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Google Workspace Pricing (2023): How to Choose the Right Plan for Your Business
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Google announced in February 2023 Workspace price changes . For customers who pay annually, rates remain unchanged. However, customers who pay monthly will pay slightly more for this flexibility. Price changes go into effect March 2023, except for customers with 10 or fewer accounts, for whom changes are deferred until January 2024.
Here’s a look at the current Google Workspace plans and pricing , along with key features you might consider when selecting a plan.
Plans and pricing for Google Workspace
Google workspace’s plans.
Google Workspace offers three Business plans — Starter, Standard and Plus — and two Enterprise plans — Standard and Plus ( Figure A ). An additional option, Google Workspace Essentials Starter , allows teams of up to 25 people to use Google’s collaboration tools, such as Google Docs, alongside an existing email and calendar collaboration system.
Pricing for Google Workspace Business plans
- Google Workspace Business Starter : $7.20 per user paid monthly or $72 per user paid annually.
- Google Workspace Business Standard : $14.40 per user paid monthly or $144 per user paid annually.
- Google Workspace Business Plus : $21.60 per user paid monthly or $216 per user paid annually.
Pricing for Google Workspace Enterprise plans
Pricing for Enterprise plans is not published. As a legacy customer, when I walked through the upgrade process, the offers I saw included the following; the per user pricing Google offers your organization for Enterprise plans may be different.
- Google Workspace Enterprise Standard: $27.60 per user per month or $276 per user paid annually.
- Google Workspace Enterprise Plus: $36 per user per month or $300 per user paid annually.
Google requires that new customers who seek Enterprise licenses contact Sales. Note that there is no minimum or maximum number of users for Enterprise plans.
Google Workspace plans’ features compared
Google provides a comparison page with a detailed checklist that allows you to review the features offered not only across the Business Starter, Standard and Plus plans, but also across the various Enterprise, Education and Essentials editions ( Figure B ).
Pricing of Microsoft 365 Business plans
The adjusted prices align Google Workspace pricing more closely with Microsoft 365 . For example, Microsoft lists pricing for its 365 Business offerings as:
- Microsoft 365 Business Basic: $72 per user paid annually.
- Microsoft 365 Business Standard: $150 per user paid annually.
- Microsoft 365 Business Premium: $264 per user paid annually.
Key features of some Google Workspace plans
The following analysis compares key features of Business Starter, Business Standard and Business Plus plans, along with a few Enterprise plan features.
User limits
The Google Workspace Business plans all add one key constraint not previously present in prior G Suite plans: a maximum of 300 users. If you need more than 300 user accounts, you’ll need an Enterprise plan. Microsoft similarly sets a limit of 300 user accounts on its Microsoft 365 Business plans.
Storage limits
All files created, added or modified after June 1, 2021, count toward a user’s storage limit. Files such as Google Docs, Sheets, Slides, Drawings, Forms, Sites, images (e.g., JPG, PNG), PDFs, Word, Excel, PowerPoint and other formats will count toward storage limits.
SEE: Google Workspace storage: 3 essential things you need to know (TechRepublic)
External sharing
Of the three Google Workspace Business plans, both Business Standard and Business Plus offer an administrator the ability to restrict and manage external file sharing with specific domains. An administrator lacks control over external sharing in Business Basic, which may make this plan less appealing where such restrictions may be desired.
Google Meet recording
Business Standard and Business Plus add the ability to record and save Google Meet video conferences. The maximum number of Google Meet participants for the plans are:
- 100 people for Business Starter
- 150 people for Business Standard
- 500 people for Business Plus
Google’s feature comparison page lists several Meet features, such as polling and Q&A and breakout rooms, all of which require a Business Standard or better account. Business Plus and better plans also support attendance tracking in Meet.
E-discovery and retention
Google Vault is the organization’s offering to support administrative e-discovery and data retention. Only Business Plus includes Google Vault; although, organizations on Starter and Standard may select Vault as a paid add-on. When I browsed through my offered pricing, Vault displayed a $6 per user per month add-on price.
How to choose a new Google Workspace plan
If you’re a new customer, your task is relatively simple. Define your needs, select the plan that best fits the balance of your needs and your budget, then help people in your organization get started with Workspace .
If you have been a G Suite or Google Workspace customer, an administrator can sign in to the Admin console to access account options. To do this, the admin would sign in at https://admin.google.com , select the three-horizontal line menu in the upper left corner, then choose Billing, and select Get More Services from the sub-menu.
If you are a current customer, the Google Admin Get More Services page highlights available Google Workspace plans ( Figure C ).
Select any of the options, and the system will display the details of key features your account will either gain or lose. Select your option, address any identified issues and follow any step-by-step instructions to switch.
How to choose between monthly or annual Google Workspace plans
A Google Workspace administrator has the option to choose between monthly or annual account payment plans ( Figure D ). In a stable situation with sufficient capital and cash flow, the annual option makes the most financial sense.
However, not every organization has the ability to pre-pay for accounts for a year. The decision between monthly and annual payments becomes more significant as the number of users increases. Since the total dollar difference can be on the order of thousands of dollars each year, your organization’s cash flow and capital position may affect your decision.
Additionally, if you anticipate major reductions in the number of accounts during the upcoming year (i.e., layoffs), the monthly payment option may be preferable. The marginal cost of a few dollars per month per account may be preferable to locking in a discount by paying an annual price for an account no longer needed at a future date.
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New pricing for G Suite Basic and Business Editions
David thacker.
Vice President of Product Management, G Suite
More than a decade ago, we introduced Gmail—our first cloud-native productivity app—to help make email safer and easier for everyone. Since then, we pioneered more ways for teams to collaborate in real-time with products like Google Calendar, Docs, Drive and Hangouts. Together, these apps make up G Suite , our set of intelligent, secure productivity and collaboration tools.
