Per-user pricing looks simple until the tool has to reach every location in the network. For example, a franchisee logs in once a month. An auditor logs in when a visit comes up. A regional supervisor opens the tool on Mondays. Yet in many per-user contracts, each of those people takes up a license for the whole month.
That is why the buying decision is not about the list value. It is about how many people need access and how often they log in. It is also about how much of the network’s activity you want on record. A model that charges per person and one that charges per action spread the cost in very different ways.
In this article you will see how the two models differ and which variables move the cost. You will also see the risks of each and when per-user pricing makes sense. At the end you will find the questions worth answering before you sign. We do not include price figures, because how the charge is calculated matters more.
How does per-user pricing differ from per-action pricing?
Per-user pricing charges for each person with access to the tool, whether they use it a little or a lot. Per-action pricing charges for what the operation does inside it, for example each form submitted. In the first, the cost follows headcount. In the second, it follows activity. Per-action pricing is a type of usage-based pricing.
Neither is better in every case. The useful question is what grows faster in your network: the number of people or the number of records. An analysis by Tomasz Tunguz (2021) proposes a similar rule. According to that analysis, usage-based charging fits when usage is intermittent. Seat-based charging, in contrast, fits when usage is constant.
The table below summarizes the differences. It describes both models in their pure form. Many vendors also combine the two, so it pays to read the terms of each proposal.
| Criterion | Per-user pricing | Per-action pricing |
|---|---|---|
| What is charged | Each person with access | Each event the vendor defines as an action |
| What makes the cost grow | More people on the roster | More recorded activity |
| Predictability | High if the roster is stable | High if the monthly volume is stable |
| A person who logs in rarely | Weighs the same as someone who logs in daily | Their cost depends on what they record, not on having access |
| Main risk | Leaving people without access or sharing accounts | Underestimating volume or peaks |
| Usually fits when | The team is small, stable and uses the tool daily | Many people use the tool a few times and the volume can be estimated |
Why does a multi-location operation change the math?
In a multi-location network, most people are not heavy users. They are franchisees, managers, occasional auditors and supervisors who visit a location a few times a month. Even so, with per-user pricing each of them weighs almost the same as someone who works in the tool all day.
Who logs in and how often
These profiles repeat in most retail and franchise networks. The frequency of each one is a general observation, not data from your network.
- Franchisee: reviews results and answers for the findings of their location. Usually logs in a few times a month.
- Location manager: completes checklists and handles findings. Logs in more often, but only for their location.
- Occasional auditor: uses the tool on visit days and almost never outside them.
- Regional supervisor: travels across several locations and works in blocks of visits.
A hypothetical example with quantities
Imagine a hypothetical network of 40 locations. In total, 200 people need access at some point in the month. Only 30 of them use the tool almost every day. The other 170 log in a few times.
With per-user pricing, all 200 accounts count equally. With per-action pricing, in contrast, the cost depends on how many records those 200 people generate in total. This is an illustrative example with no prices. Your quantities will be different, because every network is different.
Which variables move the cost in each model?
Before asking for quotes, it helps to know which number from your operation goes into each model’s calculation. Otherwise, two different proposals cannot be compared.
Variables of the per-user model
- People with access: includes those who log in rarely, because they still take up a license.
- Turnover: the arrivals and departures of managers and auditors. That is why it pays to ask how a license is reassigned.
- License types: some vendors distinguish occasional-use or read-only profiles. Others do not.
- Network growth: each new location adds people, and each person adds a license.
Variables of the per-action model
- Definition of an action: which exact event is counted and which are not.
- Visit frequency: more audits per location also mean more records.
- Records per visit: the checklist, the findings that get opened and the signatures.
- Peaks: month-end closings, campaigns, certification audits and new location openings.
- Bundle overage: how it is charged, or what is blocked, when the included amount is exceeded.
Risks of per-user pricing in a multi-location network
The main risk of per-user pricing is that the cost pushes the wrong operational decisions. To buy fewer licenses, the network limits who has access. As a result, the quality of the record drops.
- Sharing accounts. A single user per location, used by several shifts. No one answers for a record and traceability of who audited what is lost.
- Leaving people out. If the franchisee or the manager has no access, findings go back to circulating in messages and spreadsheets. Follow-up then depends on someone copying them over.
- Cost that grows with the roster. Each new location adds people, and the bill goes up even if activity per person is low.
- Idle licenses. People who left the network or who rarely log in keep taking a seat until they are removed.
- High turnover. In many retail networks, managers change often. If each change requires a process, the team tends to postpone it.
None of these risks is inevitable. They depend on the contract rules, such as the term, license reassignment and the available profiles. That is why it pays to ask about them.
Risks of per-action pricing and how to reduce them
The main risk of per-action pricing is estimating volume wrongly. If the network records more than expected, the cost rises with activity.
- What counts as an action. If the definition is vague, two vendors cannot be compared. Ask for the list of events in writing.
- Predictability. The cost is stable only if the monthly volume is. A network with a fixed audit calendar is easier to project.
