True Costs: How to Identify Hidden Subscription Fees

Dec 22, 2024

✍️ Author: Sara Villamil 


 

You’re ready to take the leap and invest in new software for your wellness business, but you’re dragging your feet—and rightfully so. The process can feel overwhelming and nerve-wracking, especially if you’ve been burned by hidden fees before.

 

According to a 2024 Capterra study, higher-than-expected costs are the most common reason for buyer’s remorse after businesses invest in software.

 

This blog will empower you to make informed decisions throughout the purchasing process. You’ll learn to spot hidden fees, identify misleading pricing strategies, and ask the right questions to avoid cost surprises.

 

With our practical tips, you’ll be able to confidently choose a transparent, honest software provider that prioritizes your financial wellness as much as you do.

 

Table of Contents:

What Exactly Are Hidden Fees?

Hiding fees in the fine print or failing to disclose them until you’re a paying customer is a common pricing strategy software companies use to lower their sticker price. 

 

Typical examples include onboarding and migration fees, usage limitations, renewal fees, data export fees, and more. 

 

Why Does Wellness Business Software Often Hide Fees?

Wellness and other service-based businesses rely heavily on software to manage memberships, bookings, client communication, and payment processing. This dependency creates opportunities for software companies to capitalize on these essential features.

 

One essential feature is contact management. To grow your client base, you need the ability to collect contact information, like email addresses, to maintain communication. Some solutions take advantage of these needs and stifle growth by limiting the number of contacts you can have and emails you can send. 

 

Common Impacts of Hidden Fees:

  • Extra charges for payment processing or membership management
  • Limits on expanding contact lists or sending emails
  • Pay-to-unlock integrations for third-party apps
  • Hidden fees to operate an online store or sell products
  • Premium charges for essential features like reporting, client support, or automation tools

These hidden fees can significantly impact day-to-day operations, budgets, and long-term growth goals.

 

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4 Signs of Misleading Pricing and Hidden Fees 

Don’t be surprised if you miss hidden fees at first glance—some software companies are pros at keeping them out of sight. They focus on advertising an attractive base rate to hook you, only to slowly introduce additional charges for essential features your business can’t function without.

 

Because of these sneaky tactics, at least a third of US companies that purchased software cite unexpectedly high costs and onboarding challenges as the main reasons for their buyer’s remorse.

 

In this section, we’ll explore the most common red flags for hidden fees and misleading pricing so you can spot them early and protect your bottom line.

 

No Trial Option

A software solution that doesn’t offer a trial period should raise significant concerns. Without the ability to test the tools firsthand, you won’t know if the software truly meets the needs of your unique wellness business.

 

A trial helps you determine whether the software solution meets your business needs, tech proficiency, and, most importantly, customer experience and expectations.

 

WellnessLiving, a software you may be familiar with, does not offer a trial period. Instead, it requires customers to commit to contracts that can be challenging to exit, even if the software does not meet their needs.

 

This tactic is a red flag for anyone looking to make an informed decision about choosing a new software platform.

 

Some questions that may remain unanswered if no trial period is offered: 

  • Customization: Can the software be customized to fit your unique business offerings and processes?
  • Learning Curve: Is the software easy to learn and implement so your operations remain smooth and the transition is as quick as possible?
  • Integration Issues: Does the software integrate well with other tools you rely on, creating inefficiencies, stress and extra work?
  • Hidden Limitations: Are there restrictions and limits to the software that directly impact your ability to achieve your goals?

Pushy Sales Tactics

Another issue that may arise when choosing business software is pushy or high-pressure sales tactics. The intent is to make you feel like you will miss out on the deal of a lifetime if you don’t commit immediately.

 

Companies like WellnessLiving and Momence attract prospective customers by offering limited-time discounts. The pressure to purchase leaves little time for research or uncovering hidden costs, causing business owners to commit impulsively for fear of losing the offer.

 

The truth is, these so-called offers are almost always available.

 

Once you’re locked into a contract, additional fees begin to surface, leaving you trapped and paying far more than expected. These tactics prey on the vulnerability of business owners who want affordable, reliable software solutions.

 

Examples of pushy sales tactics to be aware of:

  • Limited-Time Discounts: Offers that are available for a specific amount of time that pressure you to “act now” or miss out.
  • False Sense of Urgency: Offers that use discount timers.
  • Repackaged Offers: Deals that seem exclusive but upon closer observation are offered all the time.
  • High-Pressure Follow-Ups: Relentless contact through phone calls, emails, or texts.
  • Hidden Conditions: Sneaky terms buried in contracts that only surface once you’re locked in.

Vague Pricing Language 

Vague pricing language or a complete lack of transparency is yet another red flag when choosing software for your wellness business.

