Marg Grade.us

GRADEUS DOUBLED MY FEES AND CHANGED THEIR TERMS TO JUSTIFY THEIR ACTIONS.

When I signed up for Gradeus, in 2018/2019, I thought it would be a great platform for my agency, and because of their white label feature, it would allow me an opportunity to build a Review Management SaaS platform on their platform.  

I built a branded website and purchased their agency plan starting at $200 which provided for 10 licenses which worked out to $20 per license.  I invested in a nice website and integration and began my journey white label their platform and brand it under my own brand to begin reselling their services starting at $49/month, up to $97 a month, to start ramping up my SaaS business.  I started to ramp up my business selling Review Management.

Then on July 18, 2019, they emailed me saying that they were increasing my fees from the base $200 to $400 minimum which would translate from $20 per license seat to $40 per license seat, a 100% INCREASE in cost… but because I was a long-time client, I would get a 10% discount.  That’s an embarrassing discount for a “long-term client”. After I complained about this increase and the short notice (30 days),, they advised me that I in fact received this email in error and that I was on the correct pricing plan. 

Fast forward 7 months, my yearly renewal of $440 for my white label branding fee was just charged (also without any notice). This was simply a recurring charge I completely forgot about.  There was literally NO additional work for them and it was just a renewal charge.

Then 4 days later I received a NEW PRICE INCREASE email advising me that they were now doubling my license fees from $20 to $40 effective April 1st (next 30 days).  As a SaaS provider, I charge my clients on the low end $49, which after my fees would leave me with a few bucks only. I would now be earning $7 per client per month, reducing my revenues by more than 50%, but again because I was a “long-term client”, I would get a 10% discount.  Whereas Gradeus is trying to double their revenues by 100% in 1 month.  

I was not happy about this pricing fee change and the timeline, so I advised them before April 1st that I would like to cancel my account and because of the change in pricing terms, and I also would like my white label dashboard fee refunded that I was just charged for 1 month prior,  as I will no longer be a client.   

I thought it was a very fair request.  Gradeus changed their pricing which forced my SaaS out of operations, as a result I would be cancelling, and there I would simply like my dashboard fee refunded.  

I was shocked when they responded back saying:
“I tried to get approval for you based on the circumstances but since the creation of a white label dashboard is a fixed rate for the company which is non-refundable I was not able to have that approved. “

I responded back trying to clarify that this was a renewal charge, not a new creation.  There was no work involved.  

“Hi Tony

Perhaps your manager is not understanding the context.  This was a renewal charge. If this was for the initial dashboard creation and setup, I would understand and accept.

However, this was simply a recurring fee which incurred no additional work or costs for you.  

Had Gradeus not  changed the license fees/terms with me abruptly, I would not be in this situation. So once again, I am asking for a refund.  I am trying to be fair about this.. I paid for my renewal in good faith, but then Gradeus changed it's terms a few days later.   No one would see this as fair. 

So, please simply refund this amount, or else I will be forced to take further action and escalate this in a few different ways which will result in unnecessary headaches for your company.  I've been on your side before running a SaaS company so I know what kind of impact one person can make if vocal, loud, and consistent enough.  Trust me.

If you had not changed your terms, I would not be asking for a refund.   Is it really worth the headache for $440? “

We went back and forth a few times, where I kept trying to explain that as a result of their actions, they changed my fees, that’s why I was cancelling, then they Tony then fell back on Terms stating:

“https://www.grade.us/home/tos It does explicitly state, "All white-label dashboards are charged at time of setup and are non-refundable. You are responsible for all charges incurred on the annual white-label dashboard.". Despite this, I still did attempt to have this waived considering the current state of things but I was not approved for sure an exception. I know I may be repeating myself here but I don't have any additional input to provide. “

Again, this is laughable since Gradeus also sneakily changed their terms of service without informing anyone adding new terms completely in their favor and I never had seen or agreed to these new terms.  I have records of the Terms from 2019, and there is no reference to any of the stuff they are referencing or non-refundable.  

I responded back with:

“I was waiting for you to refer to the terms.  FYI, I never agreed to those terms. Those are relatively new and this was changed after I signed up and I was never notified or made to agree to it.  Therefore it holds no merit and it does not make it retroactive. See attached terms I signed up for and agreed to. “

Summary:

Overall,  it seems that Gradeus only cares about the money lately and not their clients. They know that agencies and other companies white label their solution and even so, they made price increase decisions without any regard for their clients.  They wanted to double my license fees with only 1 months notice. What kind of company does that? A GREEDY company. 

And for my $440, white label dashboard fee.  They refused to refund my $440. It’s not a large amount of money.   This white label fee is paid because I expected to use it, and when I complained about it, they referred to TERMS that I’ve never agreed to.  Wow.  

Gradeus… for a review management company… here is my review.  I am very displeased with how you handled this issue. You turned a raving fan into an angry ex-customer.  

Fortunately, I no longer need Gradeus as I’ve found a solution that is SIGNIFICANTLY cheaper (no more license fees) and provides me with everything I need.  

I was a happy customer until things starting changing at Gradeus and they decided to make a money grab and increase their fees. This company arbitrarily increases their license fees without much notice, and then also changes their terms to justify why they can't issue a refund for prepayments for white labeling their dashboard.It seems that ever since this company merged/rebranded as Traject, they have been making bad moves so they are literally doubling license fees to make more money at the cost of the SMB's the claim to be supporting. If you sign up with them, expecting to pay a certain license fee, be forewarned that they may change it on you in the future and will not refund you anything you prepay. Bait and switch. Shame on you Gradeus, Gradeus.com and now Traject. Money is more important than fairness and customer satisfaction.