I Built a $600 App That Replaced a $200/Month SaaS -- And It's Better

Every small business faces the same question: Should I pay for that SaaS tool or build something myself?

The SaaS costs $50-200/month and does 80% of what I need. A custom build costs $600-2,500 upfront but does exactly what I need. Which is cheaper?

I’ve done both. Here’s the framework I use to decide.

The Problem: SaaS Bleeds You Slowly, Custom Hits You Upfront

The SaaS math looks easy: $50/month is nothing. But over 3 years, that’s $1,800 – and you still don’t own the software. If they raise prices, change their features, or go out of business, you’re back to square one.

The custom math looks hard: $1,500 upfront is a lot. But you own it. You can modify it. Add features. Sell access to others. There’s no monthly bleed.

The real question isn’t which is cheaper. It’s which problem are you solving?

When Custom Wins

In my experience, custom beats SaaS when:

1. Your workflow doesn’t fit the SaaS assumptions.

Most SaaS tools are built for US/European businesses with standard processes. If your business operates differently, you’ll spend more time working around the SaaS limitations than you would building a custom tool.

Example: A delivery management tool built for the US assumes zip codes, UPS/FedEx integration, and credit card payments. An Algerian business needs wilayas, Yalidine pricing, and COD tracking. The SaaS covers 30% of the use case. Custom covers 100%.

2. The SaaS has no competitors.

If there’s one tool that does what you need and it costs $200/month, you have no leverage. They can raise prices. They can remove features. You can’t switch because there’s no alternative.

Building a custom tool removes that dependency. Even if you don’t use it forever, having the option changes the negotiation.

3. The tool is core to your business.

If the software IS your business (you’re a logistics company using a delivery tool), owning it is a strategic advantage. If it’s just a convenience (you use a project management tool), SaaS is fine.

4. You have 3+ people who need it.

$1,500 custom tool / 3 people = $500 per person. Over 2 years, that’s $21/person/month. Cheaper than most SaaS and it does exactly what you need.

When SaaS Wins

SaaS is better when:

1. The problem is generic. Email, file storage, accounting – these are solved problems with mature tools. Don’t build your own email server.

2. Switching costs are low. If you can move to a competitor in a day, SaaS is fine. If you’re locked in, custom might be better.

3. The vendor has a free tier you’ll never outgrow. Supabase free tier. Cloudflare free tier. Google Workspace free tier. If the free tier covers your needs forever, don’t build.

4. You don’t have development skills or access to a developer. Custom only works if you can build or hire.

A Real Example

My delivery management tool cost $600 to build (I built it myself). It calculates delivery prices for all 58 wilayas, tracks orders, and shows profit margins. The closest SaaS alternative costs $150/month and doesn’t include Algerian wilaya pricing.

Over 2 years:

• SaaS: $150 x 24 = $3,600 (and I’d still need workarounds for wilaya pricing)
• Custom: $600 (one-time) + $0/month hosting (Supabase free tier)

The custom tool paid for itself in 4 months. And I own it.

How You Can Decide

The 3-question test:

1. Is there a SaaS that does 80%+ of what I need without workarounds? → Yes: buy it. No: custom.
2. Will I still need this tool in 2 years? → No: buy it. Yes: consider custom.
3. Can I build or hire someone to build it for under $2,500? → No: buy it. Yes: consider custom.

If the answers are “no, yes, yes,” custom is probably the right call.

Related: Supabase Free Tier

##s

Q: What about maintenance?

A: Custom tools need maintenance. Budget 10-20% of build cost per year for updates, bug fixes, and hosting. Still usually cheaper than SaaS.

Q: What if my needs change?

A: Custom tools are easier to change than SaaS. You modify what you need. No feature requests, no waiting for the roadmap.

Q: How do I find a developer for a custom tool?

A: Look for someone who’s built similar tools and understands your industry. A generic web developer might not know Yalidine pricing, COD workflows, or Algerian payment systems.

Q: What’s the risk of building custom?

A: The biggest risk is building the wrong thing. Start with the smallest version that solves your problem. Don’t build features you might need someday.

Related: Build Your Own Tools – why I build instead of buy. Services – what I charge for custom tools.