[AccessD] Client Payment Methods

MartyConnelly martyconnelly at shaw.ca
Sun Apr 24 00:00:50 CDT 2005


Just as a matter of interest I was looking at one of the major software 
packages for practice mamagement
in legal firms, Time Matters  the intial cost for a solo practice is 
$1000, but what is amazing is most lawyers also cough up
the $950 a year for quick tech support without blinking.

Dan Waters wrote:

>Gregg,
>
>I remember in a past job that if we modified an item that was purchased as a
>capital item, any modifications to it had to be reviewed to change the value
>of that capital item for accounting reasons.  But, there was no such review
>needed with an expensed item because it didn't have capital value.
>
>Perhaps that's what's happening with your customers when they are now asking
>for additions and enhancements???
>
>Dan Waters
>
>
>-----Original Message-----
>From: accessd-bounces at databaseadvisors.com
>[mailto:accessd-bounces at databaseadvisors.com] On Behalf Of Gregg
>Sent: Saturday, April 23, 2005 11:32 AM
>To: Access Developers discussion and problem solving
>Subject: Re: [AccessD] Client Payment Methods
>
>It's a very good idea.  Removes most of the sales objections. Allows the
>customer to kind of try before they spend a lot. Makes the purchasing
>decision nearly a no-brainer.
>
>The only downside I can see is if their expectations are far different that
>what your software delivers, you will either have to make modifications
>quickly and essentially for free or they will be tempted to shop around for
>another solution.
>
>I have done something similar.  Our software is totally custom for each
>customer so our end product is almost all programming by the hour.  This
>year I was able to convert 4 long-term customers to a regular monthly
>billing. We still track hours and make adjustments when necessary but now I
>can count on a regular monthly check.  It's been good. 
>
>Also, I have noticed a change in their mindset about asking for additions
>and enhancements.  In the past there were mini approval processes where they
>would get an estimate of our labor before proceeding.  Now, I guess because
>of the monthly payments, they tend to think of it as a maintenance contract
>(where requests are seemingly free) even though I have been very clear that
>it is not.  Now, from their perspective its a budgeted, yearly commitment
>(once-a-year decision) even though they are free to get out at any time.  
>  ----- Original Message ----- 
>  From: Dan Waters<mailto:dwaters at usinternet.com> 
>  To: Database Advisors<mailto:accessd at databaseadvisors.com> 
>  Sent: Saturday, April 23, 2005 10:18 AM
>  Subject: [AccessD] Client Payment Methods
>
>
>  To All,
>
>   
>
>  Yesterday I had a business planning meeting with an advisor.  He brought
>up
>  the idea of asking my clients to pay me on a monthly basis - the concept
>is
>  that they would pay me a portion of the ongoing value they get from my
>  services.  (By the way, this is not a maintenance fee.)
>
>   
>
>  This sounds quite attractive.  My customers might skip a major budget
>  discussion (often lasting several months) and quickly get started.  They
>  have a low risk because they could discontinue whenever they want, which
>is
>  actually a good business position.  On my side I would be a little shocked
>  if they did discontinue because no one would really want to go back to the
>  old way of doing business.  
>
>   
>
>  I'm thinking that I would ask for a monthly amount of 1/36 of what I would
>  have asked for to 'sell' a module.  The monthly payment would of course
>  continue after the 3-year period.  This gives me a long-term regular
>income
>  stream, and allows my customer to make small monthly payments which might
>be
>  easier to get into.
>
>   
>
>  Does anyone provide software under similar terms?  Or, does anyone use
>  software under similar terms?  What are your thoughts on this payment
>  method?
>
>   
>
>   
>
>  Dan Waters
>
>   
>
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>  
>

-- 
Marty Connelly
Victoria, B.C.
Canada






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