General Consultant Discussion

Any thoughts on whether to try to push 100 customers to 100cloud asap so as to avoid the April price hike? I don't even know if all 100 users qualify for migration promotions as it seems each month the list of who qualifies changes based on when they are up for renewal.

Soooooo Confusing!!!

I need a translator.

I have a current quote for 100c. It includes the user subscription cost and an upfront fee. If the customer accepts the quote prior to April 4th, will the user subscription price increase 40% on the 2019 one year anniversary date?

I have to think yes, Wayne. Doug, I'm thinking the rate locks in once a year? Partner webcast next week covering the price changes. https://sagena.webex.com/mw3100/mywebex/default.do?nomenu=true&siteurl=sagena&service=6&rnd=0.18799604132887415&main_url=https%3A%2F%2Fsagena.webex.com%2Fec3100%2Feventcenter%2Fevent%2FeventAction.do%3FtheAction%3Ddetail%26%26%26EMK%3D4832534b00000004550854fe5af0431b58324d4fe80fdd894a5d32004bd9f9e63ba175035e90b15a%26siteurl%3Dsagena%26confViewID%3D87892006748040526%26encryptTicket%3DSDJTSwAAAATZ7ZKjsNzpLQcGi8tHVIMxqu6BQUf-Uc_dXYeEY4WmSg2%26https://sagena.webex.com/mw3100/mywebex/default.do?nomenu=true&siteurl=sagena&service=6&rnd=0.18799604132887415&main_url=https%3A%2F%2Fsagena.webex.com%2Fec3100%2Feventcenter%2Fevent%2FeventAction.do%3FtheAction%3Ddetail%26%26%26EMK%3D4832534b00000004550854fe5af0431b58324d4fe80fdd894a5d32004bd9f9e63ba175035e90b15a%26siteurl%3Dsagena%26confViewID%3D87892006748040526%26encryptTicket%3DSDJTSwAAAATZ7ZKjsNzpLQcGi8tHVIMxqu6BQUf-Uc_dXYeEY4WmSg2%26

The wording says existing 100c stay on this price after April 3, 2018

And doesn't that super-airtight-never-change-we-pinky-promise EULA limit rate increases to 10% in any event?

Scary. The customer is asking what the cost will be going forward. I am afraid to go on record with an amount.

It is cheaper to wait for the 40% increase on the quote I have in front of me. Five users $2700 + $2500 upfront fee + $720 Timecard + $600 Payroll = $6520 ($4020 annual first year). If they wait until April then the users increase by $1080 (40% x $2700), and the overall total will be $5100 ($3780 users ($2700 + $1080 increase) + $720 Timecard + $600 Payroll). So they will save $1420 by waiting until April to sign ($6520 - $5100) . That is messed up.

Cheaper until year 3, I think. If they are staying for 3+ years then the upfront fee is less expensive. However, that presumes Sage doesn't change each price list by different percentages -- ie keep the new pricing the same but start raising that price list with the upfront fee.

Subscriptions are a deal with the devil, to be sure.

That is for sure. In a couple of years when these five user customers with only AR, AP, GL PR, and TC are paying six, seven, eight grand a year, they will be changing to Quickbooks. 30 user systems are $20K+ annually and rising.

And in five years I hope to be retired.....

Right behind you, Jeff! Yes, QB moved to subscription too, so I imagine there will be inflation across the board for a while. But this stuff has been super cheap for years.

QB is moving quickly to subscription. They also email every two years with a forced upgrade to the latest QB version which for just pure accounting is around $300-$400. Payroll for two is about $450 a year. The days of $99 QB are long gone.