General Consultant Discussion

This is why I'm a big believer that you need: 1. A menu of pricing 2. Which ""Starts at"" Or if you do not have that and you are trying to fixed fee projects (especially small ones) these type of inquiries will bankrupt you as you hustle to do discovery, scope, typed proposal and then wait.... Hi Wayne, I know I had emailed you a few months ago about the benefits of upgrading our MAS90 system to the current versions and you gave me a link to your calendar to schedule a time to discuss, which I did not do yet (please resend me the link), but based on what you know about our current system (MAS90 & FAS) can you provide me an estimated cost to upgrade? I just want to make sure I have it budgeted in case it is worth doing after you, and I discuss over the next couple of months. This is fairly typical - customer repeatedly ""wants a proposal"". I could literally spend all day keeping busy. Thinking I'm thriving. Holding free ""meetings"" to discuss the next big upgrade... I've found in order to be effective at fixed pricing that I do need a way to say"" Dear xx, We find most upgrades start sta $ xxx Should we schedule a time to talk further about the details of your upgrade

I take it one step further back. We start with a required, paid System Review with a minimum price of $1,500. That includes the system review and a scope document detailing what projects could be completed. We then give them a price(s) for completing those projects. And at a minimum it would include a KTA.

I don't do that for an existing customer on maintenance. On a projected $3,500 upgrade from MAS90 4.3 to 4.5 I think they'd laugh,

You're talking about one of your customers on your maintenance? I'm talking about a new customer to us. Since 100% of our customers are on KTAs, there wouldn't be any need for a system review for one of them. For the vast majority of those folks, the upgrade is already built into the KTA. For those who do not, it's very easy to give them a price for an upgrade.

It's one of our existing customers - I'm gradually working toward an ""include it all"" annual agreement which in my opinion is the only way that VARS will survive in the SaaS era. (By survive I mean to make any real money).

The clients that I have on the all inclusive are much easier to manage. Also, they know what to budget right out of the gate.

I believe MAS90 will never be a SaaS like multi-tennant ""never worry about the upgrade"". However we can provide that portion of the experience and in reality it can be a better customer experience than one where they are locked into an online solution that tells them when they're going to upgrade (like it or not). And SaaS charges dearly for this service -- typical Netsuite annual fees start at $25k --- so this idea of all in one upgrade/support is not far fetched at all and can be quite lucrative provided VARS go into it with the right planning and attitude. So far what I've seen from many VARS is a strong aversion to anything but hourly billing if there's the slightest bit of risk that the job might run over.

Yea, was just looking for a web site programmer who's well known and he has a paypal link for a $250 consultation fee before he'll talk to you. Must keep the tire kickers out.

We require all upgrades, whether existing client or prospect, to agree to a billable pre-upgrade analysis. This analysis typically, depending on number of mudules, users, customizations, etc. takes anywhere from 4 - 6+ hours. When complete I submit a detailed upgrade scope with the cost. If they choose not to upgrade, the analysis is still billable. We have been using this method since 4.0 and it works really well for us. The analysis is not fixed, but the upgrade will be. When a request comes in, I send a request form outlining the terms as well as the current SPM, they sign the request acknowledging that the analysis is billable, and at that point I schedule the analysis. If it is a new support prospect the analysis is pre-pay.