We’ve brought businesses more than a dozen new G Suite services to help them reimagine how they work, including powerful video conferencing (Hangouts Meet), secure team messaging (Hangouts Chat) and enterprise-grade search capabilities (Cloud Search). We’ve also infused our products with advanced artificial intelligence to make it easier to respond to emails , gather insights from data and protect against phishing attacks before they happen.
Today, more than four million organizations use G Suite to collaborate efficiently and securely, and analysts have taken notice. IDC ’s Wayne Kurtzman notes, "Google has established G Suite as a secure, enterprise-ready, AI–powered productivity and collaboration platform. With its broad set of capabilities, G Suite offers a strong value proposition to customers.”
Over the last ten years, G Suite has grown to provide more tools, functionality and value to help businesses transform the way they work. The one thing that hasn't changed over this time is price. Today, we are announcing two incremental list price updates to reflect this value. Starting on April 2, 2019*, G Suite Basic Edition will increase by $1 (from $5 to $6 per user/month) and G Suite Business Edition will increase by $2 (from $10 to $12 per user/month), or the local currency equivalent where applicable. These increases will apply globally with local market adjustments for certain regions. Pricing for G Suite Enterprise Edition customers will not change.
For existing G Suite Basic or Business edition customers on the Flexible Plan , the new list prices will go into effect on April 2, 2019*. For customers on the Annual Plan , the new prices will go into effect the first time their plan renews on or after April 2, 2019*. These changes will not impact current contracts or any renewal events prior to April 2, 2019*.
Additionally, for those Basic and Business Edition customers who receive their bill from Google, we’ll send an email with details specific to their domains no later than February 28, 2019. Any customer that licenses G Suite through a reseller should hear from their partners directly regarding the new pricing, or they can reach out to their partners proactively.
We are grateful for the many businesses that use G Suite to empower their teams to work collaboratively, and we remain committed to expanding its functionality to help our customers succeed. Feel free to reference this edition guide to learn more about each offering.
* Note: For customers who sign up for G Suite Basic or Business editions from February 1, 2019 through April 1, 2019, the pricing changes will go into effect starting on June 1, 2019.
Introducing your new home for work in G Suite
Today we’re introducing a better home for work in Gmail that integrates core tools like video, chat, email, files, and tasks and makes them better together, so you can stay on top of things from anywhere.
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Business Education
Google workspace pricing explained: calculate the costs for your business.
G Suite has become Google Workspace, and despite the name change, businesses are still getting access to all the best office productivity tools that can ensure that you can collaborate and communicate in the best way with your teams. There are several different plans available, and Google even has special pricing for nonprofit organizations (see our guide on Google Workspace for Nonprofits here ).
Of course, if you have a for-profit business, access to all of Google’s best tools doesn’t have to cost a fortune, either. Choosing the right plan starts with knowing what your options are. Every Workspace plan includes all of Google’s best tools, apps, and platforms, including:
Plus, you’ll get a custom business email address that includes premium security and management controls, Google’s trusted support, and so much more. Let’s take a look at each of the available plans separately so that you can see what your options are.
Google Workspace Plans and Pricing
For businesses, there are four options for packages, offering various prices and features for companies of different sizes and needs. Their fourth and final package is the Enterprise option, which allows you to essentially customize your solutions and get custom pricing, too.
Business Starter
At about $6 per month, per user, this is the most affordable business option for Workspace. This plan allows you to have up to 100 participants in video meetings and comes with:
- 30GB of cloud storage for each user
- Management and security controls
- Google’s Standard support plan
Business Standard
This plan is double the cost of the Starter package, but you get a lot more for your money here, too. It costs $12 per user each month, and the Standard plan comes with that custom business email, but ups the features to include:
- 150 participants per meeting
- Recording feature for video meetings
- 2TB of storage for every user
- Available paid upgrade to Enhanced support plan (Standard support included)
Business Plus
The Business Plus plan takes things up another notch, providing you with even more access for your business teams at about $18 per month, per user. In addition to everything offered thus far, the Plus plan includes:
- eDiscovery and retention features
- 500 participants in video meetings
- Attendance tracking
- 5TB of cloud storage for every user
- Enhanced management and security controls
- Vault (a dedicated database where you can manage, export, and even search data from Gmail, Drive, and other Google apps)
- Advanced endpoint management
- Available upgrade to Enhanced support plan (Standard plan included)
At the Enterprise level, you can essentially create the perfect package for your business when using Google Workspace. It comes with all the features of the Business Plus plan, as well as:
- S/MIME encryption
- Noise cancellation and in-domain live streaming for video meetings
- Unlimited storage for users
- Advanced compliance, security, and management controls
- DLP and data regions
- Enterprise endpoint management
- Enhanced support (paid upgrade to Premium plan available)
You do have to contact sales for pricing on this plan, but it’ll be a conversation worth having because even their Enterprise rates are generally designed to be affordable for the modern business. Legacy customers that have upgraded report prices around $20-$30 per user, per month depending on the level of the plan (Standard or Plus).
The Benefits of Google Workspace
If you’re considering this platform for your business communications , you’ll probably want more to consider besides the fact that “it’s Google” and everyone already knows how to use it. However, we do have to reiterate that selling point because it’s one of the biggest ones—what’s easier to implement than a system people are already comfortable with? Even if they haven’t used all the tools, the skills translate easily and they’re familiar with the way Google operates in general.
Some other perks of using the Google Workspace platform include:
- Accessibility: Google’s various tools can be accessed with your business account from any device, at any time. Desktop and mobile support come standard, including apps for iOS and Android alike (although, admittedly, Android devices offer native support from Google).
- Collaboration: You will also have access to a host of real-time collaboration tools so that you can work with your teams even when you’re working remotely .
- Branded Email: Branded email will ensure that you make a statement and keep your professional image strong without spending a fortune on other email or domain hosts.
