Google announced a price increase for Google Workspace services.
The official announcement can be consulted here: Pricing updates and more flexible payment options for Google Workspace
Given the change announced by Google, we are also forced to update the prices of certain Google Workspace licenses that can be purchased through us.
How much do prices go up?
According to Google’s announcement, the increase has two components:
1. For all Google Workspace customers
An 11% increase for prices in Euro, from 11 April 2023 to reflect the USD/EUR exchange rate difference. Even with this increase, the price in EURO is more convenient than the price in USD if we take into account, for example, today’s BNR exchange rate.
2. For Google Workspace customers with flexible plans and more than 10 users
An additional 20% price increase. Google presented in the announcement that it has added hundreds of improvements to the Google Workspace suite and thus justifies the price increase. The 20% increase only applies to flexible subscriptions, it does not apply to annual contracts. Furthermore, customers who already use Workspace and have 10 or fewer users have a waiver of this 20% increase until January 1, 2024 – details below (while the 11% increase due to currency differences applies all customers).
The new Google Workspace prices
The new prices per Google Workspace user per month starting April 11, 2023:
|Google Workspace Plan||Monthly subscription price (Flexible)||Yearly commitment price|
*Customers who already use Google Workspace and have 10 users or fewer have a markup waiver until January 1, 2024 as follows (less the markup due to currency differences).
|Google Workspace Plan||Monthly subscription price (Flexible)|
|Business Starter||5.75 €|
|Business Standard||11.5 €|
|Business Plus||17.25 €|
From January 1st, 2024, the prices in table 1 apply to all customers.
What can you do to reduce the impact of these price increases?
With a flexible monthly subscription, the advantage is that you can always add or reduce the number of users, the price being calculated proportionally to the number of days of use of the service for each user. The downside is that the price for the flexible monthly subscription is 20% higher than the price for an annual contract.
With an annual contract you can reduce the cost with the Google Workspace service.
What you need to know about Google Workspace annual contracts:
- The number of users you pay for cannot be decreased, it can only be increased. For example, if at the beginning of the contract you have 10 users, and later you add 2 (having 12 users in total), you cannot reduce the number of users below 12 until the end of the contract. You will only be able to reduce the number of users you pay for after the lease the contractual period.
- If you cancel the Google Workspace service during the contract period, you must pay for the remaining period until the end of the contract.
Thus, the annual contract is recommended for companies that have a continuous increase in the number of users.