Pricing site licences
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Has anybody had any experience with this, I guess from either side of the table i.e. as a buyer or seller. Over recent months, we've been getting more and more enquiries about site licences for Awasu. For example, I'm talking with one company now that's looking for around 20,000 (!) seats. After talking to a few people, the consensus seems to be "whatever you think they will pay" but where do you start? The other main comment was that the bulk of money is usually made via support agreements. I wish I knew more sales-type people but being a techie, I don't have too many of them in my address book :-) :rolleyes:
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
One thing I didn't see you mention, but I've seen companies do, is a tiered site license, depending on the # of licenses they need. Marc Pensieve
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Has anybody had any experience with this, I guess from either side of the table i.e. as a buyer or seller. Over recent months, we've been getting more and more enquiries about site licences for Awasu. For example, I'm talking with one company now that's looking for around 20,000 (!) seats. After talking to a few people, the consensus seems to be "whatever you think they will pay" but where do you start? The other main comment was that the bulk of money is usually made via support agreements. I wish I knew more sales-type people but being a techie, I don't have too many of them in my address book :-) :rolleyes:
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
We normally work out how many versions they would buy singly, and charge ~80% of that. Then we neither of us have to worry about them ripping our software off for display our data. But the most "seats" I've had have been about 8... And as our data-acqisition software requires a $100k - $500k "dongle", we're fairly friendly about the display software! In short, ingnore me completely! Iain.
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We normally work out how many versions they would buy singly, and charge ~80% of that. Then we neither of us have to worry about them ripping our software off for display our data. But the most "seats" I've had have been about 8... And as our data-acqisition software requires a $100k - $500k "dongle", we're fairly friendly about the display software! In short, ingnore me completely! Iain.
There's no way we can offer a discount of only 20%. From the sound of things, they *will* be using all the seats, it's not going to be an adhoc thing. Our product is USD $59 so the normal price would be almost USD 1.2 million :-) So what percentage of that do we target? What I was really hoping for was someone who had experience buying site licences for Office or Windows or Norton or something like that.
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
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One thing I didn't see you mention, but I've seen companies do, is a tiered site license, depending on the # of licenses they need. Marc Pensieve
Marc Clifton wrote:
One thing I didn't see you mention, but I've seen companies do, is a tiered site license, depending on the # of licenses they need.
Yah, but the underlying question still remains: how you price each tier?
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
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Has anybody had any experience with this, I guess from either side of the table i.e. as a buyer or seller. Over recent months, we've been getting more and more enquiries about site licences for Awasu. For example, I'm talking with one company now that's looking for around 20,000 (!) seats. After talking to a few people, the consensus seems to be "whatever you think they will pay" but where do you start? The other main comment was that the bulk of money is usually made via support agreements. I wish I knew more sales-type people but being a techie, I don't have too many of them in my address book :-) :rolleyes:
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
I have found quite a large variation. Some the discounts are in the order of 80% once you get to say 500 seats. Others the maximum discounts are in the 25% range. The BIG driver is how much support per seat are you expecting and agreeing to support. The big discounted options, you provide none, the company has a single contact who is the person that really does the day to day end user support. "Simplicity is more complicated than you think. But it’s well worth it” (Ron Jeffries)
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Has anybody had any experience with this, I guess from either side of the table i.e. as a buyer or seller. Over recent months, we've been getting more and more enquiries about site licences for Awasu. For example, I'm talking with one company now that's looking for around 20,000 (!) seats. After talking to a few people, the consensus seems to be "whatever you think they will pay" but where do you start? The other main comment was that the bulk of money is usually made via support agreements. I wish I knew more sales-type people but being a techie, I don't have too many of them in my address book :-) :rolleyes:
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
One thing to keep in mind is that you would now have 20,000 more installs to support. I have heard that some people do not recommend any discount since you will be adding alot of possible support costs. Others have said that you should offer at least a 50% discount. I think that whatever you decide to do, you definately need to include a suport contract (typically about 20% of the cost) to the sale. This way they can always get the latest version from you and you can get some renewable income. Steve Maier, MCSD MCAD
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There's no way we can offer a discount of only 20%. From the sound of things, they *will* be using all the seats, it's not going to be an adhoc thing. Our product is USD $59 so the normal price would be almost USD 1.2 million :-) So what percentage of that do we target? What I was really hoping for was someone who had experience buying site licences for Office or Windows or Norton or something like that.