- Instant Meetings: Google Meet makes it easy for you to have instant (and scheduled) meetings of all kinds. Whether you’re around the corner or around the globe, you can always feel like you’re right there.
- Fully Customizable: How do you work best? Customize Google Workspace to meet your needs, no matter what those might be. You’ll have limited access and features on some of the lower plans, but they all allow you to customize a workspace that fits the needs of your business.
Once you figure out your needs, you can compare them to the available Google Workspace plans and ensure that you get what fits your needs and your business budget. If you have a G Suite account and are upgrading, you can simply login at https://admin.google.com and go to Billing, and “Get More Services”, which will highlight the available plans from Google Workspace that you can upgrade to.
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If you want to take things even further, you can hand off your communications and admin needs to a full-time team of experts, thanks to the dedicated virtual receptionists at Smith.ai. Our team offers 24/7 phone answering and live website chat support , along with assistance for lead intake , appointment scheduling , and so much more.
Still working on your marketing? Ask how we can help with outbound sales and outreach campaigns to generate the business in the first place. Plus, it’ll all be done with a customized strategy that has your business needs in mind.
To learn more, schedule a consultation to discuss what the 24/7 virtual receptionists can do for your business communications and admin needs. You can also reach us at [email protected] or (650) 727-6484.
Sean Lund-Brown is a current Marketing Assistant for Smith.ai. A graduate from Metropolitan State University of Denver, Sean graduated with a BA in Music and an individualized degree in Teaching Vocal Pedagogy.
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Home » Blog » Google Workplace Pricing
Email Marketing Tools
Google Workspace Pricing: How Much is it and What’s Included?
By Inka & Roberta
EmailTooltester is supported by readers like yourself. We may earn a commission when you purchase through our links. Of course, this won't increase the cost for you.
We’re all familiar with Google, but if you’re a business user, you’ve probably also come across Google Workspace at some stage, though you probably knew it by its former name: G Suite.
What is Google Workspace , exactly?
Google Workspace is Google’s range of cloud-based office productivity tools. It initially only included Gmail, Docs, and Sheets, but in recent years, Google has also added tools like Google Drive, Chat, Meet Video (among many others).
Typically, Google Workspace was seen as the cheaper option for business productivity tools , especially in relation to its biggest rival, Microsoft Office 365 (read our detailed review of the Office 365 suite here ).
This has made it popular with millions of small-to-medium businesses worldwide. Higher-level plans offering advanced archiving, security and administrative features have also made it an attractive choice for larger enterprises.
However, the shutdown of Google's G Suite Legacy account in 2022 left many users wondering: I s Google Workspace still a viable option?
Find out as we take you through everything you need to know about the new Google Workspace pricing , to help you make a decision.
Google Workspace Pricing: How much does it cost?
Google Workspace offers four main plans:
- Business Starter , which costs $6/user/month and comes with 30 GB of Google Drive ‘pooled' storage (meaning that it can be shared among all your users);
- Business Standard , which costs $12/user/month and provides 2 TB of pooled storage and extra security and admin controls;
- Business Plus , which costs $18/user/month and comes with 5 TB of pooled cloud storage and enhanced security; and
- Enterprise , with unlimited storage and advanced controls – you'll need to contact sales for a quote.
This might be manageable if you’re a smaller business with just a handful of users.
But it could sting a little if you’re a mid-large-sized business , running your entire team’s email, storage and productivity tools out of Google Workspace.
What’s Included in Each Google Workspace Plan
Each plan will give you access to your own email account and all the Google Workspace productivity and collaboration tools. The main differences lie in storage allowance, security features, and the level of administrative contro l you have over the products.
Which Google Workspace Plan Should You Choose?
Google workspace business starter.
This plan would be a good option if:
- You’re a freelancer, solopreneur or small business owner who manages a small team (i.e. less than 5 employees)
- You want an email address on your own domain
- You want to run your office tools out of Google (e.g. as opposed to Microsoft Office)
- You don’t work with large file formats and don’t need a huge amount of space to store files and emails
- You don’t need archiving for your emails and chat messages, or advanced admin and security controls
However, if you have a bigger team and/or don’t think the 30 GB of personal storage will cut it, then it’s worth considering one of the higher plans.
Google Workspace Business Standard
The $6/user/month price difference between Google Workspace Business Starter and Business Standard means that the Standard plan may not be a realistic option for some businesses. However, we’d recommend this plan if:
- You manage a medium-to-large sized team
- You want access to all the features of Google Workspace Business Starter , but also want email and message archiving (Google Vault)
- You don’t want to worry about running out of storage space for your files (2 TB should be enough for most small businesses)
- Easily syncing and sharing files across teams/the company is important to you
- You plan to use Google Meet for video conferencing and would have less than 150 participants on any call
- You don’t need advanced admin and security controls (e.g. data loss prevention, security key management)
Of course, if you need even greater control and more advanced security features, then Business Plus would be the way to go.
Google Workspace Business Plus
At $18/month/user, this plan is directed at larger businesses. We'd recommend it if:
- You are in need of more advanced security features
- 2 TB per user isn't enough for you. The Business Plus plan allows for 5 TB per user
- You regularly host very large video conferences with up to 500 participants
Google Workspace Enterprise
This is ideal for businesses and enterprises that need the features offered by Google Workspace Business Plus, but also:
- Have larger teams, and therefore require greater admin and security controls over their Google Workspace apps
- Need advanced security features such as device management rules, security key management and data loss prevention
- Aside from having access to email archiving via Google Vault, need to be able to integrate with third-party archiving tools like Barracuda or Mailstore
The good thing is that you can purchase different plans for different users within your business. For example, if you only want Enterprise for some of your users, you don’t have to commit your entire team to it. This could help you reduce your monthly cost significantly.
