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EP153 How do I manage software subscriptions and cost
Software subscriptions can quickly add up, eating into a small business’s budget. While these tools are essential for operations, marketing, finance, and customer service, managing them wisely ensures businesses only pay for what they truly need. Here’s how to keep software costs under control.
1. Audit and Consolidate Software Subscriptions
Many businesses accumulate multiple software subscriptions over time, often leading to unnecessary spending.
- List All Subscriptions – Identify every software tool the business is currently paying for, including unused or forgotten subscriptions.
- Check Usage – Evaluate how often each software is used and whether it adds value. Some tools may have overlapping features.
- Consolidate Tools – Look for all-in-one solutions that can replace multiple subscriptions. For example, some CRM tools also include email marketing, eliminating the need for separate services.
Regular audits prevent businesses from paying for redundant or unnecessary software.
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2. Choose the Right Pricing Plans
Many software providers offer different pricing tiers, and businesses often pay for more than they need.
- Opt for Annual Plans (If Beneficial) – Annual billing is usually cheaper than monthly payments, but only commit if the software is essential.
- Scale Plans Based on Usage – Some tools charge per user or per feature. Choose a plan that meets current needs without unnecessary extras.
- Leverage Free or Open-Source Alternatives – Tools like LibreOffice, Trello (free plan), or GIMP can replace paid software for some tasks.
Choosing the right pricing model prevents overspending while ensuring access to necessary features.
3. Monitor and Control Spending
Keeping software costs under control requires active monitoring.
- Use a Subscription Management Tool – Apps like Zluri, Cledara, or Subby help track, manage, and cancel software subscriptions.
- Set a Budget – Allocate a specific amount for software expenses and review it regularly.
- Assign Subscription Owners – Having a designated person responsible for software purchases prevents unnecessary sign-ups.
By monitoring spending, businesses avoid surprise charges and can adjust as needed.
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4. Negotiate with Vendors
Many software providers offer discounts or customized pricing, especially for small businesses.
- Ask for Discounts – Some vendors provide discounts for startups, non-profits, or long-term commitments.
- Bundle Services – If using multiple products from the same provider, ask about bundle pricing.
- Request Custom Plans – Businesses with specific needs may negotiate tailored plans that exclude unnecessary features.
Negotiation can lead to significant savings, especially for businesses using multiple tools from the same provider.
5. Regularly Review and Cancel Unnecessary Subscriptions
Software needs change as businesses grow, making regular reviews essential.
- Conduct Quarterly Reviews – Set a reminder to reassess software usage every three months.
- Cancel Trials and Unused Subscriptions – Many businesses forget to cancel free trials, leading to unexpected charges.
- Upgrade or Downgrade as Needed – Some tools allow businesses to switch plans based on seasonal demand or growth.
By proactively managing subscriptions, businesses ensure they only pay for what’s truly needed.
Conclusion
Managing software subscriptions effectively requires regular audits, selecting the right pricing plans, monitoring expenses, negotiating with vendors, and cancelling unused tools. By staying proactive, small businesses can optimize software spending while still accessing the tools they need for growth.
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Unlock proven techniques to expand your small business, enhance customer fit, and boost profitability. Engage in hands-on exercises and gain practical strategies in just two hours.