More and more fleet managers are starting to realize the advantages software as a service (SaaS) pricing model can offer them. But what does the SaaS pricing model look like? And what benefits does it offer you and your business?
What Is the SaaS Pricing Model?
The SaaS pricing model is identical to the subscription pricing model. You don’t have to sign a long-term contract. Instead, you pay month by month and can cancel your subscription when you want. This pricing structure is simple and straightforward, leading to four key benefits for fleet managers.
Benefit #1: No High Upfront Investment Costs
One of the top benefits of the SaaS pricing model is that you don’t have to pay high upfront investment costs for your fleet management software.
The month you choose to start your subscription, you pay the monthly cost. You may also pay a small fee for any equipment that your provider has to install. With the Saas pricing model, there are no:
- Setup fees
- Training fees
- Hardware fees
- IT support fees
Without high upfront investment costs, your brand can start paying an affordable monthly price from the get-go. This lowers the barrier to entry, making it more likely that you can afford and use the fleet management software as soon as you decide it’s the right choice for you.
benefit #2: Predictable Expenses
The SaaS pricing model incurs the same monthly fees every month unless you choose to upgrade or downgrade your subscription.
With a subscription to fleet management software, you won’t have to pay for:
- Ongoing maintenance
- Operational costs
- Miscellaneous expenses
Even though you don’t have to pay for these items, you never have to worry about maintaining the software. Continuity of service and software updates are guaranteed. Plus, you don’t need to build out your own IT team to help manage security or code issues; SaaS providers like Vertrax maintain their own dedicated IT team. They will quickly resolve any security breaches or bugs.
Benefit #3: Reduced Risk of Incurred Costs
Software offered on the SaaS pricing model is hosted on the cloud. In other words, you access and operate it through a reliable and secure web browser.
Cloud software makes your brand less likely to:
- Experience long service interruptions
- Be liable for security incidents
Without service interruptions, your team can rely on smooth operations and reduced chances of expensive service delays or problems. Without frequent security incidents, you reduce the chances of costly security recovery costs. Even if security incident costs are incurred, your software provider will cover them.
Benefit #4: Flexibility
Above all else, the SaaS pricing model is flexible. This is a powerful benefit at a time when the business environment can change at the drop of a hat.
At any point in your subscription, you can:
- Adjust capacity based on need
- Discontinue the subscription
- Restart the subscription if it is prematurely discontinued
This level of flexibility empowers you to keep using the fleet management software when you need it, and lower (or cancel) the subscription if you don’t need it anymore. Plus, providers know that you have this flexibility. This knowledge encourages them to maintain top-notch technology and updates to retain your business.
It’s no wonder that the SaaS pricing model is quickly taking over the fleet management software industry. It reduces costs by mitigating upfront investments, providing predictable expenses, lowering tangentially incurred costs, and offering flexibility. Ultimately, it’s your most cost-effective option for securing a high ROI and streamlining your fleet for years to come.