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Posted by u/cluo21 2 years ago
Show HN: We built PriceLevel to find out what companies pay for SaaSpricelevel.com/...
Hey HN! Christine and Steven here. As a PM and engineer, we’ve both evaluated and purchased a lot of software. One of the biggest frustrations was figuring out how much it would cost us without having to go through the sales process. When we did have a quote, we had no idea if we were getting a good deal or ripped off.

We built a site where you can see what other companies are actually paying for SaaS and enterprise software. Buyers contribute prices via quotes, pricing proposals, and other documentation to ensure quality.

We unlocked Talkdesk for Show HN users so that you can use the product without needing to sign in or upgrade. Check it out at https://www.pricelevel.com/showhn. Would love to hear any feedback, thank you!

passwordoops · 2 years ago
Love this! As a consumer, there's nothing like open pricing.

However, as a provider I can totally see a situation where I (proverbially, I'm not in this business) sue you for disclosing what amounts to a trade secret (depending on what's in the fine print) and compel you to give up all documents so I can go after my loose-lipped client too.

I hope you've got your legal bases covered

mox1 · 2 years ago
Just to let you know this kind of pricing information is available and given out during F500 SaaS deals.

Our microsoft reseller was using pricing and contract info on a deal he closed last week to assure us he would and could get us a similar deal.

Gartner will literally cutthtoat re-negotiate any large contract you have, using pricing data they have gathered from their members.

Call them up tomorrow, tell them your current cost for Splunk, they will tell you exactly how much you can save.

So this type of thing is not illegal and not even frowned upon for the big players.

jpgvm · 2 years ago
Once you are big enough to have a procurement department this isn't just not frowned upon it's expected and very much "part of the game".

I personally hate it but it's just how the game is played and it's why all enterprise software has stupidly high advertised prices so they can give "90% discounts" and let people think that is a good deal when it is ultimately just the real price that all the big players are getting anyway.

vasco · 2 years ago
My practical experience with vendor negotiations is you ask for a discount and talk to them honestly and make the sales person have a good time with you and you don't need to play hardball, say you have some secret information or other crap. I have seen many contracts negotiated by a regular engineering manager and by "proper" procurement people, and the outcome is clear that hardball negotiations end up in worse outcomes than just being a nice person and speaking plainly.
matt-p · 2 years ago
There's a difference between 'a company negotiates on behalf of a number of clients and individuals happen to get a feeling for ballpark figures' verses publishing the exact figures of every deal on the internet.
mickael-kerjean · 2 years ago
Loving this as well from the point of view of a small saas provider who has no idea what typical enterprise contract runs for.
uoaei · 2 years ago
Is there precedent that points in either direction that pricing details are considered a trade secret (or whatever the legally enforceable version of that is)?
tyingq · 2 years ago
There's precedent that points in both directions. There was a fair amount of research when there was a push for transparency in hospital pricing for services in the US. One piece of research: https://portal.ct.gov/-/media/OHS/Healthcare-Cabinet/2021-Me...

You'll see there's some cited court cases that supported pricing as a trade secret, and some that held it was not.

It seems to be still pretty muddy legally.

staticautomatic · 2 years ago
Sure. Broadly, a trade secret under state and federal law is "information that derives independent economic value from not being generally known to the public or people who can obtain economic value from it and is the subject of efforts to maintain its secrecy that are reasonable under the circumstances." Price lists could clearly fall under this definition, and they do! Here's an 8th circuit case where the plaintiff "adequately allege[d] that the information that was purportedly misappropriated— ... pricing information ... qualifies as trade secret[]." Ahern Rentals, 59 F.4th 948 (2023).
passwordoops · 2 years ago
I've signed and written quotes that have those provisions. What the legal standing is, I can't comment on because it never came to that.

This is with the obvious caveat that public tenders are the exception, but only after it's awarded

instagib · 2 years ago
Most of the quotes I get have clauses about not disclosing them to others. Prices may be okay but the entire quote can include drawings, specific item information, etc.

I had to get a lot of quotes and talking to legal is painful.

rmbyrro · 2 years ago
Price being a trade secret and legal fears for telling people a price number shows how far we are from a free market society.

This is ridiculous.

If there's one piece of information that is public by nature in a free market is price, folks.

We should bash on any business that tries to manipulate the legal system to destroy price publicity. They should be the ones in fear.

lotsofpulp · 2 years ago
> If there's one piece of information that is public by nature in a free market is price, folks.

The whole concept of a market does not work without price transparency. The more price transparency, the more efficient the market.

adql · 2 years ago
> However, as a provider I can totally see a situation where I (proverbially, I'm not in this business) sue you for disclosing what amounts to a trade secret (depending on what's in the fine print) and compel you to give up all documents so I can go after my loose-lipped client too.