There are also special plans available for schools (Google Workspace for Education and Google Workspace Enterprise for Education), and non-profits (Google Workspace for Non-profits).
Plans can be billed monthly or annually.
What's Not Included in Google Workspace's Pricing Plans?
Google offers a few optional features that can be added to your Google Workspace plan for an extra cost. These include:
- Google Duet – Google's generative AI assistant that integrates directly with your Workspace apps, helping you to perform handy tasks such as create meeting summaries, draft emails, and build presentations, among many other things. While you can currently trial this product for free, Google have announced that it will be charged at $30 per user, per month.
- Google Voice – Google's telephony service that allows you to make phone calls and send text messages. Plans range from between $10-30 per user, per month. Note that this service is only available in the US, UK, and Europe. A SIP Link subscription can be connected to Google Voice in Argentina, Brazil, Chile, Colombia, and Mexico.
- Google AppSheet – Google's no-code software development platform can also be added to your Google Workspace account. Pricing starts from $10/user/month.
Google Workspace Pricing: Final thoughts
After taking this all in, you might be wondering, is Google Workspace worth it?
Well, there are a few things to consider here. Firstly, Google Workspace Business Starter and Business Standard are still more affordable than comparable plans for Microsoft Office 365 .
Additionally, you have access to a fairly complete suite of office productivity applications and email, plus some generous storage allowances (especially with the Google Workspace Business Standard plan). It used to be possible to use personal Google Drive subscriptions alongside your Workspace account, but this is no longer an option, unfortunately. However, the storage is now pooled and can be shared among all your users.
As you’ve seen, there is a range of plans catering to different budgets and requirements, meaning that you have a good chance of finding one that’s right for you.
Sure, we wouldn’t recommend it if you were only looking for an email hosting solution for your business (there are other providers that are much cheaper, e.g. Namecheap ).
But in our view, you get a decent amount for what you’re paying – enough to be able to comfortably run many of your business’s key functions through Google Workspace.
> Try Google Workspace free for 14 days
Still have questions about Google Workspace? Or want to share your experience with it? Leave us a comment below.
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The authors
Inka Wibowo Inka Senior Content Manager BBus (Marketing), Griffith University At Tooltester since 2018 55 articles written">
Senior Content Manager
Hi, I'm Inka! I spent the earlier part of my career in agency land, helping businesses of all sizes get their email marketing campaigns up and running. Now, at EmailTooltester, I'm using my experience to help businesses like yours find the best email marketing services for your needs.
Roberta Phillips Roberta Marketing Manager BA (HONS) UEA, NORWICH At Tooltester since 2019 48 articles written">
Marketing Manager
Hey, I'm Roberta! Having worked as a digital marketer for a host of online businesses, I've tried, tested, fallen in love with and despaired with so many marketing tools. I'm excited to help you find the email marketing and CRM tools you need to thrive.
We keep our content up to date
14 Mar 2024 - Information added regarding discounts 14 Dec 2023 - Added information about Google Duet and what's not included in Google Workspace plans 28 Sep 2023 - Added new monthly prices and other smaller details 08 Jan 2023 - Added information about forwarding email addresses 07 Feb 2022 - Added note about Essentials Starter plan 25 Jan 2022 - Added note about G Suite legacy free edition 22 Feb 2021 - Updated names of plans and features 15 Oct 2020 - The name was updated from 'G Suite' to 'Google Workspace'
Our Methodology
This article has been written and researched following our EmailTooltester methodology.
Gas prices hit highest level since December due to cracked pipe
The pipeline's operator warns of "big consequences" for supply as plans to repair the fracture get under way aboard a key platform in Norway.
Business reporter @SkyNewsBiz
Monday 3 June 2024 15:10, UK
Wholesale costs for natural gas have hit their highest levels across Europe since December last year after key Norwegian export operations were shut down due to a cracked pipe.
The damage, discovered aboard the Sleipner Riser platform, prompted wider energy infrastructure to be halted including the Nyhamna processing plant which exports gas to the UK, pipeline operator Gassco said.
Alfred Hansen, the company's head of pipeline system operations, told the Reuters news agency: "This has big consequences from a supply perspective."
Money latest: First direct flight to Vegas from the North launches
He added that while there were options for bypassing Sleipner, they were time-consuming and not without risk.
There was no estimate on how long the fracture could take to repair.
The shutdowns affect deliveries to the Easington terminal off the Humber estuary - one of six major import and storage facilities in the UK.
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LSEG data showed a 10% leap in the UK contract for July delivery to 90p per therm in the wake of the unplanned shutdown announcement.
That price was last seen at the end of December last year.
It was a similar picture for the main European front-month contract, which also hit a 2024 high as deliveries to countries including Germany also fell.
Norway became Europe's biggest gas supplier in 2022 as Russia faced an international backlash for its invasion of Ukraine .
Prices have been volatile in recent weeks due to maintenance schedules in Norway coinciding with attacks on Russian infrastructure.
The immediate leap in prices could have been worse had the outage struck in winter, the period of highest demand.
Prolonged damage to imports, however, would have a bearing on energy costs for households and businesses heading in to winter 2024/25.
Keep up with all the latest news from the UK and around the world by following Sky News
It would not be felt until September at least.
That is because the UK regulator Ofgem announced last month that average annual bills under the energy price cap would fall by more than £100 from July to September.
While that level is locked in, limited increases are already currently expected for the two, colder, three-month periods that will follow.
A Gassco spokesperson said: "We are working... with a plan for repairs and with a plan for compensatory measures to deliver the highest possible volume to Europe."
Spotify is increasing U.S. prices for many of its subscription plans
Spotify is increasing its prices in the United States for many of its subscription plans.
In a statement on its website , the audio streaming service said the increases were necessary so that it can "invest in and innovate on our product features and bring users the best experience."
Here are the changes:
- Premium plan: $10.99 to $11.99.
