Cut SaaS Costs
Step 1: Perform a SaaS Audit
- List all SaaS subscriptions and their monthly or annual costs.
- Identify unused or underutilized tools by asking your team for feedback or using reports from SaaS management tools.
- Categorize tools by function (e.g., communication, marketing, finance, etc.) and identify overlap between tools with similar functions.
Step 2: Cut or Downgrade Unnecessary Subscriptions
- Identify SaaS tools that are rarely used or have become redundant and cancel them.
- For tools used infrequently but still necessary, consider downgrading to lower tiers or pay-as-you-go options.
Step 3: Consolidate and Replace Redundant Tools
- If multiple tools serve the same purpose, choose one that offers the best balance between functionality and cost. Negotiate with vendors to add users or upgrade features on one platform and eliminate others.
Step 4: Review License Usage
- Check the number of active users on each platform and compare it to what you're paying for. Remove inactive users or reduce licenses as necessary to avoid overpaying for seats or licenses not in use.
Step 5: Negotiate SaaS Contracts
- Reach out to vendors and ask for discounts, especially if you’ve been a long-term customer. Mention competitor pricing or inquire about better deals for annual payments versus monthly subscriptions.
Step 6: Automate SaaS Cost Reviews
- Use SaaS management software to continuously monitor usage, renewals, and payments. Set reminders to review contracts and eliminate automatic renewals for underused tools.
