Sage 100

Consulting Estimates Under Subscription Pricing Under perpetual pricing many consultants calculated ballpark consulting estimates as a multiple of the product price, starting with 1X price and using higher multiples for more complex modules, such as JobOps. This is not what the final proposal would be, but is a starting point in the initial discussions. This is where the prospect usually lays their cards on the table and either folds ""I thought it would be more like $5,000"" or indicates it sounds reasonable and we continue with the process. Has anyone devised a similar ballpark calculation based on subscription pricing? I can approach what we used to calculate by doing 2X the initial annual investment.

Umm...has the value of an implementation changed just because the publisher's pricing model changed? The off-the-virtual-shelf software is one of the tools we use to create a system that supports the customer's needs. That's what we should be pricing.

I don't do anything differently. I had a 100c spend 15k on subscription and 5x on consulting. I find the $ really depends on the situation (complexity, personnel, timeframe, scope) more than anything. I focus more on the solution rather than how Sage bills. The best customers - by far - are those right in the wholesale distribution sweet spot where I can tell stories of 15 customers exactly like them that I've helped recently. The further away from SOPOIM the less of a premium I am able to charge.

I haven't done it recently, but I have used the three-year subscription with the up-front fee as the 1x number in the past. If I remember correctly, I believe I used 1.5x as the low number. That should give you that quick ballpark estimate.

Also, consider using options. I've found that works very well to combat sticker shock so long as you clearly define what's included at each option. In situations where you may have a competitor giving a price I remind the customer that I'm quoting a fixed price for a defined scope. In some cases, I'm still running into ""bundles of hours""guess pricing and I make a brief summary of exactly what a bundle of hours is (a guess) and isn't (a firm price).

Thanks, this has been very helpful. The purpose was to quickly arrive at a preliminary ballpark number in order to determine real interest, but I am now looking at this in terms of ""consulting modules"", similar to the options @WayneSchulz mentioned. This breaks the project and process into smaller pieces that are easy for the customer to handle, and they can all be quoted as fixed prices.

I use 3-yr TCO for all work because all of this ends up being a mix n match regarding payment forms. It fits in the form of attempting some sort of roadmap for the customer regarding not only cost but follow-on intentions and of course estimates on returns and performance. Within that, the fixed-fee implementation bundle options work well.

Interesting how we are all similar.