I don't see this holding in court aside from the company needing to remove that info from the site.

You are not beholden to NDA you have not signed, and it woudld be employee that shared it breaking any agreements, not the company that then shared it.

blackeyeblitzar · 2 years ago
I’m not sure you can sue to block price signals and that seems blatantly anti competitive. Also other services provide this type of intelligence already, like Vendr, Sastrify, Torii, etc.
pc86 · 2 years ago
There is no scenario where pricing information can legitimately be described as a trade secret.

Sure you may be able to find some unscrupulous attorney who will make the argument that you charging $5 for one thing and $6 for another is somehow a "trade secret" so they can keep on billing, but that's only "legitimate" in the sense that a dictator is legitimate because they hold power. Price transparency and discoverability is a bedrock tenant of free market capitalism and any market to the contrary should be viewed as a direct attack on the free market. It's about as un-American a thing as you can get.

burnte · 2 years ago
Prices aren't trade secrets.
spxneo · 2 years ago
prices aren't a trade secret and difficult to enforce even if its covered under an NDA
staticautomatic · 2 years ago
They totally can be. There's plenty of case law on it.

Source: I'm a 3L about to graduate with an IP specialization and got an award for being the best student in my trade secret law class.

passwordoops · 2 years ago
"prices aren't a trade secret"

Is there a basis for this in recent case law? And how difficult would it be to enforce against a 3rd party actively publishing pricing, and therefore competitive, strategy?

Nope I'm not staying they should shut down or they will get sued, but they should do the sensible thing and talk to a good lawyer

unstatusthequo · 2 years ago
Pricing isn’t a trade secret.
passwordoops · 2 years ago
Best you consult a lawyer on the subject first. Trade secrets can certainly include "Pricing strategies and information" (1)

(1) https://www.lplegal.com/content/what-are-trade-secrets-and-h...

nosefurhairdo · 2 years ago
I'm not a lawyer, but it seems possible that an enterprise software licensing agreement could contain a non-disclosure agreement or confidentiality clause.

Not making a value judgement and happy to be corrected if this is not a thing.

RowanH · 2 years ago
I can totally see some uninformed staff member contributing what they're paying for things, and landing their employer in deep, deep, trouble with their suppliers.

I've found in competitive price analysis there's some companies that do very, very, well at hiding their pricing. If they've worked that hard, that long, to protect/hide pricing they're not going to take it lying down.

a13n · 2 years ago
As a buyer, it's definitely nice to have more data on this. Pricing can be very opaque and sometimes I just want to know the ballpark to know if it's even worth exploring. Annoying to spend 30 minutes on a call to get that when you could have it in 2 seconds.

As an operator, I know a lot of SaaS agreements include language saying the customer will protect the vendor's confidential data including information about pricing. I doubt it's legal in the majority of the time for buyers to share this data. And if the buyer is sharing confidential data with you, you're likely taking on risk by sharing it publicly, even in aggregate form.

You could add something saying that the buyer agrees that they have the legal rights to share the information with you, to protect yourself. But at some point you should know that the majority of the time, even if that box is checked, they don't.

amelius · 2 years ago
The buyer is already sharing that information with their bank, so the confidentiality is already broken :)
e12e · 2 years ago
Isn't this like saying that if you fulfill your prescription at a pharmacy, your medical data is open?
toomuchtodo · 2 years ago
Banks with business accounts is who this company should partner with. Sidesteps any contractual remedies a seller might attempt. Opt in of course for the customer.
esafak · 2 years ago
I think you should fuzz the prices and other specifics like the number of seats a bit for privacy.

For even more privacy you could show faceted aggregates with error bars instead of individual accounts once your samples are big enough.

cluo21 · 2 years ago
That's a fair point. Just to make sure I understand, when you say fuzz - do you mean round up or down so it's a nice whole number?
bigiain · 2 years ago
I'd round it to probably just 2 significant digits.

I don't care if it's $91,132 or $90,725 or $91,412 - all of those are effectively the same as $91k (unless I'm the vendor trying to work out who's leaking my pricing).

What I'm looking for as a potential new customer is to see if it's going toi cost me ~200k or ~90k or ~10k or ~3k.

esafak · 2 years ago
I would show an interval that's within 5% or whatever, but use the same intervals for all accounts otherwise people will be able to deduce the original number by calculating the midpoint :)
red-iron-pine · 2 years ago
to the nearest thousand or hundred.

731 seats @ $77492.32 could be ~700-750 seats at ~$75k-$80k and that's still a useful guide for me.

