I was interested to read that famed “Shark Tank” investor and NBA Mavericks owner, Mark Cuban, invested in a company called Procurify. The press release describes the company as follows:
Procurify is a fully-featured, cloud-based procurement software solution that can be used to manage both direct and indirect company spending, while providing control and visibility of where company money is going in real-time, using simple-to-generate reports and analytics. Procurify.com is a trusted global technology brand, dedicated to simple, innovative, sustainable and cost-effective enterprise solutions.
Not exactly earth-shattering stuff. The Procurify website is beautiful, but nothing truly earth-shattering there either. The site does seem to indicate that the target client for Procurify is an SMB. The most interesting aspect of the site, however, is the transparency of the Procurify pricing model, which is prominently displayed at $45 per user per month:
I applaud this transparency and wondered when this approach might come to e-procurement, as it has to CRM, T&E, cloud storage, google apps, supplier credentialing, and many other B2B SaaS categories. There is, however, one problem–the price seems really high. Expense reporting apps start about $8 per user per month–with users submitting about 2 expense reports per month. Is procure to pay worth 6x that amount? Do Coupa, Ariba, Sciquest, etc, get $500 per year per user for procure to pay? I’m not sure, but I do not think so.
I hope I’m wrong. I really do love the simplicity and transparency which is a underestimated aspect of true SaaS offerings. I fear though that Mr. Cuban may need to do a little tweaking to this one.