- Duo plan, for two users in the same household: $14.99 to $16.99.
- Family plan, for up to six users in the same household: $16.99 to $19.99.
The company still offers a limited-service ad-supported tier, as well as a $5.99 plan for students. That price is not changing.
It's only the second time Spotify has raised U.S. prices. The company is now consistently profitable, CEO Daniel Ek said during its latest earnings announcement, although its most recent monthly active user growth figure narrowly missed targets.
In April, Bloomberg News reported that price increases were coming in part to cover the cost of audiobooks, a service Spotify is trying to boost in part to reduce its reliance on music — royalty payments for which still comprise the largest part of its budget.
The increases come as some U.S. companies are announcing price cuts amid signs that consumer spending is flagging.
“Slower labor market momentum will continue to limit income growth and push more families to exercise spending restraint amid reduced savings buffers and higher debt burdens,” Gregory Daco, EY-Parthenon's chief economist, said in a note Friday. “Factoring increased price sensitivity, household spending momentum will gradually cool.”
Rob Wile is a breaking business news reporter for NBC News Digital.
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Spotify hikes prices of premium plans again as streaming inflation continues.
The cost of the individual plan rises by $1 per month, with the duo plan rising by $2 and the family plan by $3.
By Alex Weprin
Alex Weprin
Media & Business Writer
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Spotify is hiking the prices of its premium plans for the second time in a year, a sign that streaming inflation is still running hot.
The music streaming giant said Monday that it is adjusting the prices for all of its premium plans, with the individual plan rising by $1 per month to $11.99, the duo plan rising by $2 per month to $16.99, the family plan rising by $3 per month to $19.99. The student plan, which is offered at a discount to verified students, remains at $5.99.
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Taylor swift's 'tortured poets department' sets record with 1b spotify streams in first week of release, spotify hits 239m paying subs in first quarter.
The company last hiked prices in the U.S. last July.
In the email, Spotify writes that it is changing the prices “so that we can continue to invest in and innovate on our product features and bring users the best experience.”
Streaming services, both audio and video, have been aggressively raising prices over the past year. While historically many services have gone a couple of years in between price hikes, the move by Spotify suggests that companies may be more aggressive in 2024 when it comes to charging more.
Generally, when one player in the space moves to raise prices, others follow.
In its last quarter, Spotify reported 293 million paying subscribers. CEO Daniel Ek said at the time that the company would be flexible with pricing, offering new products like audiobook-only and music-only tiers.
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Biden and Trump share a faith in import tariffs, despite inflation risks
Both candidates’ trade plans focus on tariffs on imported Chinese goods even as economists warn they could lead to higher prices.
Promising to make things more expensive when consumers already are angry over high prices might seem an unusual political strategy. But it’s one that both President Biden and former president Donald Trump are choosing.
Both men, as they vie for a second White House term, say that tariffs on imported Chinese goods are needed to promote domestic manufacturing and to clap back at China’s zero-sum trade practices. While economists say that tariffs result in higher prices, both Biden and Trump insist that consumers will be unscathed.
Biden’s tariffs on $18 billion in Chinese electric vehicles , batteries and computer chips, announced last month, are likely too small to lift the economy’s overall price level, economists said. But Trump’s plan for 60 percent tariffs on all $427 billion in goods that China ships to the United States each year would almost certainly reshape trade in ways that consumers would notice.
“It’s a much bigger shock for sure. Yes, it would definitely be felt,” said Mary Lovely, an economist with the Peterson Institute for International Economics who co-wrote a recent analysis of Trump’s plan.
When Trump in 2018 imposed tariffs on a wide range of Chinese imports, he promised that China would pay while critics warned that the result would be higher prices for Americans.
The actual outcome provided talking points for both sides.
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Contrary to expectations, the U.S. inflation rate fell after the tariffs were imposed and remained lower for almost three years, until the pandemic upended global supply chains. Consumer prices were rising at an annual 2.9 percent rate in July 2018 when the first China tariffs took effect. One year later, inflation was below 2 percent.
But that did not mean that the Chinese were paying the tab. Numerous studies concluded that the costs fell on Americans, if not on consumers. Trump’s tariffs “had little to no impact on the prices received by foreign exporters,” according to a 2018 study by economists Mary Amiti of the Federal Reserve Bank of New York, Stephen Redding of Princeton University and David Weinstein of Columbia University.
The Americans who paid the tariffs were people like Lance Ruttenberg, chief executive of American Textile Company, whose headquarters in Duquesne, Pa., stands where Andrew Carnegie once reigned over a steelmaking empire.
Ruttenberg’s 99-year-old company is one of nearly 225,000 U.S. importers that purchase items from foreign suppliers and then either use them to make finished goods or sell them to consumers.
As basic textile and fabric production moved offshore in recent decades, American Textile began importing around 3,500 shipping containers full of pillow shells and specialty fabrics each year. The company saw its costs rise by millions of dollars each year for the imported Chinese materials it uses in pillows and bedding that are sold by brands such as Sealy and Tempur-Pedic.
Trump’s tariffs came at the end of a decade of ultralow inflation, which made it hard for companies to raise retail prices. Under pressure from retailers like Walmart to hold the line, importers absorbed the cost of the tariffs by shrinking their profit margins.
“The retailers, our customers, had no appetite for accepting that price increase. And so what happens is the American manufacturer winds up absorbing it,” Ruttenberg said.
A 2021 study by four economists concluded that U.S. companies absorbed “much of the higher costs associated with the tariffs by earning lower margins on their sales.”
The analysis of price data on 90,000 products found that major retailers escaped the full brunt of the tariffs by placing unusually large import orders between the announcement of the tariffs and their effective date, and by switching to suppliers outside China.
The study was conducted by Alberto Cavallo of Harvard Business School, Gita Gopinath of the International Monetary Fund, Brent Neiman at the University of Chicago and Jenny Tang with the Federal Reserve Bank of Boston.
