During Odoo Experience 2022, we simplified Odoo's pricing structure, making it even more valuable, affordable, and simpler than ever! Updating our pricing was a "risky" move for our company, but a sensible one. Here is the rationale behind this.
Why did we update our pricing?
Our mission is to provide companies with easy access to the software they need to run and expand their business. Our dream is to make digitalization accessible to everyone, including small companies with a limited budget.
With each version of Odoo, we continue to make our suite of business applications stronger, smarter, and faster, with plenty of new apps, features, improved services, and learning materials. There was still one major feature we needed to update to make our dream come true: the pricing.
What is optimal pricing?
Optimal pricing should align with the value a customer gets from a product. Considering that, Odoo was actually less valuable for a single user than for a larger company with more complex needs and hundreds or thousands of users.
A smaller company can afford to manage most of its business with less data organization and multiple non-integrated applications. On the other hand, a larger company can't sustain its growth - or survive - without digital optimization and seamless app integration. Therefore, an optimal pricing strategy would consist of adjusting the price level according to the number of users a company has.
However, Odoo's previous pricing structure used to be the opposite. In addition to a price per user, there was also a price per application installed on the database.
In Europe, for example, single-user companies had an average monthly price of €96. Whereas 100-user companies had their price per application divided by the number of users: their average monthly price per user was €20.
It became clear that our old pricing strategy was all but optimal. Two points were obvious:
- There was a loss of customers in the 1-5 users segment.
- There was a loss of revenue with larger companies.
Such misalignment between the value of the product and the pricing called for reconsideration.
What is the perfect price?
Once we knew we had to change the pricing, a new question arose: how can we simplify the pricing even more? (Let's face it, the old pricing structure was not the easiest to understand.)
Without further ado, here is the formula for the most uncomplicated pricing possible:
Simplification = one price, all apps
That was a no-brainer, but here comes the real head-scratcher: what is the right price?
To figure that out, we decided to look at our competitors' pricing to get a better idea of Odoo’s real value, starting with Microsoft Dynamics 365, but we ran into a problem: Odoo is much more than just an ERP. It is also a solution for CRM, Point of Sale, eCommerce, eSign, HR, and much more! So we decided to add up the costs of our competitors and here is what we found.
|Microsoft Dynamics 365
|Salesforce (Sales Cloud)
|Point of Sale
|$79 /user + 3%
We haven't even listed the full scope of Odoo apps yet, and we can already see that the value of Odoo is HUGE: more than €484 /user/month (€1 is approximately worth $1 at the time of writing)! And that doesn't even include what it would cost to integrate all these competitors' apps together.
Simplifying our pricing with a single price is definitely a smart move. Still, we also wanted to make Odoo even more accessible, so we can continue to help companies of all sizes expand their business. That is why we decided to disrupt the market - once again - and cut the cost to the lowest price imaginable, far away from the €484 /user/month we calculated above:
Less than €20 /user/month to access all Odoo apps!
The new pricing plans
You are not dreaming! You can now get all Odoo apps for the price of a single app! And, of course, the new pricing plans still include unlimited support, cloud hosting on Odoo Online, and maintenance.
There are two pricing plans to cover all needs: Standard and Custom. To lower the entry barrier even more, we decided to grant a discount for the first year (or multiple years if you go for a multi-year contract).
One App Free plan
While it is not a pricing plan, per se ("free" is not a price, obviously!), the One App Free plan is a popular option. It allows its users to access one app for free on a database hosted in the cloud on Odoo Online, for an unlimited number of users, forever.
Want fully featured accounting software? It's free, for unlimited users, forever. Need a website? Or an eCommerce solution? It's free too. Need a Point of Sale for your shop? It's free too, unless you install other applications.
The Standard plan is the best option for most companies that don't need custom development. With this plan, you get a standard database hosted in the cloud on Odoo Online, and you can install all the Odoo apps you want. The pricing remains the same whether you install three apps or seventy: a price per user per month.
The Custom plan is perfect for businesses that want to manage multiple companies on a single database or that need to customize their Odoo database with Odoo Studio, custom developments (only for databases hosted on Odoo.sh or On-premise), or through the API.
What does this change for existing customers?
For most existing customers, this pricing change means a cheaper subscription and access to all Odoo apps instead of only a few. They will immediately benefit from the new pricing plan (i.e., access to all apps) and will see their price reduced at their next subscription renewal. Only good news for them, then!
"What about the customers for whom this pricing change would imply a higher price?" you may wonder. Well, it is good news for them too: they get to keep their current price!* They will see their subscription moved to the new pricing model so they can access all Odoo apps, but with a discount. That means that the cost of their subscription will not increase with the pricing change for their current number of users.
* Except for Odoo Online customers, who are charged monthly.
It doesn’t get much better than that!