How ‘per-page’ pricing masks the true cost of your VDR

Imagine you’re working on your next deal, such as a merger or acquisition. You’re in control of all the details, including the budget. You know how much you or your client expects to spend on deal execution, including the cost for critical tools such as virtual data rooms. 

However, by the end of the deal, you realize your data room has unexpectedly cost 5x or even 10x the price you were initially quoted. Would you be happy paying for it?

This is a common problem for dealmakers, caused by a misleading pricing model used by legacy data room vendors. 

This article discusses the hidden fees that come with ‘per-page’ pricing and explains why we instead offer one clear upfront cost, so you know exactly what you’re paying at the start of every deal.

The ‘per-page pricing’ approach explained

If you’re paying for cloud storage, or even buying a new iPhone, you’d expect to be charged based on the amount of gigabytes (GB) of storage you need.

However, with ‘per-page’ pricing you’re instead charged based on the number of digital pages you upload to your VDR. It’s a hangover from the days when deals were done using physical data rooms, with information literally stored using pages of paper.

But how many ‘pages’ of data will you need for your next deal? It’s very difficult to work this out, and that’s really the point. 

If you’ve ever received a ‘per page’ quote, it probably looked something like the table below. You’re given a cost per page and an estimated cost based on the amount of storage you need.

It seems clear, right? And you’d rightly assume you know what you’ll be paying for your VDR. But it can be a trap. 

Legacy providers often don’t provide users with clear reporting of the storage usage in the VDR, which can turn into a big surprise when the final invoice arrives. Here’s how it works.

Three main financial risks of per-page pricing

The ‘per-page’ pricing approach carries three main financial risks. 

1. Hidden costs for different file types

Typically, a page refers to one page of a standard PDF. However, a transaction typically involves lots of different formats, including Excel spreadsheets, PowerPoint presentations, and zip files.

How many pages are in an Excel spreadsheet? Or a PowerPoint deck? Vendors will normally apply a different ‘per page’ rate depending on the file type.

This makes it very difficult to estimate the upfront cost of your data room or to predict where you might incur penalty costs for exceeding the ‘per page’ limits in your contract.

Ideals removes the guesswork by providing an upfront cost based on the amount of GB you need, allowing you or your client to budget with confidence.

2. Time overages

Additionally, there’s a question of how your vendor manages project extensions. 

It’s not unusual for transactions to take longer than you expected. What happens to the cost of your VDR if you end up using it for a month longer than initially planned?

Vendors with a ‘per-page’ pricing approach commonly add on penalty charges for customers that exceed the initial term limit. Rather than charging a prorated cost (i.e. extending the same monthly rate for the initial data room), these vendors will charge 2x or even 3x more for the additional time.

With an Ideals VDR, any contract extensions will be charged at the same rate as in the original contract, so you know exactly how much the additional time will cost.

3. Total uploads vs. data amount billed

Another issue with a per-page pricing model is how your charges are worked out. Rather than charging you for the total amount you have stored in the VDR, legacy providers charge you every time you upload data to the VDR.

In the process of preparation for due diligence, for instance, you probably delete some documents from the data room to make edits. You then upload those documents to the data room again. 

And here’s a surprise: you’re charged for them again. Legacy vendors will typically charge you for each page you upload, even if you edit and re-upload the same page more than once.

And what if you need to make updates 10 times for a single document? This would mean you pay 10x for one file. 

Ideals’ usage-based pricing and its transparency

For Ideals, client trust is crucial. That’s why we offer one clear, upfront cost so you know what you’re paying for, with no surprises. 

• Usage-based model
  You only pay for the amount of storage you need to use. No pages, only GB and MB. It means you plan confidently and move forward with certainty.
• No extra charges for extensions
  When your deal or project is prolonged, the price for Ideals services remains unchanged. The total cost is prorated based on your project length.
• No extra charges for the number of uploads
  You only pay for the storage space in GB and MB, no matter how many times you delete and upload the same file again. 
• Real-time storage reporting
  Stay in control of your data storage with real-time reporting and notifications, ensuring you have total visibility over your VDR usage and don’t accidentally exceed your limits.

Usage-based vs. ‘per-page’ VDR pricing

There are stark differences between usage-based and ‘per-page’ pricing. Consider which one you prefer for you or your client’s next deal.

Client success stories: Avoiding hidden costs with Ideals 

Our clients appreciate the transparency and predictability they get from our usage-based pricing model. Here’s what they say:

• “The subscription plans were easy to understand and had no hidden fees, which you don’t always get from VDR providers.” – Julia Gadanecz, Orcan Energy
  
• “Compared to many other providers, the price structure is fair, so that customization is also possible for individual needs.” — Anonymous user in Consulting
  
• “The pricing structure is competitive and not based on a per-page use, but rather on storage size, aligning well with the functionality provided.” — Anonymous user in Renewables & Environment.

To sum up

A ‘per-page’ VDR pricing model might be something you’re used to, but it comes with hidden costs that can significantly increase the overall cost of your contract. You’re likely going to be hit with additional costs for contract extensions, different media files, and total uploads.

With our usage-based pricing model, you have total clarity on how much your data room will cost, so you can budget confidently, stay in control, and close your deals without surprises.