There were other reasons for the muted consumer price reaction. The dollar rose about 10 percent against the yuan in 2018, which offset a portion of the tariffs’ impact by making Chinese products less expensive.
Other Asian currencies fell alongside the yuan. So prices for goods from suppliers in South Korea, Vietnam and Indonesia, also declined. That allowed some U.S. buyers to switch from tariffed Chinese products to less expensive alternatives.
Plus, the anti-China tariffs were rolled out in several waves, meaning the full effects were not felt for more than a year after the trade war began. The first two waves of 25-percent tariffs hit a relatively small volume of goods, just $50 billion. To minimize the political fallout, Trump’s trade team refrained from hitting everyday products used in American homes, concentrating instead on industrial goods.
The third and largest tariff list, covering $200 billion in Chinese imports, imposed 10 percent tariffs in September 2018. A final 15 percent tariff on $112 billion in imports was announced in September 2019, bringing the total value of affected products to roughly $360 billion.
A few months later, the pandemic plunged the economy into a deep freeze, overwhelming the tariffs’ effects. Inflation virtually disappeared by May 2020. But then, as global supply chains struggled to keep pace with consumer demand for products to make the work-from-home era more agreeable, prices soared, igniting an inflationary episode that has yet to end.
In a recent interview with Time magazine, Trump repeated his false claim that other countries pay U.S. tariffs and rejected the idea that Americans would suffer.
“I don't believe it'll be inflation,” Trump said, adding that his tariffs are intended to convince foreign companies to build new factories in the United States.
But the renewed China trade war that Trump promises is unlikely to be as painless for consumers as the 2018-2019 campaign, economists said. His new tariffs would cost the typical middle-class household an extra $1,700 annually, according to the Peterson Institute study co-written by Lovely and economist Kim Clausing.
First, the sheer magnitude of the import taxes will be larger. Trump has proposed a 60 percent tariff on Chinese goods, roughly four times the average levy of his original policy, and a 10 percent tax on the $3 trillion in merchandise that the United States imports each year from all countries.
Some companies are already making contingency plans. Stanley Black & Decker chief executive Donald Allan told analysts last month that he still has “PTSD” from the $300 million in annual tariff costs the toolmaker incurred during Trump’s original trade war. The company has cut its import reliance on Chinese suppliers from 40 percent to no more than 25 percent and would diversify further if tariffs increase, he said.
Stanley Black & Decker also would probably “have to do some surgical price actions,” as well, Allan said.
Finally, circumstances have changed since 2018. Importers cannot count on the dollar rising as much as it did then. And after three years of elevated inflation, companies may be able to more quickly pass along their higher costs to consumers.
“My gut is that the impacts will be much more visible,” said economist Brad Setser of the Council on Foreign Relations.
American Textile responded to the 2018 tariffs by shifting about 30 percent of its supply chain from China to other countries, such as Vietnam, India and Pakistan. And it eventually secured government permission to continue importing on a tariff-free basis some items that could not be obtained from American suppliers.
Yet the existing tariffs, which Biden left in place after criticizing them during the 2020 campaign, are still being felt. As the Federal Reserve struggles to bring rising prices under control, the China tariffs are keeping the annual inflation rate about 0.3 percentage points higher than it otherwise would be, according to a 2022 Peterson study by economist Katheryn Russ.
Some new American Textile products that contain tariffed inputs are more expensive than they otherwise would have been, Ruttenberg said.
“As you develop products going forward using these new input costs, inevitably the price of the next generation of a product is higher than it would have been absent the tariffs being there,” he said. “So inevitably the prices of everything increase over time.”
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Senators See Possible Conflicts of Interest in Health Care Pricing Tools
A data analytics firm that helps insurers collect big fees while leaving some patients with unpaid bills has been summoned to explain its business model.
By Chris Hamby
Chris Hamby has been investigating the lucrative business of out-of-network medical claims.
The chairmen of two Senate committees overseeing health policy, concerned about companies “padding their own profits” at the expense of patients, are looking into the practices of a data analytics firm that works with big insurers to cut payments to medical providers.
The firm, MultiPlan, recommends what it says are fair payments for medical care, but the firm and the insurers can collect higher fees when payouts are lower. This business model could “result in an improper conflict of interest,” the chairmen of the two committees, Ron Wyden of Oregon and Bernie Sanders of Vermont, wrote in a letter to the firm’s chief executive that was released on Tuesday.
The senators called on MultiPlan to meet with the committees’ staffs to discuss an investigation last month by The New York Times that found the firm’s pricing tools could leave patients with unexpectedly large bills when they see doctors outside their health plans’ networks.
“Our committees are engaged in ongoing legislative work to put a stop to practices by plan service providers that drive up health care costs for consumers while padding their own profits,” the letter to Travis Dalton, the MultiPlan chief executive, said.
In a statement, MultiPlan said it was working with the Senate committees “to address their questions and explain the cost and complexity patients can face” when choosing high-priced care outside their networks. “We are committed to helping make health care transparent, fair and affordable for all,” the statement said.
The committees’ inquiry reflects growing scrutiny of the New York-based firm, which has largely remained out of the limelight even as it has staked out a dominant position in a lucrative corner of health care.
Another senator, Amy Klobuchar of Minnesota, this month asked federal antitrust regulators to investigate whether insurers and MultiPlan were colluding to fix prices, and multiple health systems have sued the firm, accusing it of similar anticompetitive behavior.
Separately, the Department of Labor said Tuesday that it had “a number of open investigations” into the type of pricing services MultiPlan provides, but declined to name specific companies. The agency, the primary regulator of employer-based health insurance, stressed in a statement that companies were legally obligated to ensure the firms processing medical claims acted in their employees’ best interest.