 

Phrases like “starting at” or “variable fees” are deliberately ambiguous, leaving you unsure about the actual cost. Software pricing should be easy to find, be presented upfront, and sit prominently on a provider’s website.

 

Some software companies, like Momence, avoid sharing pricing altogether. They offer custom plans that require booking a demo to get a sense of what you will pay. Once they have your contact information, the door is open for pressure tactics.

 

This pressure and lack of clarity is intentional. It confuses buyers, especially if you don’t know what questions to ask during the demo or purchase process.

 

Their goal? Commitment without a complete understanding of all the costs, only to encounter frustrating and expensive surprises later.

 

Intentionally vague phrases and tactics software companies use include:

  • Variable fees may apply
  • Starting at only ___ dollars a month
  • Contact us for pricing
  • Custom plans available

Unclear Usage Limits

Usage limits are caps placed on essential features, such as the number of emails you can send, the number of contacts you can manage, or the amount of data you can store—such as the videos in your on-demand library.

 

Unclear usage limits are yet another way software companies blindside users with hidden costs. These limits are often buried in fine print or glossed over during demos, making it nearly impossible to plan or budget effectively.

 

When you inevitably hit these limits, you must pay for upgrades or add-ons to access basic business needs like unlimited emails, seamless client communication, or adequate data storage. This tactic is intentional and designed to squeeze more money out of your budget while disrupting your business’s ability to run smoothly.

 

The impact of unclear usage limits on wellness business owners:

  • Costly and unexpected upgrades occur quickly.
  • Reduced member acquisition and growth due to limits on contacts and email communication.
  • Pause in business operations when data or usage caps occur at inopportune times.

Questions to Uncover Hidden Fees Before You Buy

Asking the right questions upfront is key to uncovering hidden fees and assessing pricing transparency. These questions will save you from unnecessary stress and financial surprises down the line.

 

When it comes to companies experiencing purchase regret over software, over half of them describe the financial impact of their decision as significantly impacting their long-term goals, as well as immediate performance.

 

By asking targeted questions early, you ensure you’re making the right decision and choosing software you can trust that aligns with your needs.

 

Undisclosed Setup Costs

Asking the following questions before purchasing new software will help you understand the true costs associated with this process and avoid frustrating surprises.

 

They will also gain insight into the onboarding process, the customer experience being offered, and how quickly you can start using the software effectively.

 

  • What are the initial costs to get up and running?
  • Onboarding fees?
  • Setup fees?
  • Data migration fees?
  • Do you charge fees to integrate with third-party tools I need?
  • How long is the wait for onboarding support? How long does it typically take to onboard? Days? Weeks? Months?

Data Ownership Fees and Tricks

Data ownership refers to the legal rights and control over the information you create, collect, and store while using software. For wellness business owners, this includes client records, purchase details, membership information, videos, photos, programming, and anything else tied to your operations.

 

Shockingly, some software providers may claim partial or full ownership of your data! This can restrict your access and create serious challenges if you ever decide to switch providers.

 

It’s essential to clarify who owns your data, determine its accessibility, and whether any hidden fees or restrictions are tied to it.

 

By asking the following questions upfront, you’ll gain the clarity needed to protect your business and your data and ensure you’re not stuck with a system you don’t love.

 

  • Do you give the option to pay monthly or annually?
  • Is there a binding, time-based contract to be a customer with you? How does it work?
  • Do you make customers buy out their contracts if they change their minds?
  • Do you hold data hostage until it’s resolved? (IE, the contract is up or you get your money?)
  • Do you charge additional fees to export data once a contract is over?

Costs of Being a Customer and Running Your Business

As discussed, hidden fees can add up quickly, even if nominal at first. They can eat into your budget, and suddenly you’ve committed too much time, energy and money to back out.

 

Clarity is king when it comes to avoiding surprises and making an informed decision about software that aligns with all your goals, including financial.

 

Asking about the following fees will help unveil the full scope of the actual cost of being a customer and effectively running your business.

 

  • Aside from the subscription cost, what other fees do you charge?
  • Compliance fees?
  • Refund fees?
  • Terminal fees?
  • Service fees?
  • Processing fees?
  • Transaction fees?
  • Annual fees?
  • Security fees?
  • Upgrade fees? (beyond the monthly subscription or individual feature price)
  • Usage fees? (exceeding limits on storage, emails, SMS, contacts, pages, widgets, etc.)
  • If you offer a mobile app, do you also charge maintenance or developer fees?

Pro Tips: How to Find an Honest Software Provider That Aligns with Your Business 

There are many red flags and sneaky sales tactics that software companies can use. We hope you’re starting to recognize the signs and language used to disguise and hide fees—only for them to pop up when it’s too late.

