Why SaaS Prices Keep Increasing – and How to Negotiate Better Deals

The Rising Cost of SaaS

Over the past few years, SaaS (Software-as-a-Service) has become the backbone of business operations. From security platforms like SentinelOne to collaboration tools like GitLab and Bitrix24, companies rely on dozens of subscriptions to stay competitive.

But there’s one big problem: prices keep going up.

According to industry reports, SaaS vendors have raised prices by 10–20% annually, and in some cases even higher. For many businesses in Cyprus and the EU, this trend is putting pressure on IT budgets.

Why SaaS Prices Keep Increasing

1. Vendor Consolidation

Large software companies acquire smaller ones, reduce competition, and raise prices.

2. Inflation & Operational Costs

Vendors pass on rising cloud hosting, support, and compliance costs to customers.

3. Feature Bundling

Some vendors push businesses into higher-tier plans, even when they don’t need all the features.

4. Regional Pricing

In the EU, companies often face higher list prices compared to the U.S., partly due to tax, compliance, and exchange rate differences.

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The Impact on Businesses

For SMEs and enterprises alike, rising SaaS costs can mean:

• Overspending on unused licenses
• Reduced ROI on digital tools
• Budget strain that limits adoption of new technologies

Without a procurement strategy, many businesses simply accept vendor increases year after year.

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How to Negotiate Better SaaS Deals

1. Benchmark Pricing

Know what other companies are paying for the same tool. Vendors are more flexible if they know you’ve done your research.

2. Consolidate Vendors

Bundle multiple solutions under one vendor or reseller to unlock discounts.

3. Review Usage Regularly

Identify unused licenses and downgrade tiers if possible.

4. Time Your Renewal

Negotiating well before contract renewal gives you leverage. Vendors are more flexible to avoid churn.

5. Work With a Reseller

Resellers like Procufly can often secure exclusive discounts, optimize contracts, and handle negotiations on your behalf.

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Why Partner With Procufly

At Procufly, we specialize in helping businesses across Cyprus and the EU:

• Analyze vendor contracts and cut unnecessary costs
• Secure better pricing and terms from SaaS providers
• Streamline procurement to save time and resources

Instead of dealing with endless vendor calls and confusing contracts, you get a trusted procurement partner to negotiate for you.

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Final Thoughts

SaaS prices will likely continue to rise — but that doesn’t mean your business has to pay more. With the right strategy and a trusted partner, you can control costs, negotiate smarter, and maximize value from your software investments.

Talk to Procufly today and start saving on your SaaS renewals.

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