Sage is proceeding carefully to make sure they have appropriate feedback before this unveiling to the channel. The new tiered pricing was reviewed with the BPAC the last week of January. Since then, Susan Galberaith, Principal Product Marketing Manager out of Atlanta, has been speaking individually with BPAC members and others for this feedback.
Generally Sage has listened to concerns, specifically with regard to existing Payroll customer pricing. Sage is also assessing whether the value they believe they have built in is acceptable. I consider it to be as optimal as it can be for existing customers with the revised pricing, and I believe I can sell our customers on this. About 5%-10% of our customers use the Payroll module, and truthfully I wouldn't mind if they all converted to something else. Payroll has always been a support drain with too many emergency issues cropping up.
As for new customers, they will need to do a proper cost comparison before making a decision. I predict there will be less new sales of the Payroll module for prospects than in the past due to this pricing.
At President's Circle I had a couple conversations with Robert Digby, who was CEO of PayChoice and now that it is Sage Payroll Services is SVP, General Manager of that group. This system apparently integrates with the Sage 100 GL, but I told him it needs to also integrate with any costing systems that are used, specifically JobOps for me. It is also priced to compete with ADP and other similar services, and I understand there will be tier credit at some point. I asked him why Sage didn't just replace all existing payroll modules with this and be done with it - one common function across all products. He implied this may be a possibility in 3-5 years, but, of course, didn't want to commit.