Original Message:
Sent: 04-14-2023 10:20
From: Bob Pfahnl
Subject: EBizCharge Partnership with Sage has ended
First, Sage should bow to MDs who have kept this product alive. If not for 3rd party solutions, Sage 100 could not compete in the marketplace nor retain existing customers. Second, why only merchant processors? Endorsed and non-endorsed solutions drive transactions, and their software generates maintenance and support fees. Does Sage take some of that off he top?
MD license fees in conjunction with Endorsed Solution margin should suffice. Charge a fee for inclusion in a Marketplace - fine.
Sage has no risk nor makes any investment in these solutions, yet enjoys their benefits. Skimming is a poor method of nurturing the development community.
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Bob Pfahnl
Manager - Silicon Valley
DSD Business Systems
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Original Message:
Sent: 04-13-2023 13:01
From: Doug Higgs
Subject: EBizCharge Partnership with Sage has ended
I agree with most everything except the allegiance to Sage. My first and foremost priority is to my customer and creating lifetime portfolio value. Pick the best solution. For me it means sorting out the reality before making any decisions.
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
Original Message:
Sent: 04-13-2023 12:44
From: Brian Kelly
Subject: EBizCharge Partnership with Sage has ended
@Jerry Norman "we won't change Sage's mind" and "Creating a Bitch Bunch does nobody any good" - TRUTH!
One of the bigger problems for the channel now is the conflicting messages from Sage and Century. What do we do with this information? As channel partners we have a duty to Sage that we don't have to third-party vendors. It puts us in a really awkward position. It seems to me that Sage partners must take Sage at its word and push Sage 100 users to Fortis or Paya.
Thoughts???
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Brian Kelly
Accounting Systems, Inc. (ASI)
Original Message:
Sent: 04-13-2023 10:08
From: Jerry Norman
Subject: EBizCharge Partnership with Sage has ended
I agree, Brian. I hope Sage NA debated this issue for Sage 100 a lot. IMO, it's more than just, "Everybody is doing it, so we should, too." Sage 100 has a unique role in the marketplace and it Sage's 5-10 yr strategy.
Like Sage's decision about Sage 100's future, this one is likely done, and we can do is work with it - we won't change Sage's mind.
At the end of the day, we serve our customers with a responsibility to help them get the most out of their Sage-related investment (AKA "costs"). Creating a Bitch Bunch does nobody any good and ultimately results in the customer leaving Sage 100 and us sooner than otherwise.
Each connected enhancement has 2 sides to the offering:
- one is the value proposition to a customer as to why bother paying for the enhancement the pain of changing to incorporate in the business processes, and
- the other is the financial incentive to the vendor to offer it.
If the cost of the enhancement is not attractive the benefits, the customer won't do it. No harm, no foul.
If you haven't noticed, nearly all of the connected enhancement vendors make their money in financial markets: AP Automation, payment (cc/ACH) services, AR Automation, etc. They are ALL after the cash flowing through their systems, taking a piece and maximizing the financial float. It's just the way it is, because without this "back end," the vendor won't make enough $$ to justify the operation.
Like it or not, we need to school ourselves on the meaning of these changes (now and future ones), be able to explain them in useful ways to customers, and also offer alternative actions they can consider to deal with them.
Also remember, that for nearly all Sage 100 customers, the current cost of running their Sage 100 system is less than any alternative.
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Jerry Norman
Smartbridge Partners
(512) 653-7498
Original Message:
Sent: 04-13-2023 09:34
From: Brian Kelly
Subject: EBizCharge Partnership with Sage has ended
@Wayne Schulz I completely agree with you that this is exactly what Sage is thinking. And, for Sage Intacct, where Sage is hosting the solution and has the responsibility for the performance of environment, this makes perfect sense. You want to transact with our environment, you pay X.