The letter from Mr. Wyden, a Democrat, and Mr. Sanders, an independent, also steps up attention on employer-based health insurance, which is the most common way Americans get coverage and a major component of MultiPlan’s business.
As health care costs climb, some employers are looking more closely at what they pay insurance companies to administer their plans, but they are often frustrated by contracts that limit access to their own claims data. To address this, a bipartisan group of senators, including Mr. Sanders, introduced legislation in December that would require insurers to turn over this data .
“Most businesses do their best to manage the ever-increasing cost of their group health plan, but it should be easier,” Senator Mike Braun, an Indiana Republican and cosponsor of the bill, said in a statement.
A majority of employers choose to pay medical claims with their own money and use an insurer to administer their plans. This setup, known as “self-funding,” can be lucrative for insurers like UnitedHealthcare, Cigna and Aetna, as well as specialized firms like MultiPlan.
The insurers pitch MultiPlan’s tools as a way to save employers money when their employees see a medical provider outside the plan’s network. The bills for these out-of-network providers are subject to negotiation, and insurers often send the claims to MultiPlan, which recommends an amount to pay.
Both MultiPlan and insurers typically collect a fee from the employer based on the size of what they call the “savings” — the provider’s list price minus the recommended payment. Lower payouts can mean bigger fees. Meanwhile, patients can be stuck with the unpaid balance, The Times investigation found.
Companies are legally obligated to ensure the insurers act in employees’ best interest, and a closely watched lawsuit filed last year could force them to become more active monitors.
A worker at Johnson & Johnson sued the company, saying it had failed to adequately oversee the administrator of its drug benefits plan. By paying too much — in one instance, $10,000 for a drug that was available for as little as $28.40 — the company had allowed the administrator, the Cigna subsidiary Express Scripts, to profit at employees’ expense, the suit claimed.
In a statement, Johnson & Johnson called the claims “meritless” and said, “We are committed to our employees and seek to provide the best coverage.”
A small industry of consultants, lawyers and data analysts has arisen to help companies step up monitoring and negotiate better deals with the insurers administering their plans.
Kraft Heinz last year sued Aetna, claiming the insurer improperly paid claims and kept millions in undisclosed fees. Trustees for a union health plan in Massachusetts sued Blue Cross Blue Shield of Massachusetts in 2021, accusing the insurer of repeatedly overpaying claims and then charging a fee to correct the errors. And in January the Department of Labor sued Blue Cross and Blue Shield of Minnesota, claiming the company forced multiple employers to pay medical providers’ tax bills without disclosing the charges.
(Aetna declined to comment on the case but said it worked with employers “to facilitate access to quality, affordable and convenient health care.” Blue Cross and Blue Shield of Minnesota said the government’s allegations were “without merit” and “based on unsupported interpretations” of the law. A court dismissed the Massachusetts case.)
The success of the employers’ efforts sometimes hinges on an unsettled legal question: Does a company’s duty to act solely in its employees’ best interest extend to insurers and firms like MultiPlan? Courts have reached different conclusions.
MultiPlan has argued that the answer is no, and in March a federal judge in California agreed, dismissing the company from a lawsuit filed by medical providers. The case against the insurer, Cigna, was allowed to go forward.
In pitches to investors, MultiPlan has highlighted its murky legal obligations. Because the firm doesn’t provide insurance or pay claims, it noted in a public filing, “we generally are not directly regulated and face significantly lower levels of regulatory complexity.”
Chris Hamby is an investigative reporter for The Times, based in Washington. More about Chris Hamby
Our Coverage of Congress
Here’s the latest news and analysis from capitol hill..
Joe Manchin: The conservative West Virginia Democrat who has said he will retire at the end of his term switched his party registration to independent , leaving open the possibility of another run for office.
Departing House Members: A wave of House retirees from both parties, including committee chairs and rising stars, say that serving in Congress is no longer worth the frustration .
Cuellar Investigation: The House Ethics Committee has launched an investigation into Representative Henry Cuellar, Democrat of Texas, over allegations that he accepted bribes and committed misconduct in office.
Border Deal Fails Again: Senate Republicans blocked a bipartisan border enforcement bill for a second time this year. The vote amounted to a political trap laid for Republicans by Senator Chuck Schumer, the majority leader.
Noncitizen Voting Law: The House passed legislation that would undo a District of Columbia law allowing noncitizens to vote in local elections, part of a broader G.O.P. bid to amplify false claims of widespread illegal voting by immigrants.
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Business Starter, Business Standard, and Business Plus plans can be purchased for a maximum of 300 users. There is no minimum or maximum user limit for Enterprise plans. Google Workspace customers may have access to additional features for a limited promotional period. Google Workspace provides flexible pooled storage per user that is shared ...
Google Workspace offers subscription options for individuals, small businesses, large organizations, and schools. Compare editions in these categories: Business —Productivity suites for businesses with 1-300 users. Education —Discounted suites for qualifying educational institutions. Enterprise —Adds premium security and advanced controls ...
1 year or more of service for licenses purchased at the start of the contract. To choose a multi-year plan, contact a Google Sales representative. Billing cycle. Monthly. Monthly or yearly. Monthly payment. Business Starter: $7.20 USD per user. Business Standard: $14.40 USD per user. Business Plus: $21.60 USD per user.
Find the right plan for your business. Try it free for 14 days. Choose the Google Workspace edition that best fits your business. Business Starter. $6 USD. per user / month, 1 year commitment. Or $7.20 per user / month, when billed monthly. Custom and secure business email. 100 participant video meetings.
Pricing for Google Workspace Business plans. Google Workspace Business Starter: $7.20 per user paid monthly or $72 per user paid annually. Google Workspace Business Standard: $14.40 per user paid ...
