As a B2B procurement consultant, I have analyzed Vercel’s pricing structure to provide you with a detailed breakdown of the costs involved. In this article, we will delve into the official tiers, hidden costs, and compare Vercel’s pricing with its competitors.

The Official Tiers (Simplified)

The “Hidden” Costs They Don’t Mention

• Seat Costs: Vercel’s pricing is not based on the number of users, but rather on the usage of its services. This means that you won’t have to pay extra for adding more team members.
• Add-ons: Vercel offers API access and SSO (Single Sign-On) as part of its Pro plan. However, if you’re on the Free or Starter plan, you’ll need to pay an additional $10 per month for API access.
• Overage Fees: If you exceed the bandwidth or request limits on your plan, Vercel will charge you $0.05 per GB of bandwidth and $0.0005 per request. It’s essential to note that serverless execution time can significantly impact your costs. For example, if your application requires 100,000 serverless function executions per month, you’ll be charged an additional $5. However, if you were to use EC2 reserved instances, you could reduce your costs by up to 50% by committing to a one-year term.

Comparison: Is it Worth It?

• vs Competitor A (Netlify): Netlify’s pricing starts at $19 per month for its Starter plan, which includes 100 GB of bandwidth and 100,000 requests. While Netlify is cheaper than Vercel, it lacks some of the advanced features offered by Vercel, such as serverless functions and edge computing.
• vs Competitor B (AWS Amplify): AWS Amplify’s pricing starts at $0.004 per request for its API Gateway service. However, this price does not include the cost of hosting your application, which can add up quickly. Vercel’s Pro plan, on the other hand, includes 1 TB of bandwidth and 10,000,000 requests, making it a more cost-effective option for large businesses.

Strategic Recommendation

• Buy the Pro plan if: You need advanced features like serverless functions, edge computing, and SSO. The Pro plan is also the best option if you expect high traffic volumes or require a large amount of bandwidth.
• Stay on Free if: You have less than 10,000 monthly requests and don’t require advanced features. The Free plan is an excellent option for small projects or testing purposes.
• Negotiation Tip: If you’re an enterprise customer, you can negotiate a custom plan with Vercel. Be sure to emphasize your expected usage and requirements to get the best possible price. You can also ask about discounts for long-term commitments or bulk purchases.

FAQ

Q: Is there a startup discount? A: Yes, Vercel offers a 50% discount for startups that are less than two years old and have less than $1 million in annual revenue.

Q: Can I cancel anytime? A: Yes, you can cancel your Vercel subscription at any time. However, if you’re on an annual plan, you’ll need to pay the remaining balance for the year. It’s essential to review Vercel’s contract terms before signing up to ensure you understand the cancellation policy.

📚 Continue Learning

Check out our guides on Vercel and AWS.