Sage 100 is different. Sage is being paid a license fee (subscription, perpetual license, maintenance fee, etc.) for the use of its product, and it is up to the customer to host it somewhere. Again, if it is hosted in the Sage Partner Cloud, then maybe this applies. However, Sage is being paid extra for the SPC.
So, I see this as purely an extortion attempt regardless of how Sage wants to spin it. Not only that, Sage now appears to be spreading lies publicly and using scare tactics to harm Century Business Systems. I'm no lawyer, but this looks bad.
What's next? Vehicle manufacturers demand gas stations pay them a percentage of the amount of fuel I put into my vehicle every time I fill up the tank? I know they are already starting to monetize features like heated seats through subscriptions which I think is ludicrous.
But, guess what? Very few people care what I think. Such is life. To your point, we get to decide with how we deal with these changes. Good luck to all of us!
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Brian Kelly
Accounting Systems, Inc. (ASI)
Original Message:
Sent: 04-13-2023 09:13
From: Wayne Schulz
Subject: EBizCharge Partnership with Sage has ended
I can see where Sage is coming from (I think).
I am purely guessing about what MIGHT be going on.
Sage sees third-party integrations into Sage 100, where the integration facilitates a per-transaction type fee.
This is something relatively new and, in my view, similar to how Apple requires almost all in-app purchases to run through Apple, for which Apple takes a healthy commission/fee.
Some of these integrations - such as Avalara and Beanworks - took the "Endorsed Solutions" route. As Endorsed Solutions, Sage did receive a "piece of the pie."
Others - until recently, all payment processors - either developed their integration or used a subcontractor to create an integration. Aside from any developer fee, Sage's piece of this pie was zero.
As things progress, we continue to see:
- Credit card processors offer payment integration and have recently introduced AP and AR integrations. Most of these integrations are collecting some per transaction fee.
- From the publisher (Sage) side of the fence, they might see themselves building and maintaining Sage 100; third parties move in for little more than an annual developer fee and charge recurring transaction fees. And I presume many of these fees are material amounts.
- Sage might see charging per transaction as a more equitable fee than raising the developer license to the various companies based on the volume of transactions their enhancements process (which Sage likely has no easy way to monitor in Sage 100)
For example,
Maybe Sage goes to the Payment Processor and says - we are redoing the developer agreement and developers who create enhancements which charge transaction fees directly or indirectly.
You can either:
a. Pay x% of those transactions
b. Or, your developer fee is now $ xxx,xxxx per year based on your declared transaction volume, which we review semi-annually (not a practical approach for developers who may be subcontracted to create enhancements)
Is this a significant change in how these fees have been assessed in the past? Yes
Is Sage due some money for these integrations? Debatable, but in my opinion, if there's a transaction fee, my answer is yes. You already have seen it with Avalara and AP Automation, who I think could have likely "gone it alone."
The Payment Processors can collect this fee solely because of their ability to integrate into an existing software program.
FULL STOP
No Sage 100 = No ability to make ANY money
That being said, there are probably many ways that Payment Processors might work around this - such as using BOI (if possible) or doing a clunky export/import instead of an enhancement.
Ultimately I bet most hold their noses and pay, and in turn, they pass the fee to the customer.
And here we stand as consultants facilitating these transactions (attending demos, assisting with installation, and being the unpaid complaint desk) for a relatively minor (and shrinking annually) sum ( This is the real issue ).
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Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT
Original Message:
Sent: 04-12-2023 13:49
From: Carmen Cruz
Subject: EBizCharge Partnership with Sage has ended
Here is the paragraph that gets me. Shows how greedy Sage is. Shameful
In late 2022 and early 2023, Sage was attempting to enter into a new agreement with EBizCharge for Sage 100. EBizCharge declined this offer because instead of offering an annual license fee model, Sage was demanding a model tied to each merchant's payment processing volume. This is not a pricing structure EBizCharge could agree to because it would require a substantial increase in charges to our merchants which is not something we are comfortable participating in and is not the way we do business.
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Carmen Cruz
Sage Consultant
CompuData