Data rooms employ several different models to determine their cost. Some data rooms charge per page, and others charge according to the size of the storage. Some use a monthly flat fee. It is essential for M&A professionals to understand the average VDR cost for each pricing method so that they can make informed decisions on the most suitable vendor for their needs and budget.
One of the more common ways to determine the cost of goods is to base it on the number of documents stored in the data room. This is a good option for teams that don’t require to be flexible with the file sizes they can upload, but it won’t work for projects that require a lot of collaboration.
Another way that some vendors determine the price of the cost of a data space is by using the number of administrative users. This method is suitable for teams that have limited requirements for collaboration and sharing of documents, but is costly for projects requiring more sophisticated tools, such as security visualization, visual analytics, and collaboration.
Some vendors utilize a flat-fee, monthly model. This is ideal for long-term M&A transactions that have a variable timeline that are difficult to estimate. This pricing model is also ideal for businesses that wish to avoid the costs of scanning and uploading large amounts of physical documents. Another aspect to consider when using this model is whether or not the provider includes client service in the pricing. Certain providers, for instance, offer support by a designated coordinator on evenings and on weekends, as well as after office hours. This is a great option when working with documents that require time.