 

It’s incredibly frustrating how common these practices are, but trust us, there are trustworthy software companies out there that genuinely care about your wellness and success—financially and holistically!

 

You’ll know when you’ve found an honest provider because they’ll prioritize transparency. You won’t have to dig for pricing information or feel pressured to rush a decision. Instead, they’ll provide you with educational resources and support to help your business succeed.

 

Ask the right questions and do your due diligence—never feel silly for protecting your business. Remember that feeling pressure is a red flag in itself.

 

If it’s the right time to change your business software, the right provider will value the wellness of your business and won’t try to trick you for their own gain.

 

Define Your Budget and Outline Needs vs Nice-to-Haves

Having a clear needs vs. nice-to-have list is an essential step when choosing new software for your wellness business.

 

Start by defining your budget and figuring out what you absolutely need to run your business at its most basic level. Then, create a separate list of features that would be nice to have but aren’t deal-breakers.

 

This clarity will keep you grounded, prevent overspending, and help you avoid falling prey to flashy sales tactics that are often too good to be true.

 

Essential things to consider for budgeting and needs analysis:

  • Set a realistic budget and stick to it.
  • List your must-have features—the essentials for running your business smoothly.
  • Create a dream list of nice-to-haves that aren’t critical but could be upgraded to later.
  • Evaluate tiered pricing options to find the best fit based on your budget and must-haves. Consider if an upgrade might be possible down the road as your financial goals are met.
  • Factor in your growth goals—will the software support expanded services and client list growth in the future?

Analyze Prospect Websites for Price Structure and Fee Transparency

It may seem tedious, but taking the time to peruse software websites is valuable research. You might be surprised at what you find, discovering a solution that fits your needs, budget, and values—perhaps one you hadn’t even considered.

 

By closely reviewing pricing, how it’s presented, features, usage limits, and asking the right questions, you’ll get a clearer picture of a provider’s transparency. This will help you determine if the software is the right fit for your business needs or not.

 

Specific pages and elements to compare across prospective providers:

  • Pricing Page: Look for clear, upfront details on costs and any additional fees—nothing hidden or requiring you to “contact us for pricing.”
  • Features Page: Review what’s included at each pricing tier, noting any limits or restrictions that may impact your business.
  • FAQ or Terms & Conditions: These pages help clarify all fees, restrictions, and any unclear language that may be buried in the fine print.
  • Onboarding Page: Check for clear setup information and identify any extra costs involved in getting started.
  • Contact Us Information: Ensure there’s easy access to customer service, with good hours, accessible contact details, and quick response times.

Read Customer Feedback on Reputable Review Websites

Unfortunately, we can’t assume that the 5-star reviews showcased on a company’s website are enough to convince us to purchase their product. Naturally, they’ll highlight their best reviews—who wouldn’t?

 

To truly get the full picture, it’s essential to dive deeper and explore third-party review sites, where real customers share their experiences—both good and bad.

 

No software provider is perfect. What matters is how they respond to feedback and whether they take steps to improve based on customer input.

 

While nothing beats a personal word-of-mouth recommendation, if you don’t know anyone using the software, reputable third-party review sites, case studies, and OfferingTree’s Yoga Studio Software Buyer’s Guide may provide valuable insights.

 

Schedule a Live Demo 

A live demo is one of the best ways to get a feel for the software. It’s an invaluable opportunity to ask questions about the software’s features, functions, data ownership, and any hidden costs in real time.

 

Speaking with a representative allows you to gauge how much the organization values the customer experience and how well they listen and respond to your unique business needs. This opportunity should help you gain clarity and address any concerns you may have.

 

Here are steps to prepare for a software demo:

  • Have a list of questions: Be specific about what you need and are looking for. Ask about any potential hidden fees, restrictions, or usage limits.
  • Peruse the software website: Read through pages that outline the offerings and features. The more you know in advance, the easier it will be to assess if the software aligns with your goals.
  • Take notes: Document important details, including pricing, functionality, and any promised features, so you can compare them with other options and remember key points.

Looking for a Transparent Software Partner? Consider OfferingTree!

If you’re looking for a software provider that truly values transparency and supports your wellness business every step of the way, OfferingTree is here for you! We pride ourselves on no hidden fees and offer tiered pricing options designed to meet your specific needs—whether you’re just starting out or growing rapidly. 

 

Plus, we offer a 7-day free trial so you can experience everything we offer without commitment. Ready to take the next step? Schedule a demo to see how OfferingTree can meet your needs, or explore our demo video library to learn more about how we can support your business growth.

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