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SCOP -- Scopus Tech
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who wrote (
5/11/1998 3:06:00 PM
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It's hard to answer this with anything except conjecture without having access to more information. But I think it's important to keep in mind that we're talking about sales to the existing customer base. These customers are essentially locked into sebl at this point so I believe that if they want additional modules and sebl charges for them that they will pay. They might kick and scream sometimes but if that's the way sebl chooses to price their software then that's something they will ultimately have to deal with. It goes back to that old saying about pricing software at whatever price the market will bear. If the customers refuse to pay then sebl may have to make some adjustments. But I would venture a guess that these customers knew there were charges for the additional modules when they did their initial license. Wouldn't be surprised to see some types of discounts in these contracts either. It has never ceased to amaze me what customers will pay for if they feel there is value to be had.
It really isn't so much an issue how vntv of sap prices their software. How vntv prices is going to be more important in new sales and maybe if vntv is smart they would think about changing their pricing policies. I don't mean that to be critical of vntv either. Just saying there's more money for everyone if the pricing policies within the sector are somewhat consistent. If sebl can get more then vntv would be foolish to continue charging what they are for everything. It just doesn't make business sense unless they are trying to compete on price.
Can't comment on what the scop customer will or won't pay for. But I think it's important to keep in mind that the sebl(SFA) products will be sold to a completely different part of the organization vs. where the scop products were sold. So I'm not sure that generalizing about the scop customer base is necessarily valid in this situation.
I misunderstood your comment about service revenue. Sorry.
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