Per-page pricing pitfalls: The hidden costs of per-page pricing for virtual data rooms

Virtual data rooms (VDRs) have become essential for businesses navigating complex transactions such as mergers and acquisitions (M&A), due diligence, and corporate restructuring. Pricing strategies, however, play a key role in shaping the user experience and financial predictability of these tools.

Among the various models, per-page pricing is a relic from an earlier era of document management that persists today with notable drawbacks. It appears manageable during initial presentations but often conceals a labyrinth of hidden costs that can erode both profit margins and trust of VDR users.

This article dives into the mechanics of per-page pricing, its pitfalls, and why businesses should demand a more transparent, fixed-price model to ensure alignment with their needs and financial objectives. To learn more check our guide dedicated to virtual data room pricing offers.

What is per-page pricing for VDR customers?

Per-page pricing is a legacy pricing strategy in which costs are calculated based on the number of pages generated from uploaded data. On the surface, it seems simple: upload your files, and the system converts the data into “pages,” each billed at a predetermined rate.

However, the simplicity is deceptive, as it masks the complexities of how these pages are calculated, causing a substantial price increase. Additionally, per-page pricing can complicate the inclusion of other services, which might be more straightforward in other pricing models.

Data-to-page conversion: Not as straightforward as it seems

Data isn’t inherently formatted into pages; it is first converted into document-like formats (e.g., PDFs). For example:

• A 5MB text file may translate into 50 standard pages.
• A 5MB Excel spreadsheet, depending on formatting, may balloon to 200 pages.
• A 5MB video file could be calculated as 500 pages or more, depending on the provider’s hidden algorithms.

Different providers might handle the same job differently, leading to varying costs and quality. The discrepancies lie in how different file types are treated though. Some providers often classify media such as videos, high-resolution images, or spreadsheets as “special media,” subjecting them to exponentially higher rates than standard PDFs.

Here’s what happens in the result — a file with the same data volume will be charged differently depending on its type:

File Type	Data Volume (MB)	Estimated Pages	Cost per Page	Total Cost
Standard PDF	5	50	$0.10	$5.00
Excel Spreadsheet	5	200	$0.50	$100.00
Image File	5	300	$0.75	$225.00
Video File	5	500	$1.50	$750.00

For businesses managing diverse datasets, these costs can quickly escalate. Worse, VDR providers rarely disclose this pricing information upfront, leaving clients to learn the hard way once the bill arrives​, and therefore negatively affecting customer relationships.

A good example of how prices based on pages affect the customer base is reflected in this review from one DataSite user. They appreciate the overall usability of the service but they don’t appreciate price breaks and value for money:

Clients who are more price sensitive typically want to look for providers that offer lower-cost products and given the $/page scheme compared to other providers who charge by $/GB, they sometimes choose the lower price option. — Verified User in Financial Services, Enterprise

How are the page prices calculated?

The conversion of data into pages is neither standardized nor intuitive. Different media types — such as Excel spreadsheets, high-resolution images, and video files — are treated inconsistently, often incurring premium costs compared to standard PDFs.

Other services might be priced more transparently in different pricing models, offering businesses clearer insights into costs and potential savings.

VDR providers use proprietary algorithms to determine how many “pages” a specific file represents, but the criteria vary widely. For instance:

• PDFs: These are considered the baseline for page calculations. A simple PDF document translates directly into a corresponding number of pages, usually at the lowest cost rate.
• Excel spreadsheets: Spreadsheets pose unique challenges due to formatting, charts, and formulas. A 5MB Excel file may expand into hundreds of “pages,” particularly if it contains large datasets or embedded visuals. As a result, Excel spreadsheets often cost more money when compared with other file types.
• Images: High-resolution images are often classified as “special media,” with pricing reflecting the complexity of rendering and storage.
• Videos: Video files represent the most extreme case. A single video file might be calculated as thousands of pages, with costs ballooning due to inflated per-page rates for multimedia content.

These disparities highlight the unpredictable nature of per-page pricing, particularly for businesses handling diverse file types. Most users enter contracts with expectations based on PDFs or simple documents, only to encounter dramatically higher costs for specialized formats​.

Common pitfalls to avoid with per-page pricing

While we’ve briefly described them above, let’s take a deeper dive into the specific limitations of the per-page pricing strategy:

• Lack of transparency. One of the most pervasive issues with per-page pricing is the opacity surrounding data conversion into pages. Providers often use proprietary algorithms to make these calculations, which are not disclosed to clients. Consequently, businesses are unable to predict costs accurately during the planning phase.
  
