Per-seat pricing
Also called Per-user pricing
Per-seat pricing charges a fixed fee for each user or licence, so the bill grows with headcount.
Why it matters to a budget owner
Per-seat pricing is predictable month to month and drifts upward as teams grow. Seats for people who left are a common source of waste.
Check whether you can reduce seats at renewal or only add them, and whether adding seats mid-term triggers a true-up.
What to record
- Price per seat
- Committed seat count
- Whether seats can go down at renewal
Frequently asked questions
Is per-seat pricing fixed or variable spend?
Variable: it changes with the number of seats. The committed seat count is the forecastable floor.
General working knowledge about commercial contracts, not legal advice. Your own agreement governs.
Glossary
Look up related terms
- Usage-based pricingUsage-based pricing charges for what you consume, such as API calls, storage or compute hours, so the bill moves with usage.
- True-upA true-up is a periodic payment that settles the difference between what you committed to and what you actually used.