A lot of estimations are done with "t-shirt sizes", and just knowing a rough range with a rough margin of error makes things so much easier. I'll let my procurement team fight for the $3k or 31 user difference, and do the back and forth with quotes, but I can run w/ those broad numbers right now

ziziyO · 2 years ago
Submitting fake overpriced quotes for my competitor’s products
e12e · 2 years ago
Ah, clever. Committing document fraud?

> Buyers contribute prices via quotes, pricing proposals, and other documentation to ensure quality.

hipadev23 · 2 years ago
> Committing document fraud

Stop using words that makes it sounds like a crime. It’s a survey. Nobody is under any legal requirement to provide correct info.

kaptainscarlet · 2 years ago
Not really. It's a sarcastic comment to highlight a potential loophole.
a5seo · 2 years ago
Really great job. Whether it’s legal for customers to share this info or not is really a gray area.

If the data is only shared in an aggregate fashion, I doubt they can do much without a subpoena. And then what? Sue the website? Sorry, no. Section 230.

John Doe suits against anonymous customers?

Nothing requires PriceLevel to retain the PII of users… they can capture the data, validate, and flush the PII. “Sorry, we have no information about the contributor of this data.”

My sense is this will be the primary innovation of this service— how to get this info and keep it useful to end users without very much ability to vet it. Worth the effort.

bigiain · 2 years ago
> John Doe suits against anonymous customers?

How many TalkDesk customers do you suppose there are paying $91,132 for 62 users?

I'd guess TalkDesk know exactly who that is.

(I doubt that makes it any easier to prevail if they try to sue them, but I wouldn't want to be the customer negotiating next years contract wit them.

"Hi, it's TalkDesk account management here. Just letting you know your contract expires at the end of next month. Here's a new contract for the following 12 months, with the special for you pricing of $425,762 for your 62 seats. Hope to hear from you soon, and have a nice day!"

sublimefire · 2 years ago
The advice I had related to pricing which captures the gist. If the website does not show prices and asks you to call then expect to pay at least a five figured sum.
calderwoodra · 2 years ago
Yep, that's because it wouldn't be economical for the company to have a sales team and require a demo call if the contract is anything less.
styren · 2 years ago
monthly or annually?
codegeek · 2 years ago
Annually to start with because most prices are quoted annually for mid to enterprise size deals.
red-iron-pine · 2 years ago
yes
Scorpiion · 2 years ago
Looks like a nice service, it also sounds like something the SaaS companies who's pricing information you are showing would not like.

I'm curious how you look at that? Are there any legal risks for end users to share this type of information via your site? I'm thinking if the SaaS providers have some legal statements about not sharing prices (similar to how certain database providers don't allow sharing of database benchmarks).

cluo21 · 2 years ago
Buyer anonymity is mission critical for us and we've taken some steps to do that like generalizing company size and industry. There's been some great feedback in this thread (thanks everybody!) about additional fuzzing we can do to protect our buyers that we'll implement.

While there may be some SaaS companies who don't like this level of transparency, we hope this actually leads to a faster sales cycle because buyers have pre-qualified themselves.

lvspiff · 2 years ago
> we hope this actually leads to a faster sales cycle because buyers have pre-qualified themselves.

But by obfuscating their pricing they are able to create a marketing "lead" when you contact them that will one day evolve into a client and therefor its better for them to "pre-qualify" you.

I personally hate this model as it drives me absolutely insane to spend a month of going back and forth with a vendor, going over what i'd like to do and why, investing time in understanding their stack and product, only to find out its 2x my budget or something like they wont even consider me since its less than 10k. If you hide your pricing, make me go through an extensive process, and I let you know im trying to implement a PoC or a small entry level and you come at me with $1k/month I'm likely going to walk away and be frustrated enough to not want to do business with you ever. You've created more of a negative experience that i will tell others about than a "lead". Yet this goes against every companies thinking (even my won) so it must work on someone.

bigiain · 2 years ago
Maybe you've done this already, but from here it looks like you're publishing 5 or 6 significant digits of someone's pricing. I know if you did that with my companies product, we'd be able to identify a customer with very very high accuracy from that.

Unless "$91,132" is an indicative but somewhat randomised number, I'd strongly suggest listing that as "$91k" to reduce the information leakage about which customer gave you that number. (Same with the number of seats, although it looks like there's less entropy in this numbers at a quick glance.)

tomrod · 2 years ago
Price per what unit? For example, checked out Hubspot, the price could be monthly but it's not clear to me.
astrodust · 2 years ago
I'd assume monthly but I'd rather not have to assume.
deathanatos · 2 years ago
And I'd've assumed $/yr. Otherwise … $1M/y for Slack? I figure that's probably too high … or someone is getting fleeced.

But yeah, the number of times I've seen management spreadsheets doing math on "$" where "$" is a weakly-typed mix of $/mo & $/yr, and then the "result" used to "justify" decisions…