If you’re trying to find a better alternative to your existing expense management tool, it’s crucial to focus on how its advantages will benefit your organization — but that’s not the only thing that counts. Pricing is also an important consideration in this equation, particularly when distributing the product to a big number of users. At Rydoo, we believe it is only fair to have a pricing model strategy that works for everyone, therefore we’ve opted to handle things a bit differently from the rest of the business. In this post, we’ll look at our philosophy and how we created a pricing model that can be applied to any type of business.
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Problems with traditional pricing
A lot of tools in the realm of expense management have a pricing model that’s either based on expense reports or user accounts.
When it’s based on expense reports, you pay every time a report is created by the tool. While your tool may make it easy to create an expense report, you may end up paying a high monthly price for that ease of use. While this might work fine for other tools, it doesn’t align with the way Rydoo works. We strongly believe in line-by-line expensing, which means you submit every expense individually. This saves everyone a lot of time and makes reimbursement cycles significantly shorter — but it also requires that we don’t put limits on how expense reports are created.
Alternatively, the product is charged by the user, meaning that the number of user accounts is multiplied by a monthly fee. You either pay for all accounts that have access to the tool, or you buy a package that includes access for a set number of accounts, allowing you to upgrade if you need more users. While this model is more flexible than paying per expense report, it still isn’t perfect. System administrators often create an account for everyone who needs one, but then never checks if they’re actually being used — meaning lots of unused accounts still end up on the bill.
Simply put, we think this isn’t fair. That’s why we’ve created a model that works for any kind of company — big or small, bootstrapped or well-funded.
The Active Users model
We think that when you decide to start using a new tool, it makes sense to give everyone in your company access to it. This especially rings true for an expense management platform, as initially, it might not be clear who needs to use it on a regular basis. On the other hand, we also think you should only pay for the people who are really using the product. It’s a cheap trick to make money off the back of unused accounts, and we wouldn’t feel good about doing it.
Our Active Users model is unique because it only looks at the accounts that have logged in and used the product. This number is then used to calculate a fair price — and it’s automatically adjusted taking into account your new usage numbers.
So how does it work exactly? If you decide to work with us, we’ll help with setting up your organization. At this point we don’t have any usable data yet, so you’ll need to make an estimation of how many active users you think you’ll have in the first year — and we’ll charge you based on that number. We know it’s hard to make an accurate estimation of how your company will perform in the next year — you might grow much faster than expected, for example. No worries, we’ve got you covered. You’re able to create an unlimited amount of accounts without having to pay any extra fees.
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After a year we look at how many of your accounts have actually been using Rydoo. We take the average amount of active users in the last six months and calculate your new fee based on those numbers. That’s it! No hidden costs, no tricks, no non-sense. Now you can go ahead and happily use the product for a year again, after which the process repeats itself.
Supercharge your expenses with Rydoo
You’ll get much more than just a great price with Rydoo, the innovative all-in-one expense platform. By combining smart benefits with a seamless user experience, we’ve reinvented expense management from the ground up. Enjoy a flexible plan, control your spending and save time — Get in touch with our team today and see how you can benefit from Rydoo.
Get your demo today, here.