Business Plus; Flexible Plan (price per user, per month) $7.20 USD* $14.40 USD* $21.60 USD* Annual/Fixed-Term Plan (price per, user per month)** $6 USD* $12 USD* $18 USD* Feature highlights: Professional productivity suite with 30 GB pooled storage per user: Enhanced suite with 2 TB pooled storage per user:
First in our updates, we are introducing an Annual Plan option for all editions available through our website. Annual Plans are great for organizations ready to commit to a longer-term agreement, and allow customers the ability to lock in the lowest per-user price. Second, we are increasing the price of Flexible Plan subscriptions.
Final cost negotiations to purchase Google Workspace must be conducted with the seller. Google Workspace plans start as low as $6 per user per month for Business Starter, $12 per user per month for Business Standard, and $18 per user per month for Business Plus. Pricing information was last updated on November 14, 2022.
For more information, see the benefits of Google Workspace. Google Workspace includes the following core SKUs: Business Starter. Business Standard. Business Plus. Enterprise Standard. Enterprise Plus. Enterprise Essentials (only available as an ANNUAL_MONTHLY plan) Google Workspace also includes these add-on SKUs:
Pricing for G Suite Enterprise Edition customers will not change. For existing G Suite Basic or Business edition customers on the Flexible Plan, the new list prices will go into effect on April 2, 2019*. For customers on the Annual Plan, the new prices will go into effect the first time their plan renews on or after April 2, 2019*. These ...
Business Starter. At about $6 per month, per user, this is the most affordable business option for Workspace. This plan allows you to have up to 100 participants in video meetings and comes with: 30GB of cloud storage for each user. Management and security controls. Google's Standard support plan.
The Business Standard Plan costs twice as much — $12/user/month. And, it comes with a total of 2TB storage. According to Google, this is their most popular package. If you are looking for more storage space, then the Business Plus Plan is something you can consider. It is priced at $18/user/month and has 5TB of storage.
Business Standard - $14.40 per user per month or $12 per month for an annual plan*. Business Plus - $21.60 per user per month or $18 per month for an annual plan. Enterprise - variable based on business needs. *- If you commit to a year of Google Workspace with Name.com, you can also enjoy up to a 50% discount on these plans. Check pricing.
Pricing Overview. Google Workspace has 4 pricing edition (s), from $6 to $18. Look at different pricing editions below and read more information about the product here to see which one is right for you. Business Starter.
Google Workspace offers four main plans: Business Starter, which costs $6/user/month and comes with 30 GB of Google Drive 'pooled' storage (meaning that it can be shared among all your users); Business Standard, which costs $12/user/month and provides 2 TB of pooled storage and extra security and admin controls; Business Plus, which costs $18 ...
Compare editions in these categories: Business —Productivity suites for businesses with 1-300 users. Education —Discounted suites for qualifying educational institutions. Enterprise —Adds premium security and advanced controls for unlimited users. Essentials —Productivity and collaboration tools without Gmail.
I asked what the new changes meant for my current GSuite Business Plan - $12/user for Unlimited (5 user minimum) and if i was forced to upgrade. He said: " You may stay on your current plan ($12/user) and maintain unlimited storage with 5 users or more.
Ability to mix and match on more license flexibility. Unlimited Storage for E3 and above with at least 5 users. No need for 3rd party syncing software between GSuite and Outlook on Windows. Seems like MS is pouring more money into the product than Goofle. Take a look at their respective release calendars.
The monthly cost of Duo, a plan that lets two people split a premium plan, is rising by $2, to $16.99. The family plan is increasing prices by $3 to $19.99 per month.
In July of last year, Spotify increased the price of its Individual offering to $10.99, its Duo plan to $14.99, its Family plan to $16.99 and its Student offering to $5.99. The company said the ...
Gas prices hit highest level since December due to cracked pipe. The pipeline's operator warns of "big consequences" for supply as plans to repair the fracture get under way aboard a key platform ...
Here are the changes: Premium plan: $10.99 to $11.99. Duo plan, for two users in the same household: $14.99 to $16.99. Family plan, for up to six users in the same household: $16.99 to $19.99. The ...
Similar to G Suite, all Google Workspace plans provide a custom email for your business and include collaboration tools like Gmail, Calendar, Meet, Chat, Drive, Docs, Sheets, Slides, Forms, Sites, and more. For additional details, visit our plans and pricing page.
Option 1: Use Frontline Starter for unlimited users with 5 GB of storage per user. Drive storage and online collaboration with Gmail and Google Docs, Sheets, and Slides. Secure, reliable video conferencing from anywhere. Simple, efficient chat collaboration in groups or one-on-one. Easy meeting and event scheduling.
The music streaming giant said on Monday that it is adjusting the prices for all of its premium plans, with the individual plan rising by $1 per month to $11.99, the duo plan rising by $2 per ...
Both candidates' trade plans focus on tariffs on imported Chinese goods even as economists warn they could lead to higher prices. By David J. Lynch June 3, 2024 at 6:00 a.m. EDT
Automatic. for Google Workspace. about Google Workspace. Promotional pricing plans apply to EMEA only. Other regions may vary. 2 Refer to the Voice rate card for a complete list of for your Voice number. Learn how . Our sales team now uses Google Voice to call and text customers from their smartphones, tablets, and the web.
Trustees for a union health plan in Massachusetts sued Blue Cross Blue Shield of Massachusetts in 2021, accusing the insurer of repeatedly overpaying claims and then charging a fee to correct the ...
G Suite Business edition. G Suite Basic edition. G Suite legacy free edition. Start your free 14-day trial today. Professional email, online storage, shared calendars, video meetings and more. Start your free Google Workspace trial today. Use these tables to compare features in G Suite editions. To compare features in the new Google Workspace ...
Despite the OPEC+ cuts, equivalent to about 5.7% of global crude supply, and ongoing tensions in the Middle East, global oil prices have fallen by about 10% since hitting a five-month high in ...