- Peaks. A campaign, a certification audit or a group of new locations can concentrate records in a few weeks.
- Incentive to record less. If the team sees each record as an expense, it may postpone it. Make it clear that recording is part of the job.
There are three ways to reduce these risks. First, simulate three scenarios: a normal month, a high month and a peak month. Second, ask how the overage is billed and whether the bundle can be changed. Third, review actual consumption every quarter and adjust.
What counts as an action in DataScope?
In DataScope, an action is a unit of use that is counted when key processes are run on the platform. For example, a new form response or the handling of a finding. A signature process or an assessment response also count. This is how the pricing page defines it.
The Help Center details it in four events. They are submitting a form response and creating a ticket. Each signed document and the record of a training also count. Every time one of them occurs, one action is deducted from the plan total. In mobile forms, the action is counted when the questions are completed and sent to sync.
Paid plans include unlimited users and a monthly bundle of actions. If the bundle is exceeded, the operation continues and additional actions are charged according to the plan. The free plan has a cap of 10 users and a monthly cap of actions. Once exceeded, forms can still be completed, but new responses only become available when you upgrade the plan.
Some details are not in the public sources. For example, whether each ticket status change counts as an additional action. If that detail weighs in your calculation, ask for it in writing. The values depend on the plan and the country, so check them on the pricing page. Also, tickets are available from the Professional plan.
When does each model fit?
The model that fits is the one whose cost grows with the same thing your operation grows with. If the number of people grows, per-user pricing weighs more. If the number of records grows, per-action pricing weighs more. These are the typical cases.
When per-user pricing fits
- The team is small and stable, and barely changes during the year.
- Each person uses the tool daily and intensively, with many records per person.
- You need a fixed, simple budget that does not depend on volume.
- The volume of records per person is so high that usage-based charging would be hard to project.
When per-action pricing fits
- Many people log in a few times a month, such as franchisees, managers and occasional auditors.
- The network grows by locations and you want to give everyone access without each new user changing the bill.
- There is high turnover of managers and supervisors.
- The monthly volume can be estimated from the audit and visit calendar.
DataScope uses the per-action model, with unlimited users on paid plans. That is why it is not necessarily the simplest option for a small, stable team with very intensive daily use. In that case, it pays to simulate both models with your real quantities.
Questions a buyer should ask
These questions organize the decision. Answer them with data from your network before asking for quotes. Then use them with each vendor.
- How many people need access at some point in the month, and how many use it daily?
- How many locations do you have today and how many will you add in the next twelve months?
- How many records does each location generate per month across audits, checklists and findings?
- What is the busiest month and how much higher is it than a normal month?
- What counts as an action or as a license, and is it defined in writing?
- What happens when the bundle is exceeded or a user is added mid-cycle?
- What is the contract term and how is the plan canceled or adjusted?
- Which features come with each plan and which require upgrading?
How it looks in audits and location follow-up
Two processes concentrate usage in a retail or franchise network. The first is the franchise audit checklist, with a standard checklist. The second is the action plan that closes each finding.
Under the current definition, each audit submitted is a form response. In addition, each ticket created for a finding counts as another action. So multiply audits by locations and by visits per month, and add the findings that usually get opened. That number is your base volume.
On the people side, paid plans include unlimited users. That way, the franchisee, the manager and the auditor can each have their own user. Each user has their own credentials and can have different permissions. Also, if the location has a weak signal, the mobile app lets you complete forms offline. The information syncs when the connection returns.
A first step for this week
Build a sheet with three columns: person, frequency of use and records generated per month. Mark those who log in less than once a week. With that sheet you can simulate any per-user or per-action proposal. That way you compare the same operation under both models.
Conclusion
Per-user pricing rewards small, stable teams. Per-action pricing, in contrast, tends to fit better in networks with many occasional users. The decision depends on how many people log in, how much they record and how stable that volume is. In the next article in this series we will look at how to build a multi-location compliance dashboard.
Frequently asked questions
It depends on how many people use the tool and how often. Per-user pricing usually fits small, stable teams with daily use. Per-action pricing usually fits better when many people log in rarely. The advisable step is to simulate both models with real quantities from your operation.
It is a charging model that depends on what is done in the tool, not on how many people access it. Each vendor defines which event counts as an action. That is why it pays to ask for that definition in writing. It is also worth checking how overage is billed.
An action is a unit of use counted when key processes are run. For example, submitting a form response or creating a ticket. A signed document and the record of a training also count. Each event deducts one action from the plan total.
Not on paid plans, which include unlimited users. Charging is based on a monthly bundle of actions and additional actions according to the plan. The free plan has a cap of 10 users. Check the current values on the pricing page.
On paid plans, the operation continues and each additional action is charged according to the plan. On the free plan, forms can still be completed. However, new responses only become available when you upgrade the plan. It pays to ask how overage is billed before you sign.
Do not compare list values. Simulate the same operation in both proposals, with the people who log in, the records per month and a peak month. Ask in writing what counts as an action or a license. Then compare the total cost over a year with your own data.
