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Sage unveils annual price adjustments

  • 1.  Sage unveils annual price adjustments

    Posted 02-18-2020 14:07
    Sage 100cloud - up 5% for subscriptions, 9% for modules, licenses now sold in tiers rather than pricing everything at the highest tier.

    Sage 300cloud - up 9%

    Perpetual up 15% 

    Full release: 

    Upcoming price changes for Sage 100 and Sage 300 product lines

    On May 1, 2020, we will be making several pricing changes to our Medium Segment portfolio in the US, Canada, and LAC. All new pricing information will be released in the next few weeks. We are working to notify all customers of the pricing increase by email and post by March 1, 2020.

    Sage 100 (Perpetual) and Sage 300 (Perpetual)
    List Price for Sage 100 and Sage 300 will increase by 15%.

    Pricing model changes for Sage 100cloud, Sage 300cloud, and integrated Sage CRM
    We are moving from a volume-based pricing model to a tier-based model.

    According to our current model, we offer volume-rate discounts based on the number of users on an account.

    On May 1, 2020, our model will become 'tier-based', which means that subscription customers will pay a different rate per user, depending on the user-tier they are in. For example, their first five (5) users will be billed at one rate, their next five (5) users will be billed at a lower rate, and so on.

    Switching to a tiered model will allow us to improve our processes and serve customers better by providing them with increased transparency, more accurate quotes, and more timely notice for renewals.

    The list price for Sage 100cloud users is increasing by 5%
    2019 was a big year for Sage 100cloud: (a) With more than 30 enhancements, 2019.0 was our biggest release in years. (b) We completed our journey to framework with the introduction of Sage Production Management (including a shop floor mobile app) and a new Inventory Requirements Planning module. And (c), we were recognized as a market leader by G2. Each year, we make an active effort to increase our prices as little as possible without also sacrificing our development velocity. A 5% increase to list price will allow us to accelerate our innovation journey in 2020.

    Starting on May 1, 2020, most Sage 100cloud customers paying list price will only see a 5% increase in their core license cost compared to their last renewal. For a few, the combined impact of the increase to list price and change in our pricing model may result in a slightly higher effective rate increase, but we are committed to honoring our commitment to capping any annual effective increase on Sage 100cloud to no more than 10%.

    The list price for Sage 100cloud modules is increasing by 9%
    A 9% increase on our modules will help us to serve customers better while increasing our development velocity. We make an active effort to avoid price increases as much as possible, which is why it has been some time since we increased the price of Sage 100 Payroll.

    Sage CRM for Sage 100cloud will not see a price increase in FY20, aside from any effective increase as a result of the change in pricing model from volume to tier.

    The list price for Sage 300cloud users and modules will increase by 9%
    We're increasing the list price for the 1-5 user tier for Sage 300cloud customers. As a result of this price increase combined with the tier pricing model change, all customers will see a price increase of 9%. We are capping the effective price increase to 9% for all customers, including those who would see a price increase up to 10%, or beyond.

    Sage CRM for Sage 300cloud will not see a list price increase in FY20, aside from any effective increase as a result of the change in pricing model from volume to tier.


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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 2.  RE: Sage unveils annual price adjustments

    Posted 02-18-2020 14:22


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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 3.  RE: Sage unveils annual price adjustments

    Posted 02-18-2020 14:22


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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 4.  RE: Sage unveils annual price adjustments

    Posted 02-19-2020 08:44

    My favorite two sentences from the announcement are these with a little commentary from me: 

    "Switching to a tiered model will allow us to improve our processes and serve customers better by providing them with increased transparency, more accurate quotes, and more timely notice for renewals."

     Increased transparency?  Well, I suppose you can spin it that way.  Improve our processes, more accurate quotes and more timely notice for renewals?  Seriously???  If I am a customer with multiple tier levels for users, which calculation is easier and quicker to provide with very little room for error?

    "For a few, the combined impact of the increase to list price and change in our pricing model may result in a slightly higher effective rate increase, but we are committed to honoring our commitment to capping any annual effective increase on Sage 100cloud to no more than 10%."

     Translation: Our legal counsel advised us not to violate the legal terms of the EULA.  So, in the names of Commitment and Honor, we will comply.  But don't you worry, we have instructed counsel to rewrite the EULA to remove that horribly restrictive language and will replace the existing one in the very near future.

     Do y'all hear that?  The faint cries of the cash cow as it continues to suffer the agonizing torture of a master determined to squeeze every last dollar out of its seemingly everlasting journey into the abyss.



