Data rooms use various models to determine their pricing. Some are per-page priced as well as others dependent on the size of storage. Some use a monthly flat cost. It is essential for M&A professionals to be aware of the average VDR cost for each pricing method to make an informed choice about the best vendor for their needs and budget.
One of the most common methods of determining the price is to base it on the quantity of documents that are stored in the data room. This is a great option for teams that don’t need to be flexible with the file sizes they can upload, but it won’t make sense for projects that require a lot of collaboration.
Another way that some vendors determine the pricing for a data room is by counting the number of admin users. This is also a good option for teams that have limited requirements for document sharing and collaboration, but it can be costly for projects that require more sophisticated tools like security visualization analytics, collaboration, and security.
Other vendors employ a flat monthly fee model which is perfect for long-term M&A transactions that may have a varying timeframes and are difficult estimate. This pricing model can be utilized by companies who want to avoid the cost of scanning and uploading a huge quantity of physical documents. Another thing to think about with this model is whether or not the service provider offers customer support in its pricing. Certain providers, for instance, offer support by a dedicated coordinator at weekends and after hours. This is a great option when working on documents that are time-sensitive.