• Hidden charges for special media. “Special media” files — spreadsheets, videos, and images — are often priced far higher than standard documents, despite many transactions requiring these formats. For instance, due diligence in M&A deals frequently involves high-resolution images of assets or complex financial models in Excel. Without explicit guidance from the provider, clients may unknowingly upload such files, only to face significant surcharges later​.
  
• Overages and non-prorated charges. Per-page models are notorious for penalizing clients when they exceed their initial data limits. Unlike usage-based models that adjust charges proportionally, per-page pricing applies full surcharges without proration, effectively doubling or tripling costs. For extended deal timelines, clients often face additional continuation charges, which are also non-prorated.
  
• Undervaluation of creative work. Per-page pricing models often undervalue creative work, as they fail to account for the effort and ideas behind the work. This can mislead clients into thinking that the value of creative services is tied solely to the number of pages, rather than the quality and efficiency of the work produced.

Financial risks associated with per-page pricing

Essentially, there are two types of risks that occur when working with per-page pricing.

Different providers might handle the same job differently, leading to varying financial risks. For instance, designers with varying experience levels and hourly rates can produce vastly different results in terms of both time spent and quality delivered. This means that the project’s value should not be judged solely on the time taken to complete it, but rather on the effectiveness and expertise provided.

Time overages: Paying for delays

Business transactions, particularly M&A, rarely proceed as planned. Deadlines get extended due to regulatory hurdles or last-minute negotiations. In a per-page pricing model, every additional day or week incurs charges, often calculated as a lump sum rather than prorated for the actual overage period. 

For example, an extension of two weeks might result in a charge equivalent to an entire additional month if an hourly rate is used to calculate the total price.

Data overages: Volume-based penalties

The rigid thresholds in per-page pricing models mean that exceeding a data cap by even a small amount can trigger disproportionately high penalties. 

A company that initially uploaded 10GB of data but later increased to 11GB could face surcharges that significantly exceed the incremental cost of that additional data. If the company surpasses the time allocated to their work with a data room, hourly rates apply and add up to the base price.

As a result, each new page not included in the initial pricing plan is now counted as a separate line item, the price for which may be influenced by how many hours were spent uploading the documents.

This rigidity disproportionately affects high-data environments such as healthcare, legal discovery, and financial audits​ — while representatives of these industries specifically are the most regular customers of data rooms.

When financial and data overages combine

When time and data overages occur simultaneously, the financial consequences compound, therefore costing more money and pricing problems than initially planned. 

Here’s a good example:

Scenario	Base cost	Data overages	Time overages/ Daily or hourly rate	Total cost
Initial Plan	$2,000	$0	$0	$2,000
Data Overages (+2GB)	$2,000	$1,500	$0	$3,500
Time Overages (+3 weeks)	$2,000	$1,500	$1,000	$4,500

This scenario illustrates how businesses can easily exceed their budgets, often paying 2-5 times more than anticipated​.

What should a transparent pricing structure look like?

Unlike the antiquated per-page model, truly transparent pricing should align with a customer’s actual data usage, ensuring fairness, and eliminating unwelcome surprises.

Usage-based flat-fee or tiered pricing, where costs are measured in megabytes (MBs) or gigabytes (GBs), offers a modern solution that provides clarity and predictability.

Comparing per-page pricing with usage-based pricing

Per-page pricing relies on arbitrary conversions of data into “pages,” introducing complexities and hidden costs. While for virtual data rooms, per-page pricing is a viable business model that allows increasing their profit margins, it doesn’t necessarily increase sales or create more value for potential customers.

By contrast, usage-based pricing directly links the cost to measurable units of data, providing full transparency and control over how the money is spent. Additionally, other services might be more straightforwardly priced in usage-based models, making it easier to present these offerings in proposals and upsell to customers.

Key differences between tiered pricing models

Aspect	Per-page pricing	Usage-based pricing
Calculation method	Data converted into pages using proprietary methods, often undisclosed.	Costs-based on actual data uploaded (in MB/GB), ensuring clarity.
File type treatment	Special media (e.g., videos, images, spreadsheets) incurs unpredictable surcharges.	All file types are treated equally, with costs tied to size, not type.
Overage handling	Flat, non-prorated penalties for exceeding data/time limits.	Pro-rated adjustments based on incremental usage or time.
Transparency	Lacks real-time tracking, making it difficult to anticipate final costs.	Includes real-time dashboards and clear upfront rates.
Customer impact	Risk of inflated bills and strained budgets.	Predictable costs aligned with actual needs.

