they have left the company, resulting in ongoing monthly charges for inactive accounts.
- Fluctuating and unpredictable billing: Each new user added increases the monthly cost, making budget management more complex and unpredictable.
Let’s look at an example: let’s imagine a company with 10 active users. With a price per user of USD 8 per month, the total monthly cost is USD 80. If the company grows and adds 5 more users, the cost rises to $120 per month. This model leaves no margin for seasonal fluctuations or the temporary addition of resources, which can quickly add to the bill.
Why is Teambook’s per-project pricing more advantageous?
Unlike the per-user model, Teambook’s « project pack » pricing is designed to offer maximum flexibility and better cost management, with no surprises. Here’s why this model is more advantageous:
- Unlimited users at no extra cost: With Teambook, you can have as many users as you need at no extra cost. Whether you have 10, 20 or even 50 users, the cost remains stable because it is based solely on the number of projects managed.
- Cost stability: Teambook offers stable billing with « project packs ». This means that your cost remains constant from one month to the next, even if you add new users. You know exactly how much you’ll be paying each month, which makes budget planning easier and avoids surprises.
- Savings as soon as the team exceeds 8 users: Using our previous example, if a company with 10 users opts for Teambook with an S plan (which starts at USD 80 per month for a certain number of projects), it is already saving money compared with per-user pricing. As the team grows, the savings increase. In fact, 100% of Teambook customers and competitors have more than 10 to 20 resources. For these teams, the per-project model is systematically more profitable than the per-user model.
Direct comparison: pricing per user vs. pricing per project
Cost and predictability:
Pricing per user may seem straightforward, but it’s often underestimated, not least because of the additional costs associated with team growth and maintaining inactive accounts. Teambook’s per-project pricing, on the other hand, is transparent and predictable, allowing teams to concentrate on managing projects without worrying about the fluctuating costs associated with adding or removing users.
Flexibility and ease of management:
With Teambook, teams have total flexibility to add as many users as they wish, with no impact on costs. This is particularly advantageous for fast-growing companies or those working with fluctuating teams, including freelancers, interns or external consultants.
Scalability and cost control:
Teambook offers unprecedented scalability. No matter how many users you add, as long as the number of projects remains within your pack, your costs are under control. This gives you precise control over costs while offering the flexibility you need to respond to the changing needs of your business.
Choosing Teambook for efficient, cost-effective management
By choosing Teambook and its project-based pricing, you are opting for a model that promotes transparency, flexibility and cost optimisation.
Unlike per-user pricing models, which can quickly become costly and difficult to manage, Teambook allows you to maximise your budget while offering unlimited access to all the members of your team.
Things to remember
In conclusion, for project management teams looking to optimise their costs while maintaining maximum flexibility, Teambook’s project-based pricing is the ideal solution. It allows you to avoid hidden costs and keep total control over expenditure, regardless of the number of users.
Try Teambook today to discover how our project-based pricing model can help you better manage your resources while optimising your costs. Sign up now for a free trial and see the difference for yourself!
