The subscription-based pricing model for SaaS has become the industry standard. When signing up, customers choose a plan that suits their requirements and budget at the time of purchase.
SaaS companies typically structure their plans so that prices increase with the addition of extra features, more users, or higher transaction volumes.
This tiered approach is straightforward when dealing with features or users. If a customer wants to add a fourth user to a platform, they can assess the value and choose to pay for the next pricing tier.
The challenge arises with usage-based pricing.
If usage exceeds the plan’s limits, there are typically two approaches:
- The service stops working, or
- There is a surcharge for the extra usage.
Stopping might be acceptable in some cases. For example, if a business is sending a bulk email newsletter to thousands of contacts and hits the sending limit, some emails simply won’t be sent.
Why This Matters for Document Generation SaaS
Document generation is nearly always a business-critical function.
In automated systems, exceeding quotas can happen quickly, sometimes increasing usage tenfold. Overage fees can accumulate rapidly, and having the service stop unexpectedly is not an option.
At Docmosis, we came up with a third approach. We understand that occasionally a customer’s document generation output may exceed normal expectations; business is unpredictable, and the service must remain reliable even if there is a sudden increase in usage.
When a customer exceeds their chosen quota, the service continues functioning seamlessly—no interruptions, no watermarked documents, and no overage fees.
The benefit to Docmosis is that this approach gives us the opportunity to have a conversation with our customers to understand whether it was a one-off event or if they expect higher usage to continue.
Docmosis’ approach balances reliability with fairness, offering peace of mind that the service will always work while keeping costs predictable.
Perhaps it’s a model other SaaS providers, particularly those with usage-based pricing, should consider. We have found that it only strengthens customer relationships.