Usage-based pricing eliminates the guesswork and punitive cost structures inherent in per-page models. By charging for actual usage, customers can better predict expenses and allocate budgets accordingly.

Prorated costs

One of the most significant advantages of usage-based pricing is its fair handling of overages. Under this model, customers are charged proportionally for any additional data or time they use beyond their initial plan. This eliminates the sharp cost escalations typical of per-page pricing, where overages are treated as flat-rate penalties.

Prorated vs. flat overage costs

Scenario	Flat Overage (Per-Page)	Prorated Overage (Usage-Based)
Additional 1GB Data	$1,000	$200
Extension by 2 weeks	$1,500	$500
Total	$2,500	$700

By aligning costs with actual consumption, prorated adjustments provide businesses with financial flexibility and a more equitable billing experience. This approach is particularly valuable in industries like M&A or legal discovery, where timelines and data needs are often fluid.

The same payment after a presentation and in the bill

Consistency between the quoted price during sales presentations and the final bill is a hallmark of transparent pricing. With per-page pricing, discrepancies often arise due to the hidden complexities of page calculations, file types, and overages. Usage-based pricing eliminates this problem by maintaining a clear and consistent link between initial estimates and actual charges.

• Budget planning: Businesses can allocate resources confidently, knowing that costs will reflect usage rather than arbitrary page counts.
• Trust and credibility: Transparent pricing fosters long-term trust between VDR providers and their clients, reducing disputes over unexpected charges.
• Scalability: Organizations with evolving needs, such as startups or multinational corporations, benefit from predictable cost structures that scale with their requirements.

Providers like Ideals, Firmex, and FirmRoom emphasize predictable billing, ensuring clients avoid sticker shock when the invoice arrives. With usage-based pricing, businesses pay what they were quoted, reflecting both fairness and professionalism.

Additional tools available for VDR customers

When evaluating virtual data rooms, leveraging the right tools can empower businesses to make informed decisions about pricing structures and maximize their investment. Here are a few tools to assist decision-makers in understanding the cost benefits of modern pricing models.

Data room pricing calculator: Real-world cost comparisons

While we do not provide a dedicated pricing calculator, we aim to offer transparency by showcasing an example of the insights such a tool could deliver. 

This illustrative comparison demonstrates how modern, usage-based pricing models fare against the outdated per-page pricing structures still employed by some competitors.

A pricing calculator would typically allow users to input key details about their needs, such as:

• Data volume (in MB/GB)
• File types (PDFs, Excel files, images, videos)
• Deal duration (weeks/months)

It would then produce a detailed cost breakdown for both per-page and usage-based pricing models, enabling businesses to make informed financial decisions.

Imagine a company uploads 10GB of data, including mixed file types, for a transaction lasting 12 weeks. The table below provides a sample cost comparison based on this scenario:

Provider	Pricing Model	Data Volume	File Types	Duration	Estimated Cost*
Ideals	Usage-Based	10GB	Mixed	12 weeks	$1,380 (Starting at $460/month)
Ansarada	Per-GB	10GB	Mixed	12 weeks	$10,330 (Based on $1033/GB for 10GB)
FirmRoom	Subscription-Based	10GB	Mixed	12 weeks	$2,985 (Professional Plan: $995/month)
Datasite	Per-Page	10GB (~50,000 pages)	Mixed	12 weeks	$12,500 (Estimated $0.25 per page)
DealRoom	Subscription-Based	2GB Base Plan	Mixed	12 weeks	$3,750 (Starting at $1250/month)
FORDATA	Subscription-Based	Limited Storage	Mixed	12 weeks	$597 (Basic Plan: $199/month)

This illustrative example highlights how providers using a usage-based model, like Ideals, deliver cost savings and transparency, while per-page pricing models can lead to significantly inflated expenses due to hidden surcharges for special file types or extended timelines.

Subscription-based pricing strategies with tiered pricing structure offer a balance of transparency and flexibility to potential clients, as there is always a middle package on the price list.

Conclusion

Putting pricing at the forefront of your VDR selection is both a wise choice and a necessity.

Per-page pricing is fraught with hidden costs, lack of transparency, and financial unpredictability, making it an unsuitable choice for businesses that rely heavily on VDRs. 

By contrast, usage-based pricing models provide a fair, transparent, and predictable approach, ensuring alignment with actual resource consumption.