The Numbers Don't Lie
In 2025, SaaS pricing increased by approximately 11.4% year-over-year. That's not a typo. While the G7 consumer price index hovered around 2.3%, the software you depend on to run your business got 5x more expensive relative to everything else.
Some specific examples:
PE-owned SaaS vendors were the worst offenders, with some implementing increases as high as 900% after acquisition.
Why This Is Happening
Three forces are converging:
1. Private equity consolidation. PE firms acquire SaaS companies specifically to extract more revenue from existing customers. They cut R&D, reduce support, and raise prices. The product doesn't get better. The bill does.
2. AI surcharges. Every SaaS vendor is bolting on "AI features" and charging a premium — whether you asked for them or not. ServiceNow's AI add-on costs 30–45% on top of your existing license. Most companies use these AI features for exactly zero workflows.
3. Per-seat math at scale. The per-seat model was designed when teams were small and growing slowly. Now, a 500-person company on Salesforce Professional ($65/user/month) pays $390,000 per year. Add the top tier at $500/seat and you're looking at $3 million annually — for a CRM.
The Waste Compounds
Here's where it gets ugly: 30–53% of SaaS licenses go unused in any given month. The average organization wastes $18 million annually on software nobody opens. Companies with 100–500 employees waste approximately $915,000 per year on unused and underutilized subscriptions.
You're not just overpaying. You're overpaying for software you don't use.
What Smart Companies Are Doing
According to Retool's 2026 Build vs. Buy Report, 35% of teams have already replaced at least one SaaS tool with a custom build. And 78% plan to build more in 2026.
The math has changed. AI-assisted development has compressed build timelines by 30–55% for scoped tasks. A custom CRM that used to cost $150K and take 12 months can now be built for $30K–$60K in 4–10 weeks.
The era of accepting annual SaaS price increases as a cost of doing business is ending. The companies that act now will save millions over the next three years. The ones that don't will keep feeding the SaaS tax.
Ready to see how much you're overpaying? Get your free SaaS audit and find out exactly where your budget is bleeding.