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Why Per-User Pricing Is Killing Your Team's Budget

January 11, 20265 min read

If you've ever hesitated to add someone to your project management tool because of the cost, you've experienced the fundamental problem with per-user pricing.

The Hidden Tax on Collaboration

Per-user pricing seems fair at first glance. Pay for what you use, right? But in practice, it creates a tax on collaboration that compounds in subtle, damaging ways.

Consider these common scenarios:

  • The contractor question: Do we add them for this 2-week project?
  • The intern dilemma: They're only here for the summer...
  • The client access debate: Should we really pay for read-only access?
  • The part-timer problem: They only use it twice a week.

Each of these decisions creates friction. And friction slows teams down.

What Gets Excluded

When adding people costs money, teams inevitably leave people out. The results are predictable:

  • Shadow systems emerge. People create side channels in Slack, email, or free tools.
  • Information silos form. Not everyone has the full picture.
  • Context gets lost. Key decisions happen outside the official record.
  • Onboarding suffers. New hires don't get added until "necessary."

The Math Problem

Let's look at real numbers. A typical project management tool charges -15 per user per month.

Team SizeMonthly Cost (@/user)Annual Cost
5 users
10 users,320
25 users,300
50 users,600

Every hire, every contractor, every stakeholder increases the bill. Budget planning becomes a spreadsheet exercise where tool costs scale linearly with headcount.

The Alternative: Flat Pricing

Flat pricing flips the model. Instead of paying per person, you pay one price for unlimited users.

Basecamp pioneered this approach. At /month for unlimited users, they removed the mental overhead of "should we add this person?" The answer is always yes.

The benefits are immediate:

  • Include everyone. Team members, contractors, clients, stakeholders.
  • Predictable budgets. Your cost doesn't change when you hire.
  • No approval friction. Add people instantly without budget discussions.
  • Better collaboration. When everyone's in, context is shared.

Why More Tools Don't Do This

Per-user pricing maximizes revenue from large organizations. Enterprise customers with thousands of users generate significant ARR with seat-based models.

But for small and medium teams - the vast majority of software users - per-user pricing is friction that hurts more than it helps.

What We Do Differently

At Thicket, we charge /month for unlimited users. Same philosophy as Basecamp, but at a price point that works for smaller teams.

Add your whole team. Add contractors. Add clients. Your bill stays at .

Because tools should bring teams together, not price them apart.

Ready to stop paying per user?

Try Thicket free for 14 days. /month for unlimited team members.

Start Free Trial