[AccessD] Client Payment Methods

Gregg / Dan - Can you tell me how this works? I also only do fully customised systems - my normal process is to provide a written quote on a job and ask for  half as deposit and the other half on completion. Additional work quoted separately.

So if I was to quote a job which worked out to $10,000 - how would I convert that to an ongoing monthly payment? My accountant has also suggested that I get some monthly payments happening - but I have no idea really how to do that....How much should they pay? What do I promise in return? How long does the arrangement run for??? 

Kath
  ----- Original Message ----- 
  From: Gregg 
  To: Access Developers discussion and problem solving 
  Sent: Sunday, April 24, 2005 2:31 AM
  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

     

    -- 
    AccessD mailing list
    AccessD at databaseadvisors.com<mailto:AccessD at databaseadvisors.com>
    http://databaseadvisors.com/mailman/listinfo/accessd<http://databaseadvisors.com/mailman/listinfo/accessd>
    Website: http://www.databaseadvisors.com<http://www.databaseadvisors.com/>
  -- 
  AccessD mailing list
  AccessD at databaseadvisors.com
  http://databaseadvisors.com/mailman/listinfo/accessd
  Website: http://www.databaseadvisors.com