What a “free plan” really means at online ordering services
Where the money sits in a free plan: percentage, card fees, minimum orders, a fee on guests, notice period, whose domain. Plus questions for the seller.
Vitrina team7 minute read
Contents
In short
A free plan usually means zero subscription, not zero cost.
The money tends to sit in the service’s percentage, card fees, minimum orders and a fee on guests.
For a small venue, a percentage model really can be better than a subscription.
Leaving has a price too: check the notice period, the domain and the data before you sign.
What does a free plan mean at an ordering service?
Most often the name means a plan with no monthly subscription. The service still runs on money: it has servers, support and people, so it earns in a different way, usually on your orders.
There is nothing wrong with that. For a venue that is just starting to sell online, a zero subscription removes the risk: few orders, small bills. It only becomes awkward when the owner learns about the other lines from the first invoice. So read the full price list and the contract, not the word “free”.
Where does the money sit in a free plan?
Here are six lines worth finding in the price list and the contract. Not every service has all of them, but each of them turns up on the market.
| Line | What it looks like | What to check |
|---|---|---|
| Service percentage | A few percent of website orders | What it is taken from: all orders or online payments only |
| Card fees | Usually 1.5-2% of an online payment, taken by the bank or payment provider | Whether they are inside the service’s percentage or on top of it |
| Minimum | A minimum number of orders or a minimum monthly payment | What happens in a weak month: a top-up, another plan or being switched off |
| Fee on guests | A small amount or percentage the guest pays on top of the order | Who turns it on, how much it is and whether the guest sees it in advance |
| Payment provider | Payments go through a provider the service chose | Whether you can connect your own bank and when the money reaches you |
| Separate services | Setup, integrations, SMS, support | What is inside the zero and what is paid for separately |
When is a percentage cheaper than a subscription?
While online orders are few, a percentage is almost always cheaper than a subscription. A few percent of a small turnover is less than a fixed amount, and in a weak month you pay less. For a small venue this model really is a good deal.
The picture changes as turnover grows. The percentage grows with sales while the subscription stays put, so at some turnover the two lines cross. Exactly where depends on your average check and on what share of guests pay online. The crossing point is easiest to work out on your own numbers.
Why is the notice period part of the price?
Leaving is not in the price list, but you pay for it. If the notice period takes several months, you pay the old service for those months even when you already work on the new one. The count sometimes starts on the first day of the next month rather than on the day of your letter, so the real period turns out longer.
A discount for paying a year or two ahead has another side as well: the price is lower, but leaving early may be impossible without paying the remainder. Compare the monthly price with the monthly price, and count the discount separately.
Whose domain and whose data will you keep?
An address on the service’s domain costs nothing, but the whole search history sits on someone else’s domain. When you leave, the links from Google and the QR codes on your tables stay there. Your own domain costs little and makes moving simple.
The same goes for guests. Ask whether you can export contacts, order history and bonus points, in what format, and whether access closes on the day you leave. If an app is published in the service’s account, find out what happens to it after the contract ends.
What should you ask the seller before signing?
Ten questions for the seller
What will I pay per month at my turnover, including the percentage and card fees?
What is your percentage taken from: all orders or online payments only?
Are card fees inside your percentage or paid on top?
Is there a minimum number of orders or a minimum payment, and what happens if I do not reach it?
Do you add a fee to the guest’s order, and can I turn it off?
Can I connect my own bank, and when does the money reach my account?
How much is setup, and what is paid for separately?
How long is the notice period, from what date is it counted, and what must stay on during it?
Whose name is the domain in, and whose account holds the app in the stores?
How and in what format do I take the menu, guests, orders and bonus points?
Ask for the answers in writing and compare services by one number: everything you will pay per month and for leaving, not just the “subscription” line.
How does this work at Vitrina?
Vitrina has no plan with no payment at all: every venue has its own server and database. We take no more than 0.9% (3% with no subscription) of orders paid online and nothing on cash, prices are published in the plans, and you pay monthly with no annual commitment. Your data stays yours: you export the menu, guests and orders yourself with a button in the admin panel, at any time and free of charge. Guest payments go straight to the venue’s account, we add no fee of our own to the guest’s order, and you pay card fees to your own bank at its rate. To start there is an address on our domain, and you can connect your own domain at any time: the old QR codes will lead to it.
Frequently asked questions
Is an ordering service ever really free?
Rarely. Even with no subscription there is a percentage of orders or some other payment, plus the bank’s card fees. A service has to earn on something, and it matters to see on what exactly before you sign.
Which is better: a percentage or a subscription?
While orders are few, usually a percentage; as turnover grows, usually a subscription. Work it out on your own numbers in the full cost calculator.
Can a service charge your guests?
It happens: some services add a small fee to the guest’s order. Ask who turns it on, how much it is and whether the guest sees it before paying.
Why are card fees not included in the service price?
The bank or payment provider takes them on every online payment. Some services include them in their percentage, but more often they are a separate line, so check this in the price list.