As you embark on your journey to find the best data room possible, you will probably notice that the prices these data room charge vary significantly. However, since not all data rooms were created equally, it would make sense that the prices are not the same either. The reasons behind the prices will depend on a lot of factors and we will try to give you as much information possible about what goes into the pricing which you can use to make a collective decision in terms of whether the services the data room provider offers are worth the price.
How Much a Virtual Data Room Costs
- The first thing that will impact the price is the amount of storage you will be using. Usually, data plans will start with 1 GB of data which is about 10,000 pages. If you are involved in some big project such as an M&A transaction or due diligence you are likely to need much more. It is always a good idea to leave yourself with wiggle room in this regard because in the event that you run out of storage you will have to change plans in the middle of the project which could cause significant delays. Usually, data room providers offer flexible storage plans which allow you to pay for only what you use. However, the more storage you use, the more you will have to pay.
- The number of team members who will be working on the project will influence the price. While most data room providers will give you the flexibility to add participants even in the middle of the deal, the more participants you have the more you will pay. However, even though it might cost more to add people, you could end up saving money in the end because you will not have to physically travel to a certain location to conduct the deal. The data room can allow each member to be dispersed in various locations all over the world, yet feel like they are all in the same room together.
- The bigger brand names will charge more money simply because of the brand. Just like a meal at the Waldorf Astoria will cost more than at a fast food restaurant, a big name data room will cost more than one with a lesser brand name. In most situations, it is not worth overpaying just to work with a bigger brand since you will be able to find the same set of services and features for much less. When you are shopping around and trying out various data rooms, you will be able to decide for yourself if the features they are offering are truly worth the price or whether it is simply price gouging.
- If you have not used a data room before, you will likely need help from customer support at some point. However, if you would like to receive assistance over the phone from a human being instead of a machine, this will cost you extra. Some of the basic pricing plans out there might give you access to live support, but only during regular business hours. However, the provider’s customer service team might be located in a completely different time zone and their regular business hours will significantly differ from yours. A lot of data room providers have an online help center which you could use to find answers to some commonly encountered issues, but if you are not comfortable with searching for such information on your own, then it would be better to pay the additional costs to have the support on hand.
- Certain data rooms will offer unique features that other data rooms will not. For example, some data room providers offer an additional level of security by protecting documents against camera based attacks. There may only be one data room that offers a physical barrier between the user and the document and if having such a security feature will give you peace of mind, then it is definitely worth paying for. Additionally, any bells and whistles such as remote document shredding, mobile apps for both Android and iOS as well as other features that may not be critically important but rather would be nice to have, you will have to pay extra. Think about which features are absolutely necessary and which ones would serve as the proverbial icing on the cake and make a collective decision whether or not they are worth paying for.
Since pretty much all data room providers offer a free trial period, it is always a good idea to input some of your own data and play around inside the data room for yourself. Otherwise, you simply have to take the data room provider’s word that their features are worth paying for.