2026 Update
SaaS prices rose 15-25% in 2025, with per-seat pricing becoming the new "growth tax." Meanwhile, AI-augmented development has dropped build costs 40%. The rent vs. own math has fundamentally shifted.
Key Insight
The SaaS Trap: It starts small. A $29/month tool here, a $99/month seat there. Fast forward three years, and your "lean" startup is burning $15K/month on software rental fees. This is the compounding tax that eats your margins.
The Logic of Renting vs. Owning
In the physical world, businesses understand that eventually, you buy your building. In the digital world, we've been conditioned to rent forever. Why? Because "building software is hard."
That was true in 2015. In 2026, building software is faster, cheaper, and more reliable. The calculus has flipped.
| Model | Year One | Year Three | Year Five | What You Own |
|---|---|---|---|---|
| SaaS | $50K | $150K+ | $300K+ | Nothing |
| Custom Build | $60K | $65K | $70K | Full IP |
| Hybrid | $40K | $100K | $180K | Partial IP |
The Hidden Tax of "Per Seat"
The most insidious part of the SaaS model is "Per Seat" pricing. It's a success tax. As you grow, your costs scale linearly (or exponentially).
""We love SaaS businesses because the revenue is perpetual. As a customer, that's exactly why you should hate it."
"
The SaaS Audit: What You'll Find
When companies first audit their SaaS spend, they're always shocked. Here's what a typical 50-person company discovers:
Zombie Subscriptions: Tools no one has logged into for 6+ months, still charging $500/month. The person who signed up left the company two years ago.
Seat Overage: Paying for 50 seats when only 35 people use the tool regularly. The other 15 are "just in case" access that never gets used.
Feature Duplication: Three different tools that all do file sharing. Two project management systems running in parallel. A CRM and a "mini-CRM" someone built in Notion.
API Tax: Paying premium tiers just to access the API you need to integrate with other tools. The core feature you actually use is available on the cheap tier.
Support Ransom: Locked into expensive tiers because that's the only way to get phone support or a dedicated account manager.
One of our clients found $18K/month in waste during their first audit—$216K/year bleeding out through unused subscriptions and redundant tools.
The 90-Day Consolidation Plan
You can't cut all SaaS overnight. The smart approach:
Month 1: Audit everything. Cancel the obvious zombies. Downgrade seats you're not using.
Month 2: Identify the 2-3 highest-cost tools that could be built custom. Get blueprints.
Month 3: Start the build on your highest-ROI replacement. Run in parallel.
The Custom Advantage
Building your own tools—specifically your core operational tools—gives you three unbeatable advantages:
Cost Certitude
A custom app has a fixed build cost and negligible maintenance. No 'upgrade to Enterprise tier' surprise when you hire your 100th employee.
Data Sovereignty
Your data lives in your database, not in a siloed vendor cloud that charges API fees to access it.
Competitive Moat
Custom tools become IP assets that increase company valuation. SaaS fees are operational expenses that decrease EBITDA.
When to Build vs. Rent
Verification Checklist
- Your SaaS spend exceeds >$10K/month across all tools
- You're paying for features you don't use (>30% seat waste)
- Your core workflow is blocked by SaaS limitations
- Per-seat pricing is scaling faster than your revenue
- You're planning an exit and need to show IP assets
- Vendor roadmaps are diverging from your needs
- You've been 'waiting for that feature' for 12+ months
- Your data export options are limited or non-existent
Stop the Bleed. Build the Asset.
Audit your bank statement. If you're renting your core competency, you're bleeding equity. Start with a Technical Blueprint to identify which tools should be owned vs. rented.
