In case we haven’t met, my name is Claire Milligan and I serve as the General Manager of Tallie and Co-Chief Product Officer for the Certify/Chrome River family of brands. I started at the company in 2012, prior to the public launch of Tallie, and was part of the team that conceived of our active user pricing model “way back when.” Since then, we’ve learned a lot and it’s time for our pricing model to catch up. Today, we introduced a new tier-based pricing model for new customers and I’d like to take a moment to explain how and why we arrived at this new structure.
The new pricing model includes three tiers of functionality, based on integration: Basic Accounting, Cash Control and Cloud ERP. Each tier comes with a set number of included users for a base price. For every active user over the included number in any given month, a customer is charged an overage in arrears. We will continue to calculate active usage in the exact same way as before, registering a user as active once an expense has been created in their account. The full pricing breakout is presented below:
Pricing Model Confusion
At Tallie, our mantra is to make our product seamless and easy-to-use for all users, but it seems our pricing structure didn’t live up to this brand promise. Our previous model of having a $50 minimum that would be removed once an active usage rate exceeded $50 was cumbersome to explain. In speaking to clients and investors, I resorted to miming a graph with one arm as a minimum and the other arm showing increasing active usage eclipsing that minimum. When you find yourself using interpretive dance, it’s a clear indicator that you have missed the mark. Plus, you should see the crazy logic that has gone into generating a Tallie invoice. We pre-bill a minimum, then refund it, or just hold on to it, all depending on how many users were active in the month and whether there was a proration involved. Not seamless. Not easy-to-understand.
First, Analyze Impact
Knowing we wanted to simplify our pricing, we underwent extensive modeling against our current database of customers to determine how to best align price points with current scales of customers using a variety of combinations of feature sets. We were on a mission to simplify, not to ratchet up prices. We wanted to make sure there wouldn’t be a significant difference in invoice amount for a customer who bought our service a month ago as if they had bought our service today. Because the new pricing model is different, the price point for an equivalent customer is rarely identical, however. This is why we have not automatically shifted any customers to our new pricing model and have no plans to do so in the future.
We built Tallie to be an excellent solution for businesses that prefer a streamlined, simple workflow that does not require accounting expertise for effective, scalable use. As a result, our customers tend to be on the smaller end of size, having tens or hundreds of employees, rather than thousands. However, with only a $50 minimum, any business with greater than 5 employees did not have a way to predict the cost of using Tallie from month to month, a variation that swings more wildly as companies become larger. In fact, we noticed a trend of customers asking us for a higher monthly minimum in order to lock in a predictable invoice amount. We needed a model that would allow a client to expect a flat recurring monthly charge that might vary only occasionally with seasonality or company growth.
In our family of brands, Tallie is the product known for plug-and-play accounting integrations, which feature Activity-Based Sync (did you see the news that we just added NetSuite to our list!?). Our Bill.com integration can support a ‘triangle sync’ configuration that keeps QuickBooks records and Bill.com records always in sync and empowers a dynamic export configuration to both systems. Our Sage Intacct integration natively supports both shared multi-entity and distributed multi-entity environments, allowing easy attribution of expenses across entities and currencies. Our NetSuite integration is well on its way to parity with the Sage Intacct integration. We believe there is an inherent value to these integrations above and beyond our standard offerings for Xero, QuickBooks Online and QuickBooks Desktop. Additionally, the need for these higher-end integrations tends to grow with the size of customer, so the model mapped very well for our customer base.
For those of you who are already customers of Tallie, you’re welcome to opt in to the new pricing model at any time after August 1, 2019. Simply visit the Billing area of your account, within the Settings pages, to view options and convert your account. Or, stick with your current model if you prefer!
For any prospects evaluating Tallie for your own use, feel free to create a Free Trial and select the pricing plan that makes the most sense for your business when you are ready to buy (some lower-level plans may not be available, depending on the integration functionality you have activated in your trial). If your business is at an even larger scale than our current tiers, a sales expert will be happy to negotiate a custom flat rate and active user overage pricing that makes sense for you. Please keep in mind our changes will go into effect August 1, 2019.
Thank you all for many happy years together and, together with our team here at Tallie, I look forward to bringing you more simplified, innovative approaches to integrated expense software in the coming years.
General Manager, Tallie
Co-Chief Product Officer, Certify/Chrome River