You just got hit with a huge price increase. You didn’t see it coming. And with no time to switch providers, you feel like you have no choice but to renew.
So, what now?
Before we talk about how to stop these price hikes, let’s get real about why they happen in the first place.
Why do background check providers raise prices?
The hard truth about the background screening industry is that most providers are not innovating. They aren’t finding new ways to provide value to you. From the beginning, Yardstik’s approach has been to continually build technology that is incredibly useful and provides strong ROI for our customers—and that makes a huge difference when talking about price hikes.
For many legacy providers, raising prices always comes without any extra value in return. Plus, these providers run on outdated technology that requires tons of manual work. Every background check goes through layers of labor and aging technology that get more expensive to maintain every year.
Instead of fixing the problem, they pass those costs onto you. This is often why price hikes happen again and again. Their business model needs them.
“I can’t tell you how many companies have come to us saying, ‘We just got our renewal notice and our price has gone up by 50%!’ It’s a pattern across the biggest legacy players in the industry.”
– Anthony Ostrowski, VP of Revenue, Yardstik
That’s not the case for every provider. Some have modern, efficient systems that don’t force them to squeeze customers for more money every year just to keep up. The better providers focus on creating value first. If they ever raise prices, it’s because they’re delivering something genuinely worth paying more for.
So, how do providers pull off these price hikes? Let’s break that down next.
How do providers sneak in price hikes?
Legacy background check providers have a couple of sneaky ways of raising prices:
- They bake price increases into contracts and hope you don’t notice.
- The provider offered you a really low price point but it is only good for one year. So when the renewal comes around you’re stuck with a price substantially higher than what you initially signed up for.
- They wait until the last minute to tell you, so you don’t have time to switch.
- Your team knows the platform. Your ATS is integrated. And switching providers can be a huge headache. Background check companies know all this, which is why some of them wait until you’re locked in before raising prices.
But not every provider operates this way. Some providers rarely (or never) raise prices. And when they do, it’s tied to clear improvements and better outcomes—not vague justifications or “cost of doing business” excuses.
If your provider isn’t upfront about their pricing model, assume they’ll raise prices when you least expect it. And if this has happened to you, you do have options.
What to do if your provider raises your prices
Your provider just raised your rates. Your first instinct might be to shrug and accept it—after all, what choice do you have? But you do have options. And you don’t have to just go along with it.
Here’s what to do.
1. Don’t stand for it
They are hoping you say nothing and just pay the higher price. Don’t make it easy for them. Start asking questions.
- What’s changed in my service to justify this increase?
- How is this making my experience better?
- If I’m running more checks, shouldn’t my price per screen be lower, not higher?
They don’t expect you to push back. But asking the right questions forces them to justify the increase—putting you back in control.
2. Check your invoice
If your provider is using shady tactics on price increases, chances are that they’re sneaking in some hidden fees as well. And we’re not talking pocket change—these fees can double the cost of a background check.
Take a close look at your latest invoice. Many providers bury extra charges under vague names that make them seem like unavoidable pass-through costs. But in reality, these are often just profit-padding fees that you never agreed to.
If you haven’t checked your invoices recently, now’s the time.
3. Find a new provider
Maybe your provider makes a concession or two. Great. But do you really want to have this same fight again next year?
For providers that operate this way, price hikes aren’t a one-time thing—they’re a pattern. If you don’t want to keep having this fight over and over again, the solution is simple: work with a provider that delivers value first and foremost.
That’s why companies switch to Yardstik. Our technology helps our customers save money and break free from the outdated systems that cause a never-ending cycle of frustration.
We’ve never raised prices on our customers—but we have kept developing useful products that deliver great ROI. And when our customers win, so do we. So, if you’re tired of playing this game, let’s talk.