New data from SaaS purchasing platform, Vertice, reveals that the average real price paid for finance software is 22.2% less than the prices advertised. The company’s most recent SaaS purchasing report specifically looks at the 50 most popular platforms used within finance teams, including Xero, Sage and Payhawk, and analyzes the average discounts offered across the industry.
View the pricing data for all 50 finance software providers here: https://www.vertice.one/inside-saas/reports/finance-tools-2023
Pricing transparency remains a huge issue in SaaS, and while finance tool providers tend to be more forthcoming with their price points than other types of software providers, particularly sales tools, there are still huge disparities between what vendors want customers to pay and what many are actually paying.
Despite this, finance leaders aren’t necessarily securing any better discounts than any other departments. Data from the report shows that the average discounts afforded by finance tool providers are in-line with discounting in other software categories – marginally less than sales (23.4%) and HR (22.4%), but slightly more than DevOps (21.1%) and marketing (19.6%) platforms.
There is, however, some variance between the average discounts provided by the different types of finance software. While the average price paid for financial planning software is just 9.6% less than the list pricing, enterprise resource planning (ERP) platforms offer average discounts of just over 25%.
This data only reflects the average prices paid, however, and in some cases companies are being quoted up to five times more than what other similar sized companies are paying per license for the exact same tool. While the most substantial discounts are often reserved for those with greater purchasing power, this doesn’t necessarily mean those with a greater headcount that can benefit from economies of scale.
According to Vertice, the most favorable discounts are often provided to those with access to pricing intel, for example knowledge of what other companies are actually paying.
See how Vertice uses pricing benchmarks: https://www.vertice.one/inside-saas/pricing-benchmarks-software-negotiations
While the report provides data and insights that will enable finance leaders to secure the best possible savings on the tools they use within their own teams, it is also in their interest to ensure this is the case for all software being procured across their organization.
Learn more about how Vertice can provide maximum time and cost-savings when purchasing or renewing SaaS at https://www.vertice.one/
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Herald Quest journalist was involved in the writing and production of this article.