Data rooms employ different models to determine their pricing. Some are priced per page, while others are dependent on the size of storage. Some charge a flat amount per month. It is essential for M&A professionals to understand the average VDR cost for each pricing type to make informed choices about the best vendor for their needs and budget.
One of the most commonly used ways to determine the cost of goods is to base it on the amount of documents stored in the data room. This is a good option for teams that don’t need a lot of flexibility with the size of files they can upload, but it doesn’t make sense for projects that require extensive collaboration.
Some vendors calculate the price of a data room by taking into account the number of users who are administrative. This is a good option for teams with limited requirements for document sharing and collaborative work but it can be costly for projects that require more advanced tools, like security visual analytics, security collaboration.
Other vendors employ a flat-fee monthly model. This is ideal for long-term M&A transactions with a varying timeframe that is difficult to estimate. This pricing model can be utilized by companies that would like to avoid the expense of scanning and uploading a huge number of physical documents. This model also provides customer service. For instance, some companies provide support via a dedicated coordinator on weekends and after office hours. This can be useful when working with documents that require time.
