Team plan pricing review · 29 October 2026

Keep $12 and charge for heavy usage

Three options to restore Team gross margin, which fell from 78% to 69%

Approve Option B: keep $12 per seat and add a usage add-on above 50 GB storage or 500 AI actions per seat a month. Approval starts a 6-week billing build; the price commits only when the 30-day notice goes out.

Also compared on the same terms: A, raise the price to $15 per seat; C, change nothing and revisit in 6 months.

Source: Team plan figures; Finance; Billing; customer terms

Team margin fell 9 points, driven by storage and AI usage

Team brings in about $5.3M a year. At that revenue, each margin point is worth about $53k a year, so the 9-point fall is about $480k.

Team gross margin fell from 78% to 69%; the top 10% of workspaces drive 55% of usage costs Team gross margin 78% 69% 12 months agoNow Who drives usage costs Share of workspaces 10% Other 90% Share of usage costs Top 10%: 55% Other 90%: 45%

Source: Finance (margin, usage cost share). Revenue = 4,100 workspaces × 9 seats × $12 × 12 months.

We rank margin first, then retention, then speed

1 · Margin

−9 points

Recover gross margin. Its fall from 78% to 69% is why we are reviewing price.

2 · Retention

6% lost in 2023

Keep paying workspaces. A fix that loses customers can cost more than it recovers.

3 · Speed

~5 weeks apart

Time to effect matters least: the two price options land about 5 weeks apart.

Source: Finance; Billing; customer terms

Each option trades margin against churn risk or time

CriterionA · Raise to $15B · Usage add-onC · Wait 6 months
Change+25%, all workspacesAdd-on above usage limitsNone
1 · Margin74–75%; +$0.9–1.3M a yearTargets costly usage; least certain69% or lower
2 · Retention2023 rise lost 6% of workspaces12% pay more, 88% unchangedNo price risk
3 · SpeedAbout 5 weeksAbout 10 weeksReview in 6 months
UndoA price cut won’t win back leaversCan stop before notice, ~10 DecFully; six months lost

Source: Finance; Billing; customer terms. A’s figures are calculated on slide 5; timing on slide 7.

A adds $0.9–1.3M a year but repeats a churn bet

Annual Team revenue: $5.31M today, $6.24M at $15 if 6% of workspaces leave, $6.64M if none leave Today at $12$5.31M $15, if 6% leave$6.24M $15, if none leave$6.64M
Margin
About 74–75% if usage costs hold, recovering 6 of the 9 points.
Break-even
The rise still adds revenue unless more than 20% of seats leave.
Last time
The 2023 rise from $10 to $12 (+20%) lost 6% of workspaces in 3 months; this rise is +25%.

Source: Team plan figures; 2023 price rise. Annual revenue = workspaces × 9 seats × price × 12; leavers assumed to be average-sized.

B charges only the 12% of workspaces above usage limits

Of 4,100 Team workspaces, about 88% see no change and about 12% pay the add-on 4,100 Team workspaces About 3,610 (88%) see no change ~490 12% pay the add-on
Included per seat
50 GB storage and 500 AI actions a month. Each extra 100 actions costs $5.
Why it fits
It reaches a group close in size to the top 10% of workspaces, who drive 55% of usage costs.
Least certain
Add-on revenue depends on how far these workspaces exceed the limits, so B’s margin gain is the hardest number here.

Source: Finance (share of workspaces affected, usage cost share)

A could be live by early December, B by early January

Time to a live price: A about 5 weeks (1-week build plus 30-day notice), B about 10 weeks (6-week build plus 30-day notice), C a review in 6 months A · Raise to $15 1 wk 30-day notice Live ~5 Dec B · Usage add-on Billing build, 6 weeks 30-day notice Live ~9 Jan C · Wait No change; review at 26 weeks, late April 2027 → 024681012 weeks

Assumes approval on 29 October and notice sent once the build is finished. Notice could overlap the build only if billing is sure of its date.

Source: Billing (build times); customer terms (30 days’ notice before any price change)

Each option wins on a different criterion

A · Raise to $15

Fastest and surest: live in ~5 weeks, +$0.93M a year even if 2023’s churn repeats.

Against: repeats a bet that lost 6% of workspaces.

B · Usage add-on

Matches price to cost: charges the 12% of workspaces using most, leaves 88% unchanged.

Against: twice as slow; revenue least certain.

C · Wait

No churn risk, and six more months of usage data before deciding.

Against: margin stays at 69% or lower, ~$53k a year per point.

Source: Finance; Billing; 2023 price rise; calculations on slides 2 and 5

B gives up speed and certainty for lower churn risk

What we give up
About 5 weeks, and A’s near-certain $0.9–1.3M a year.
Best case against
Even at 2023’s churn, A recovers about 6 of 9 margin points; B may recover fewer.
How easy to undo
Until notice goes out (~10 December) we can stop, losing only the build.
What would change our mind
An add-on estimate that recovers little margin, or a longer build. A stays ready in 1 week.

Source: Finance; Billing; calculations on slide 5

Three risks, each with a way to limit it

Largest customers
Two of our five largest Team customers have asked sales about annual price locks. How we answer shapes their reaction to any option.
Billing build slips
Sending notice only after metered billing is tested means a slip delays launch rather than billing customers wrongly.
Heavy users react
The ~12% who pay more can hear from their account contact before the 30-day notice arrives.

Source: Sales; Billing; customer terms

Approve Option B and the 6-week billing build this week

This approves
Option B as our direction, and starting the metered billing build now.
This does not commit
The price, which commits only when notice goes out (~10 December).
Storage price
What should storage above 50 GB per seat cost? The notice needs a price for it.
Price locks
Should we offer the two large customers who asked an annual lock on $12 per seat? Sales needs an answer.

Sources: Team plan figures; Finance; Billing; Sales; customer terms; 2023 price rise