jason cole wrote:
Not quite, Andy. You're asked to change the standing order
The change in company name was down to political and financial matters that I don't get involved in. I am aware it makes us look like a dodgy builders merchant. The only major impact on customers has been to change a standing order. That's it.
More to the point, Andy, does the original post give you a better feel for why the software companies charge an ongoing fee, and do you feel better equipped to answer the people you work with/for?
Yes Jason, I take your point. Personally, I do understand why the initial capital costs of buying the equipment and software do not cover all your costs in producing it.
I presume, it is down to market size.
I bought Sage Line 50 for around a £1,000.
They said "Do you want support? Its another £450 a year."
I said, "Will it go wrong then?"
They said "Of course not"
So I said "Then I do not need your support, thank you".
And so it has transipred, that I have not needed their support. It just works.
So, what are my presumptions? I presume, that Sage sell in such volume that the initial cost price covers their development costs (to date).
Do I want upgraded versions of sage? Not really, if the one I have now works, then why do I need an upgrade? I am not fashion concious.
I would happily still be working with DOS. Faster PCs dont do anything for me. I still have never met any PC that works slower than I can type. I'm just not in a hurry. Do I need all the fancy stuff? Nope, probably not, but if it's there I might buy it when I eventually do need a new computer or software. It's called impulse buying.
Now, with impulse buying I can spend a grand or two and if it's not what I wanted, too bad. However, when it comes to spending say £25,000, and then having ongoing support costs that come to far more than that figure, I am now into a heavy "Risk" factor. I can no longer impulse buy, as I cannot afford to get it wrong.
Worse still, If I am spending someone else's money (and that someone else happens to be my best mates, and my best mates are not, and have never, been into computers), as my process of convincing them is all the more difficult.
So, what can I do? Well, the obvious answer is to get into it incrementally. But, there seems to be no actual benefit in that. A single user station would have to go on the control desk, which means I cannot actually benefit from it myself to do the invoicing, wages, etc etc..., so I need at least a two station system, one on the control desk, and one in my office as I do all the other admin. Well, as soon as you get to two users, you might as well put a server in and add another desk for the second telephonist as the system seems pointless without it. And, oh yes, the boss would like one on his desk too so that he can monitor things, and while we are at it....... etc etc etc....
Soon, we are up to spending a lot of money. Now, I can so far, justify the capital costs............. But then, when I add ongoing costs of support, the arithmetic veers away from my control.
We buy a PMR radio for £250. When the warranty runs out, if we need it fixed we pay a guy to do it. No ongoing support cost like there is with a datahead. If he says it will cost us £50 to repair the radio and we've had it a while, we simply bin it, and buy another one.
Now look at your support costs on a datahead. If we said a datahead had a 5 year lifespan, it would be cheaper to buy new ones than to pay the support costs. Thus, we must presume, that dataheads dont last very long. Another cost to factor in? Well, no actually, as we never think like that in real life. We never, for example, factor in the costs of buying new PMR radios, yet, this year to date, my Sage tells me we have spent £2,600 on PMR sets. The point is, if we need one, we simply phone up and order one. Now, if every PMR set we ordered had an ongoing support cost attached to it, the factors of consideration are very different.
I can spend money that we have in the bank, what I cannot do without serious consideration, is spend money that we dont yet have, by commiting us to ongoing monthly costs way into the future. Can you not see, that thats an altogether different baby.
If the sale price of your software does not cover the real cost, then put the price up so it does. Then we all know where we stand.
Jason, please do not think I am having a go at you. I'm not. You are preaching to the already converted here. I already know that Diplomat support is head and shoulders above the rest when it comes to talking to someone who actually knows what they are talking about. The Auriga girls, and some other support services simply seem to be "message takers" who know the time, but little else.
What I am trying to put over here, is the view-point from a small business that is very much on the border line so far as needing or wanting to go computerised. We are set in our own little world, where the pen and a bit of paper takes a lot of beating, but are at that time, when there are too many bits of paper, and we cannot store it all in our heads anymore. But, can I convince everyone else of that fact?
Therein lies the problem.
I know that if we computerise, we will have no end of problems initially. So I also know we need support.
So, give me a clue, for a four desk system with one set in continuous use 24/7 and the other three only intermittantly, how many times a week do you reckon we will ring you in the first six months?