Re: Fair software pricing models

["Paul Raulerson" <praulerson@xxxxxxxxxx>]

----- Original Message -----
From: "Brad Jensen" <brad@elstore.com>
To: <midrange-l@midrange.com>
Sent: Thursday, November 01, 2001 9:02 AM
Subject: Re: Fair software pricing models


> > Good Lord - why do you need a key at all? Do you *really* think
> that large
> > shops are
> > going to try to stiff you over a support fee, or that small
> shops are really
> > going to have
> > so many users?
>
>
> MIS managers and personnel change, and they don't have us at the
> top of their attention list. A software key warns them if
> something changes that shouldn't.
>
> > If you do, then think out of the box.
> >
> > (1) Visit the site if you are afraid it is a large site. Get the
> facts. Then
> > set up a charge per
> >       incident, or per hour for support with them.
>
> Do you realize how resistant people are to these variable
> "wing-it" pricing models?
>
> Besides which, 'visit the site' ? Just get on an airplane and go.
> Who pays for this? A couple of visits a year would cost more than
> our maintenance.
>

Obviously, I am used to OS/390 maintenance costs. If the customer is paying
you big $$
per year in maintenance, you had better get out and develop a personal
one-on-one
relationship with them, including at least one or two site visists. You can
usually schedule them
at the same time you are visiting prospects in the same area. If you don't,
sooner or latter
that customer is going to be trying to find a way to get rid of you.

If they are too small for a visit, what are you doing charging them big
bucks?




> > (2) Get the facts, if the site has a large machine because they
> have to
> > process something really
> >       fast, but only a small number of users, charge
> appropriately.
>
> Again, there will be howling and screaming. It won't work.
>

It works in a LOT of places, and for a LOT of companies. Just saying it
won't work is really
not true.



> > (3) If a site has multiple machines running the same product,
> charge support
> > by the number of users,
> >       or more likley, do #1 above. Let the customer decide what
> a support
> > incident is worth.
>
> We discount software and maintenance for multiple machines.
>

A good point in your favor. :)

>
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