Expertise · Technology and automation

Third-party SaaS costs: the often forgotten item

The package fee for building the system is just one part. The subscription software running in the long term is what truly determines the total cost.

Quick summary

Third-party SaaS costs such as Google Workspace, automation tools, or language model APIs are not included in Sinh Vũ's service package, and you pay each provider directly. The total cost of ownership is always higher than the displayed rental fee because it also includes compliance, training, and maintenance. The correct budgeting approach is to list all recurring expenses before finalizing the system, not just looking at the package fee.

Quick comparison
You should choose this direction when
  • Always list third-party costs before finalizing the system.
  • Review the rental list each quarter or at each renewal period to eliminate excess seats.
Not needed when.
  • Only look at the package setup fee, forgetting about ongoing rental costs that will continue indefinitely.
  • Choose a usage-based tool without estimating the amount used.

When you receive a quote for building a brand operation system, the figure in front of you is the studio's service fee. However, that system runs on a series of third-party subscription software, and these costs continue indefinitely, monthly or annually, beyond the package fee. Failing to list everything from the start will lead to an operational budget shortfall within the first few months.

Why is this often overlooked

The package fee for building is a one-time fee or based on phases, making it easy to see and compare. The subscription software fee (SaaS, short for Software as a Service, meaning software used online with periodic payments) is smaller for each item but adds up significantly and recurs each period. Many business owners building their operational systems for the first time only look at the studio fee, thinking that is the total cost, and are surprised when the provider sends a separate invoice in the first month of implementation.

According to operational analysis of martech from MarTech.org, the total cost of ownership is often about 1.5 to 2 times the displayed license fee, as it also includes integration, training, and maintenance. This multiplier should not be a cause for concern but rather a consideration to plan accurately from the start.

Types of costs to list

  • Fixed periodic costs: Seat fees for each user on each tool, such as Google Workspace, project management platforms, accounting software. This amount is easy to estimate because the package prices are clear.
  • Cost based on usage: The API (application programming interface, which connects software) of the language model, cloud storage services, and automated email systems. This cost fluctuates based on actual tasks and is difficult to predict in the early stages.
  • Integration and maintenance costs: When providers update systems, integration between tools may require adjustments. This is an additional cost that is often completely overlooked during initial budgeting.
  • Training costs and team time: employees need time to familiarize themselves with new tools. This cost does not appear on the invoice but has real value.

Common mistakes when budgeting

  • Only consider the package setup fee, not including ongoing rental costs later.
  • Not clearly distinguishing which costs the studio covers and which costs the client pays directly leads to misunderstandings about the scope of work.
  • To allow redundant chairs and overlapping tools to accumulate over multiple periods without anyone reviewing. This situation is called subscription sprawl: the number of tools increases, total costs rise, but the actual value used does not increase correspondingly.
  • Choose a usage-based tool without setting a spending limit in advance. The end-of-month bill can skyrocket during a major campaign or when testing new features.
Fewer discrete tools compared to a unified platform: Using many individual tools allows for selecting the best features in each area, but integration costs and the number of invoices to manage increase. Consolidating to fewer platforms reduces operational friction and connection costs, but requires each platform to be robust in multiple functions. The choice depends on team size and the willingness to manage multiple vendors simultaneously.

How to budget correctly from the start

Before finalizing the system, ask the studio or consultant to list all the tools that will be used, along with the type of costs (fixed or usage-based), payment cycles, and who will pay. This table does not need to detail every cent but must be sufficient for you to see the total periodic costs each month and year.

After implementation, review this list every quarter or at each renewal period. A simple check question: who is using this tool, how many times a week, and are there any other tools in the system doing similar work?

The true cost of an operating system is not just the fee you pay when setting it up, but the total fee you pay each year for it to continue running.

Operational principles, Sinh Vũ Studio

Sinh Vũ's viewpoint

Sinh Vũ is upfront when providing quotes: the O2 package does not include third-party SaaS costs. Google Workspace, language model APIs, automated marketing tools, those are expenses you pay directly to the respective providers. Sinh Vũ lists all expected recurring expenses in the quote document so you see the total cost clearly, without hiding anything to make the contract look cheaper.

Scope and toolkits vary for each business, so there is no fixed number that applies universally. What matters more than the number is whether you can see the complete cost picture before making a decision.

The tool brings back.

Decision checklist

Topic: Third-party SaaS costs outside the package and how to budget. Sinh Vũ guide, sinhvu.com

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Select each item you find appropriate, then print or save as PDF to take with you.

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Questions to answer before deciding

If you have marked most of the signs above, this is the time to discuss in more detail. Sinh Vũ can help you review and propose a direction.

References

MarTech.org, hidden cost of fragmented MarTech stack. MarTech.org, hidden tradeoffs of composable MarTech stack. Shopify Enterprise, SaaS sprawl guide. Sinh Vũ, O2 service profile (internal).

Frequently asked questions

Does Sinh Vũ's Package O2 include fees for Google Workspace or automation tools?

No. The O2 package includes consulting, design, and system setup fees from Sinh Vũ. Third-party subscription software like Google Workspace, automation tools, or language model APIs are paid directly to those providers. Sinh Vũ will clearly list these items in the quotation so you can see the total cost.

How to estimate API costs based on usage when the actual usage is unknown?

This is the most unpredictable type of cost because it is proportional to the level of usage. The practical way to estimate is to calculate the number of tasks run each month multiplied by the unit price per call, then add a safety margin. In the early stages, you should set a spending limit with the provider to avoid unexpected spikes in bills.

How can you tell if you are paying for too many tools with overlapping functions?

The clearest sign is when many people on the team do not use all the features of a tool but are still being paid for their seats, or when two tools are doing the same job. Sinh Vũ recommends reviewing the subscription list every quarter or at each renewal to cut unnecessary seats and tools.

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