When you are shopping around for a virtual data room, you will notice that the prices will span the gamut. While all of the data room providers have their own methods of calculating prices, the factors that go into the calculation remain fairly standard across the industry. In order to take some of the mystery out of data room pricing and to help eliminate sticker, we will break down some of the factors that go into price calculation.
1. The Number of Users
Complex deals such as M&A transactions and due diligence can involve hundreds of people and the more users you add to the data room, the higher the price will be. Having said this, you might still end up saving money by adding more users because you will save money on travel costs. Even if all of the participants are dispersed among different countries or continents, when they will work in the data room it will feel like everybody is in the same room together. Also, you will not have to send any documents via courier service to other participants since all of the documents that you upload into the data room will be available to everybody instantly.
2. The Amount of Data
Most data rooms are very flexible with their data plans and allow you to store all of the documents and materials you need. However, you will have to pay for all of the storage that you use. Most basic plans will give you about 1GB of storage which is good for about 10,000 pages and if you need more you will have to purchase a higher level plan. This also includes the number of projects that you have. If you have a lot of projects, you will also need more data. Keep in mind, that the money you invest in the data room will pay dividends even after the project is over since you the data room can serve as a central document repository with the capacity to virtually an unlimited amount of documents.
3. The Brand
Just like dinner at the Waldorf Astoria would cost more than dinner at a fast food restaurant, the big brands that have been around for a while will charge more simply because of the brand name. However, it is not worth to overpay just to use a data room with lots of brand recognition. You will be able to find lots of data rooms that offer the same or even better quality of services that the bigger brands for a fraction of the cost.
4. Additional Bells and Whistles
When you are comparing data rooms, be sure to look at some of the innovative features that they offer. For example, some of them will offer features that will give you additional peace of mind such as remote shredding and protection against camera based attacks. Therefore, it is better to understand the scope of your project before you begin shopping because you will know for sure what you need and the features you will not be able to live without.
5. Level of Customer Support
During the course of the project, you might get stuck and need assistance from customer support. If you would like to receive assistance whenever you need it, not just during regular business times, you will have to pay for such a level of service. Keep in mind that you might be located in a completely different geographic area than the data room provider and their regular business hours might differ significantly from yours. This is why it is better to buy a plan that offers 24/7 support. Additional customer service benefits that will be included in higher pricing plans will be support in languages other than English, live support, premier tech support, and other benefits. With all of these factors in mind, try to find the data room that is best for you. When you encounter the prices that they charge to keep in mind that sometimes it is worth paying more if it will give you better agility. For example, if a pricing plan has features that streamline workflows and help get your deal done on time, then it is better to buy such a plan. Delays that can cause your deal to drag on and on will cost you more in the end. Therefore, be sure to weigh all of the pros and cons and come to a unified decision in terms of what is critical to have and then be sure to buy the features that you will not be able to work without.