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
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Taka Muraoka wrote:
What I was really hoping for was someone who had experience buying site licences for Office or Windows or Norton or something like that.
You can probably find pricing information on MSes website somewhere.
dan neely wrote:
You can probably find pricing information on MSes website somewhere.
Not really. I've had a look around at a lot of web sites but it's invariably "please contact us for pricing" :-)
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
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Has anybody had any experience with this, I guess from either side of the table i.e. as a buyer or seller. Over recent months, we've been getting more and more enquiries about site licences for Awasu. For example, I'm talking with one company now that's looking for around 20,000 (!) seats. After talking to a few people, the consensus seems to be "whatever you think they will pay" but where do you start? The other main comment was that the bulk of money is usually made via support agreements. I wish I knew more sales-type people but being a techie, I don't have too many of them in my address book :-) :rolleyes:
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
Maybe you could give them an unrestricted corporate license for say 3000 times the cost of a single license. That'd seem fair I guess. Regards, Nish
My blog : Nish’s thoughts on MFC, C++/CLI and .NET
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There's no way we can offer a discount of only 20%. From the sound of things, they *will* be using all the seats, it's not going to be an adhoc thing. Our product is USD $59 so the normal price would be almost USD 1.2 million :-) So what percentage of that do we target? What I was really hoping for was someone who had experience buying site licences for Office or Windows or Norton or something like that.
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
Taka Muraoka wrote:
Our product is USD $59
Ah, so 3000 * 59 = USD 177K Oh boy! You could take the rest of the year off! Regards, Nish
My blog : Nish’s thoughts on MFC, C++/CLI and .NET
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Marc Clifton wrote:
One thing I didn't see you mention, but I've seen companies do, is a tiered site license, depending on the # of licenses they need.
Yah, but the underlying question still remains: how you price each tier?
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
Might be worth finding out how other (successful) companies, that have a product whose per-seat pricing is similar to yours, set up their pricing levels and/or tiers. My first data source would be your own sales records. For example, how many times have you sold 20/50/100/200/500/1000/2500/5000/etc. seats at one time (and at what discounts, if any). Assuming that you have such data, you might be able to come up with an initial pricing structure to work with. Peace! -=- James
If you think it costs a lot to do it right, just wait until you find out how much it costs to do it wrong!
Tip for new SUV drivers: Professional Driver on Closed Course does not mean your Dumb Ass on a Public Road!
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One thing to keep in mind is that you would now have 20,000 more installs to support. I have heard that some people do not recommend any discount since you will be adding alot of possible support costs. Others have said that you should offer at least a 50% discount. I think that whatever you decide to do, you definately need to include a suport contract (typically about 20% of the cost) to the sale. This way they can always get the latest version from you and you can get some renewable income. Steve Maier, MCSD MCAD
5 - That is an excellent point; one that I never would have considered for that number of seats. In light of that, a $1+ million price tag does not seem so bad. Peace! -=- James
If you think it costs a lot to do it right, just wait until you find out how much it costs to do it wrong!
Tip for new SUV drivers: Professional Driver on Closed Course does not mean your Dumb Ass on a Public Road!
DeleteFXPFiles & CheckFavorites (Please rate this post!) -
Has anybody had any experience with this, I guess from either side of the table i.e. as a buyer or seller. Over recent months, we've been getting more and more enquiries about site licences for Awasu. For example, I'm talking with one company now that's looking for around 20,000 (!) seats. After talking to a few people, the consensus seems to be "whatever you think they will pay" but where do you start? The other main comment was that the bulk of money is usually made via support agreements. I wish I knew more sales-type people but being a techie, I don't have too many of them in my address book :-) :rolleyes:
The two most common elements in the universe are Hydrogen and stupidity. - Harlan Ellison Awasu 2.2 [^]: A free RSS/Atom feed reader with support for Code Project.
At 59 bucks a pop you should be offering around an 85% discount when you hit 20,000 seats. That means $8.85 or so for each seat, which should yield around $177,000. Of course you'd better charge extra for support too, and make sure they are willing to have a single point of contact for all support requests! -- Edward Livingston (aka ExtraLean) -- "I still maintain that seeing a nipple is far less disturbing than seeing someone get their brains blown out." -- Chris Maunder