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    Brian Kelly
    President and Head Cheerleader
    Accounting Systems, Inc. (ASI)
    Columbia SC
    803-252-6154 x210
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  • 5.  RE: Sage unveils annual price adjustments

    Posted 02-20-2020 02:29
    Edited by Doug Higgs 02-20-2020 02:32
    Most of the investment in new features applies to subscription end users.  Why are perpetual customers getting  a 15% increase?  Trying to pressure a change to subscription or perhaps a change to another software publisher?

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 6.  RE: Sage unveils annual price adjustments

    Posted 02-20-2020 07:32
    Sage has been pressuring a change to subscription for the past few years. Nothing new here.

    I actually like the non-feature benefits of subscription which make it easier and cheaper to subscribe, cancel and swap platforms.

    Too bad Sage couldn’t have started out with an honest conversation about changing license terms from perpetual to subscription.

    Trying to add pizazz to their legacy product lines by bolting “cloud” into the names was a big mistake that fooled nobody except the investment community.

    Maybe that’s who Sage was really looking to reach with the name change?

    Unfortunately, I have an uneasy feeling that once a critical number of users are on subscription we will see continue price hikes in the form of either outright increases, change in price policy ( user tiers ) and perhaps eventually a changed from concurrent to named users.

    IMO, the Sage 100, 300, 500 platforms are used as the cash engine to attempt to grow Sage’s strategic Sage Business Cloud offerings ( Intacct, X3, One ). The biggest unknown is whether these three amigos will grow fast enough to satisfy the investment community.

    I struggle to see Sage becoming successful when they continue to hire ( and cycle through ) executives and managers with little ( or no ) experience working in the field.

    One reason Taylor Macdonald has been so successful is that he actually worked in the positions which he is now managing.





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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 7.  RE: Sage unveils annual price adjustments

    Posted 02-20-2020 07:38
    @Wayne Schulz  I hope one of the price hikes you mention isn't charging more for advanced or premium.  There is going to be a rush for the door if that happens.​

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 8.  RE: Sage unveils annual price adjustments

    Posted 02-20-2020 08:14
    @Doug Higgs we will have to wait and see.
    If we think there isn't another regime  ( waiting in the wings behind this current one​​ ) who won't consider that then I think we are all naive.

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 9.  RE: Sage unveils annual price adjustments

    Posted 02-20-2020 08:32
    Edited by Doug Higgs 02-20-2020 08:34
    I believe there is value in the advanced or premium and maybe there should be different pricing for new customers.  Current customers should be grandfathered in, particularly those that moved to premium because it was "free".  It would be unfair to tell them now that there is a big price hike if you want to stay on premium, and there is no reasonable (cheap) conversion alternative to downgrade to advanced or standard.

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 10.  RE: Sage unveils annual price adjustments

    Posted 02-19-2020 10:49
    First, I'll say that I think Sage IS investing in Sage 100 and not leaving it to wither.  That said...
    I've read it a few times and I'm unclear about how this would apply to existing customers, whether they'd start paying more for users 1-10 or 1-25 after May 1.  If their price got set two price hikes ago, will the old tiered prices be applied, or new ones.  And at that point, do they have to grandfather it up to the full amount because of the 10% per annum cap?  This is one of those things that makes it really hard to calculate what's going to happen in advance.

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    Rhonda McNamara
    Customer Success Manager
    Stewart Technologies, Inc.
    rsm@stewarttechnologies.com
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  • 11.  RE: Sage unveils annual price adjustments

    Posted 02-19-2020 11:03
    Those Excel spreadsheets Sage uses to calculate quotes / pricing are going to get even more complicated!

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 12.  RE: Sage unveils annual price adjustments

    Posted 02-19-2020 14:01
    My favorite line of the announcement....Switching to a tiered model will allow us to improve our processes and serve customers better by providing them with increased transparency, more accurate quotes, and more timely notice for renewals....LOL we can expect better service and more accurate quotes by increasing the complexity of how we price.

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    Steve Engmann, MBA, CMA
    Competitive Strategies, Inc.
    Appleton, WI
    920-993-1077
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  • 13.  RE: Sage unveils annual price adjustments

    Posted 02-19-2020 14:49

    My fave - moments ago via the Sage Partner Hub

    Is Sage trying to ride two horses? 



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    Wayne Schulz - Schulz Consulting - 860-516-8990
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