The caution exercised by our current customers is different from those considering investing in a new system. Sage sees the latter; we, on this thread, largely see the former.
Small business execs are judging their challenges over the next 1 to 2 years in this economic thing. They read business reports, talk with their peers, hear the daily news, etc. Interest rates going up affect all financing, and some companies are pretty heavily leveraged since debt has been very, very cheap for a long time. (I don't think comparing mortgage rates over 30 years is relevant, since nearly all people making decisions have mortgages from the past 20 years, when interest was very low. Averaging over 50 years to judge current decision-making is misleading because there was at least 10 years of very high rates in the middle.)
The overwhelming message in all those sources is a
general sense that the economy is getting worse. They plan accordingly, with the
risks of choosing the wrong direction forefront.
In good times, companies buy "vitamins," like a new system. In tight times, they buy "pain killers," things that reduce costs. Sage sells to companies looking for vitamins, and they hear feedback relevant to that.
@Wayne Schulz's observation about pandemic front-loading some work is quite true. I think current customers are continuing to consider smaller projects to continue to reduce the need for headcount or to give them better visibility and control over costs. Hence, most of us haven't seen obvious pull backs from current customers.
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Jerry Norman
Smartbridge Partners
(512) 653-7498
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Original Message:
Sent: 01-27-2023 09:32
From: Doug Higgs
Subject: #GameOn for Q2 Partner Town Hall
Maybe I'm naive. I'm not seeing issues with the economy. Maybe job shifting. Tech is laying off but manufacturing is hiring. Here's some stats I gathered:
dow - although down 28% over 1 year
3 yrs ago 28256
yesterday 33949
so up 20% over 3 years
unemployment is 3.5%
30 yr ave mortgage rate since 1971 is 7.76
30 yr ave mortgage rate 6.36
Current annual inflation rate is 6.5% - this is tough to measure because each individuals inflation rate varies
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
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Original Message:
Sent: 01-27-2023 09:12
From: Wayne Schulz
Subject: #GameOn for Q2 Partner Town Hall
>With Nancy leaving, nothing changes, not even the people...
This is how Sage reorganizes. They did the same thing with Kelly. He left, but his basic blueprint is mainly in place. Admittedly many of his top execs followed him out the door, but it's also hard to know how much was normal churn.
>Peyton indicated that 25% have 7-figure annuities. That is a viable VAR business, but that also means 75% do not. How many people does $1mil support, and what is the investment to achieve that level?
Relying on vendor commissions as a material portion of your revenue is a losing playbook. Many of the smaller VARS in this space seem to be trying to develop their IP to control more of their revenue stream.
>I was surprised to hear as much talk about how tough the economy is. In my talks with partners, business is not that bad. If Sage is growing, think about how other products are doing.
Me too. However, what's happening in the stock market and with tech layoffs, generally, can't be ignored. I feel the pandemic pulled a bunch of work/sales forward into the pandemic period. Now, as we deal with a post-pandemic economy, much of the accelerated spending is taking a breather or reducing.
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Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT
Original Message:
Sent: 01-26-2023 16:16
From: Gary Feldman
Subject: #GameOn for Q2 Partner Town Hall
Thanks for sharing this... What did we learn
- OKRs - Objectives and Key Results - a new acronym.
- With Nancy leaving nothing changes, not even the people...
- Peyton indicated that 25% have 7 figure annuities. That is a viable VAR business but that also means 75% do not. How many people does $1mil support and what is the investment to achieve that level?
- I always like Dianna Lane, however, this presentation was great for new partners and not a mature channel. BMS growth is nice, but I wonder how much of it is pandemic recovery related.
- I was surprised to hear as much talk about how tough the economy is. In my talks with partners, business is not that bad. If Sage is growing, think about how other products are doing.
The one thing that seemed missing from many of the words was the customer. Adding more ISVs to sell more is backwards from identifying customer needs and product gaps and filling those to delight the customer. Not the best use of my time, but always important to keep aligned with your publisher!
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Gary Feldman
I-Business Network, LLC
Original Message:
Sent: 01-24-2023 11:39
From: Wayne Schulz
Subject: #GameOn for Q2 Partner Town Hall
Here's the recording - unfortunately, the recording jumps right in, and the speaker doesn't identify himself. My guess is maybe that it's Marc Monday.
https://www.youtube.com/watch?v=NY3toiSbHT8
1. Weathering the storm/lighthouse story
2. Sage as the "rescue boat" to help and rescue SMB customers across the US who need/want our help
3. Thank you to Nancy Teixeira
4. OKR = Objective and Key Responsibilities
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Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT