771 lines
51 KiB
Markdown
771 lines
51 KiB
Markdown
# Pricing licensing activation models
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This is based on basic 6 dollar droplet if users need more then they pay for more, it costs us 4% for anything we charge for so we need to add that to any costs digitalocean charges us, plus a 2.95 transaction fee.
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### SUBSCRIPTION
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cost:
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Droplet
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$6 month 1gb / 1cpu/ 1tb xfer/ 25gb total (5GB is taken by installed apps on new setup, so 20gb is free here and available to users)
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$12/month 2gb/ 1cpu/ 2tb xfer/ 50gb total storage
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100gb for attachments / backups (NOT DB) $10.00 month
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250gb '' $25.00 / month
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Fees and taxes:
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shareIt: MyCommerce ShareIt Model A: 4% + USD 2.95
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(SHAREIT charges 2.95 per transaction so monthly payments costs us $35.40 a year whereas yearly payments costs us 2.95 so $32.45 a year difference or in monthly terms it costs us 2.70 more per month to process)
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User though who pays monthly has to pay a transaction fee possibly to their bank or credit card so they have an incentive to buy yearly as well built in
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DigitalOcean: 7% PST not refundable (gst is refundable)
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So a server costs us 6+7%=$6.42/month or $77.04 per year currently
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Each payment made costs us 4% + 2.95
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So yearly fixed costs for any scenario or
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server rental 77.04
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Shareit flat fee (assuming monthly) 35.40
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so a customer costs us $112.44 per year plus 4% of sales
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V8 SUBSCRIPTION
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(assumes monthly payments always)
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$12 dollar per active logon user
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1 user= $12.00 month 30.84/yr net profit / charges 144/yr **NOTE** for a one user they should go on to a shared droplet to save money, we can easily double up people as needed to save on this cost or have a mega server for singles and put them all on it
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5 User = 578.76/year net profit per year | charges 720 yr
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10 user = $1269.96 / net profit for year | charges 1440 /yr
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15 user = $1961.16 / net profit for a year | charges 2160 yr
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20 user = $2652.36 / net per year | charges 2880 / yr
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50 user = charges 7200 / yr
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Customer contact users
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Active customer contacts who can login consume licenses.
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250 are included at no charge.
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Blocks of 250 more can be added for the same price as a regular user login so 12 bucks a month / 144 yearly
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### PERPETUAL
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NEW PERPETUAL V8 PRICING AND SYSTEM
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Subscription only, no different up front cost, you pay per year for a years worth of support and updates and can stop before the next year renewal and be fixed at that release version.
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$2/user per month or 24 per user per year, minimum 3 users
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$24/year per **active login user** minimum 3 users for perpetual unlike subscription which has no minimum
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(Note that the minimum 3 is because a single at 24 bucks wouldn't be worth our time to deal with support and updates and administration and perpet are deliberately priced far cheaper per user so it's not a big jump for single people)
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1-3 **users** = $72.00 charge to customer / $66.17 net profit
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5 users = $120 charge / $112.25 net profit
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10 users = $240 charge / $227.45 net profit
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15 users = $360 charge / $342.65 net profit
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20 users = $480 charge / $457.85 net profit
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50 users = $1200.00 charge / $1122.50 net profit
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# NOTHING BELOW HERE IS CURRENT
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---
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###################### TODO: revisit subscription pricing, too high, set to much lower but minimum 100/month effectively by x minimum licenses to purchase
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## NOT Actual OLD SHIT
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Sample email outlining pricing until get on web page:
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Good morning Rich, I have just been given the new pricing.
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There is no web page to send you to yet, but I can just relay it below. Note that I'm typing this out from notes, it's not in official form but it will give you the pricing.
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There are two options coming - "Perpetual" license where customer self installs on their own hardware and "Subscription" license where we host AyaNova for you as a subscription service.
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All prices in US dollars.
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# AYANOVA PERPETUAL LICENSE
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AyaNova self-installed on own hardware / network
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$135.00 per scheduled technician User
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$0.00 for any other Users that are not scheduled or booked on work orders or have their labor tracked etc (i.e. office staff, Inventory people, Sales, Accounting, Customer User logins etc)
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Includes 30 days Maintenance plan (technical support and any updates released in that time period).
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Yearly Maintenance plans for technical support and updates to the latest AyaNova release can be purchased for discounted price of $100 yearly per scheduled technician with an active unexpired maintenance plan or for $135 yearly per service technician without an active maintenance plan in place.
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Includes at no extra cost our QBI QuickBooks (Desktop edition) integration (Online edition and other accounting platform integrations coming soon).
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Backup data is compatible with Subscription version (below) if you want to switch and save the costs of supporting your own hardware, ISP and I.T. etc.
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# AYANOVA SUBSCRIPTION LICENSE
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AyaNova hosted by us on our servers in your choice of data center
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(US West, US East, Toronto Canada, Amsterdam Netherlands, Frankfurt Germany, Singapore, Bangalore India)
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We maintain AyaNova for you, always the latest release version.
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(These prices are based on 12 month purchased at a time, if month to month 12% higher to account for extra payment processing costs)
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$50.00 per month per active User
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Any User account who is set to Active in AyaNova, not by scheduled technician as in the Perpetual license.
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Customers can also be set to optionally login to AyaNova for the Customer self service features; 250 Customer Contact Users (set to active) are included and blocks of 250 can be added on for $12/mo
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Can use the provided subdomain name or bring your own domain for no extra charge.
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(e.g. instead of using atlas.myayanova.com can be anything.atlasegllc.com)
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Includes 25gb of storage for database and attachments which is a lot based on average AyaNova deployments for v7 more storage available as optional add-on.
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Includes QuickBooks (Desktop edition) integration (Online edition and other accounting platform integrations coming soon) at no extra cost.
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You have access to your own data to download backups any time that are compatible with Perpetual version if you want to switch (with purchase of a subscription license).
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More details on optional add-on's for Subscriptions to come as it's getting finalized but that's the main price.
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- John
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www.ayanova.com
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## ACTIVATION
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The method by which a user starts using your product is called the activation model. i.e. evaluation, trialing etc
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### Free trial
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[helpful info](https://baremetrics.com/blog/saas-pricing-models#free-trial)
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This is the method we use and will continue to use but needs tweaking.
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### Lead quality
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We must require something to improve lead quality, if it's too easy people will just fuck around for the fun of it and waste our time. Some require a credit card but that's a _very_ high barrier I think for just kicking the tires and right now how would we even use that with our payment processor since it's a zero dollar thing up front?
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At the very least we should continue to require a valid email address to get started. Not sure of any better commitment that is simple and works for us so no change there I guess but they cannot download and try without an email address unlike v7 which just works from download automatically.
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### trial period
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Right now we have 45 day trial, that's way too long, it ties up resources and prevents any sense of urgency on the part of the customer.
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It needs to be as short as possible but still allow them to try it all out. In fact, there are two different types of trial periods now, the perpetual and the saas subscription.
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For perpetual it takes much more time to install and set up to even get running and that's part of the testing process, however they can repeatedly request a trial license no problem but have to erase the data each time so I guess at the end of the day it's not necessary to have different length trial periods.
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I think a 5 day trial period is sufficient. It creates hella urgency, it is really enough time to kick the tires and try everything out for real, if they are super serious but uncommitted yet they can move to renting for a month and really get into it.
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"5 Day trial, if you need more time we suggest sign up for a month"
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### Existing v7 users going SAAS
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We offer the import of data ourselves so that they don't need to fuck around with that as part of the SAAS service?
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Hmm... a lot of it requires specific to them choices, maybe not.
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## PRICING
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(Joyce made two docs one for pricing as well as historical and projected license sales and a doc about payment processing providers both saved in raven project folder devdocs)
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Note that we really need to consider SAAS right out of the gate because it's totally where things are going it seems and there are many arguments for it even if we are not hosting it yet we can offer it as a subscription they run on premise.
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See the [links below](#new-idea-perpetual-vs-subscription) and read through them take the time.
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We're likely leaving a lot of money on the table by not having a subsription saas pricing model and we could potentially do both.
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Two models:
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Perpetual on premise (most expensive up front no recurring revenue, charge for updates and support as required)
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Subscription hosted (We host they pay a flat fee per month / year to get access to latest version)
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Eventually I'm going to want to cash out and sell the business and recurring revenue model is far easier to sell than a perpetual model.
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### SINGLE LICENSE WILL CHANGE THINGS
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The tiers are artificial for us because they stratified the sales, when we go to the new system of you pay for every tech / user that you need it will become unstratified and we'll get exactly the size each customer needs.
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some higher level ones may want to decrease because there's no 7 user for example, some may increase because they've been holding off not wanting to level jump.
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Although in the end I bet it affects new sales more than existing because it's fucking cheap for value right now.
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### Positioning
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Our price position is in the middle: the best value for dollar, not the lowest cost and not the most expensive fanciest one but best value.
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### Value to Price ratio factors
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Value to price ration of 10:1 is ideal, means customers feel like they are getting 10 times more than what they pay
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I've never heard anyone say AyaNova is too expensive
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### License types and programs we will offer
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TWO types makes the most sense after considering options:
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#### Perpetual
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- Most similar to current v7 but not exactly the same, subscription is broken out separately
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- One time fee, user can use indefinitely
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- self installed, hosted and maintained by customer
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- least profitable for us long term if they don't buy a maint. subscription
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- Without maintenance subscription, eligable for Minor updates only to fix bugs no new features so in other words they buy 8.0.9 they can upgrade to any 8.0.X version release, but not 8.1 as it will be new features added that don't break backward compatibility
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- one-time payment, along with the option of a yearly maintenance fee.
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- This is basically our current model but we allow upgrades for subscribers
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- **HAS CODE IMPLICATIONS** upgrades need to check if allowed based on version number if no maintenance subscription _not_ on date of build.
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- TBD - MAJOR RELEASES: not sure yet; if they have an active maintenance subscription can they can upgrade to any newer major releases??
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- If they lapse the subscription they pay a much higher premium but not quite as high as a completely new purchase to reward past loyalty (i.e. maybe 75% or some other % as appropriate of a new purchase or something?)
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#### Subscription license
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- SAAS, pay month to month to keep using it
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- We host, maintain and always upgrade they don't need to do a thing but use it
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- The subscription model involves recurring payments, typically monthly or yearly. The subscription model can be thought of as “renting” the product instead of “owning” it under the perpetual model.
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#### SWITCHING
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We need a formal declaration of how to switch from one to the other models.
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##### Perpetual to subscription
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they start with perpetual but go fuck it we don't want the hassle anymore so....?
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I'm guessing it's just switching to month to month plans and pricing, nothing special except maybe we offer to move their data for them
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##### Subscription to perpetual
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They must purchase a perpetual license as the SAAS license wont' work with perpetual but they can restore their database from the subscription.
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### Pricing for v8
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#### PERPETUAL
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### IN PROGRESS price
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**US$135.00 / tech up front perpetual license**
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No volume discounts - same price for any size company
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Gets you 30 days support and updates and that's it
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**US$100/tech/year maintenance**
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Only $8.33 per month (must mention in marketing)
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Price is valid within 15 days of a prior license purchase or a yearly maintenance expiry otherwise it's 135 to start again
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No volume discounts - same price any size company
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Gets you one year of support and updates to any release
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**UPDATE INFLATION IN TRUE TERMS CLOSE TO 25% so using that**
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IDEA: figure out average license cost over all sizes of existing license sales, factor _that_ with the 25% true inflation and make that the average license price??
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**update: This concept ok, numbers not exactly what we're going for though**
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For active subscribers the average price paid for licenses was 121.25 so with inflation of 19.4 that would be 144.78.
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Tech counts by level is single=30 $4,770.00 total sales, 5=85 $11,815.00 total sales, 10=110 $13,090.00 total sales, 15=15 $1650.00 total sales, 20=100 $9,900.00 total sales
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(more 10 level techs than any other level and single is kind of lame)
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So, if we flat price no volume discount and want the inflation increase, if we stuck with 189 for everyone using the single price that's actually a huge amount for the up to 20 crowd
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The real revenue is in the subscription so a lower-ish license cost is where it's at
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But what if no one buys a subscription?? Maybe though, lower up front and no mandatory subscription which must drive some people away, means more sales when you have a sellable product like early days of AyaNova
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This is all about the initial license purchase, not the subscription which I haven't got to yet. Anyway, we were talking about a flat price per license no matter how many you buy. I still like that idea and was doing some calculations to figure it out. If we went that route then the pricing would make more sense to be calculated on the _average_ price per license sold, not on the single user price which would end up being 90% higher for a 20 user site. I used our existing active subscribers as a basis to calculate the average price of each license sold. I totaled the amount we charged for all active licenses then divided by number of techs overall that the represent and came to $121.25 is the average price we charge per license. So with inflation using your calculation of 19.41% that's 144.78 flat rate price per tech.
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Except the current v7 license comes with 1 year of support and updates and I'm thinking of 30 days initial support and updates so basically we're taking away 11 months worth of support and updates which is not nothing either, not sure if that needs to be factored in or not?
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The "value" of a support and updates subscription in v7 terms is 35% of initial license price so using the average that's $42.43 a year per tech or $3.40 / month per tech.
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So of that 121.25 we are saying that the tech / license portion is 78.82 and the support and updates portion is 42.43
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**UPDATE CHANGE OF CALCS HERE, PRIOR WAS BASED ON SALES HERE ON OUT WE USE ACTUAL LISTED PRICES**
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Revenue for current v7 users based on subscription only, not new sales and only AyaNova licenses:
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Single, 30 active @$55.65 per=$1669
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Up to 5, 17 active @$243=$4131
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Up to 10, 11 active @$416=$4576
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Up to 15, 1 active @$577=$577
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Up to 20, 5 active @$693=$3465
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QBI, 10 active @34.65=$346.00
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So currently $14,418 total revenue for tech subs alone, that needs to like triple just to be worthwhile
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Actual we are going to use method of calculating average license price is to not use sold counts but actually just listed prices on the pricing page so:
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1=159.00 = 159 per user
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5=695.00=139 per user
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10=1190=119 per user
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15=1650=110 per user
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20=1980 =99 per user
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Average here = 125.00 per user so not much difference
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This means that the average v7 subscription charge per year is $32
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Which means that the average v7 true initial license charge is actually $93 (93 + 35%=125)
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And this also means that in v7 the subscription is worth $2.66 (avg) per month (32 / 12)
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o if v7 was using our new system it would mean we would charge $93 for a license plus $2.66 for the initial 30 days support for a total of $95 (rounded down), then if they purchase a sub it would (in v7 prices) be $32 for 12 months.
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Meaning if use 25% inflation figure v8 would be 95+25% $118 for the license and $40 license for a years sub and updates.
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##### How does it work out?
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Gamed out new pricing based on above system
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All license prices come with 30 days support and updates (maintenance)
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After 30 days runs out they can NOT upgrade nor get support without a subscription.
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**TODO** Some kind of system to prevent just not buying a sub until they need it like a discount to maintain one but a higher charge to purchase, i.e. it's like they are buying a new release in addition to the subscription
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A yearly optional maintenance subscription can be bought which entitles to support and updates including major version releases, if it lapses there is some kind of extra high penalty to start up again but it's not full price so there is _something_ of value in being a prior customer (or is that being too nice?)
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V7 PRICING FOR COMPARISON
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(price/maintenance WHICH FOR v7 is only in _SUBSEQUENT_ years, not first year)
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1 user $159/$55.65
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5 user $695/$243 (139/48.6 each)
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10 user $1190/$416 (119 each)
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15 user $1650/$577 (110 each)
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20 user $1980/$693 (99 each)
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50 user $3950/$1382 (79 each)
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QBI $99/$34.65
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HYPOTHETICAL PRICING @ 35% maintenance
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1 user = $118, maint=$40 ($158 if bought together)
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5 user = $590, maint=$200 ($790 together)
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10 user = $1180, maint=$400 ($1580 together)
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15 user = $1770, maint=$600 ($2370 together)
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20 user = $2360, maint=$800 ($3160 together)
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50 user = $5900, maint=$2000 ($7900 together)
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Ok, that's too low almost no one is paying more, I still like the flat license price for this though, it's easier than the fuckery out there in the world and these are really crazy value for money, like 100:1 or more so let's revamp, the cost of development is uber high so lets bump way up the subscriptions, instead of 35% let's make it 50% and see
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HYPOTHETICAL PRICING @ 50% maintenance
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1 user = $118, maint=$59 ($177 if bought together) (minimum 2?? this is way less than a single hour bill out rate)
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5 user = $590, maint=$295 ($885 together)
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10 user = $1180, maint=$590 ($1770 together) (Here and down are our bread and butter and they're barely higher)
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15 user = $1770, maint=$885 ($2655 together)
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20 user = $2360, maint=$1180 ($3540 together) (70% increase in yearly maint)
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50 user = $5900, maint=$2950 ($8850 together)
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SCENARIO: KEEP V7 LEVELS, INCREASE EACH LEVEL BY 25% INFLATION AND MAINT %50 INSTEAD OF 35%
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(price/maintenance)
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1 user $200/$100
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5 user $870/$435
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10 user $1485/$742
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15 user $2060/$1031
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20 user $2475/$1237
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50 user $4937/$2468
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QBI $125/$63
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SCENARIO: with 30 days support only and optional yearl maint. A tech is worth on average 100 / hr so do maint at 100 and initial at 35% higher flat no discounts
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\*\*\* MARKET THIS AS $ per tech per month as it's fucking cheap when you look at it that way
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POTENTIAL **UPDATE, NOT YET ACTUAL** NEW PRICING
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###################### TODO: revisit subscription pricing, too high, set to much lower but minimum 100/month effectively by x minimum licenses to purchase
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(UP FRONT PRICE / YEARLY SUPPORT AND UPDATES)
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1 user $135/$100
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5 user $675/$500
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10 user $1350/$1000
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15 user $2025/$1500
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20 user $2700/$2000
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50 user $6750/$5000
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QBI $135/$100
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So hypothetical profit if using this system with 2022 subscription counts would be:
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340 licenses \* 100 dollars = 34,000 dollars
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QBI, 10 active @100=$1000 so 35,000 dollars per year
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Newcomers would double that in the first year becuase they buy the license then the main or maybe not maint but we get more than the maint in year one anyway.
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#### AVERAGE HOURLY BILILING RATES FOR SERVICE COMPANIES 2022
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Plumber 75-150 average 112.50
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Electrician low average 75/hr
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General contractor 45
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Auto Mechanic 102
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HVAC 150
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96.8/hr average so let's say 100 / hr
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#### SUBSCRIPTION / SAAS
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##### Must be tied to active users
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That means all users who login including customers
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Customers would be low usage though you can imagine so they could be much cheaper or let's say you get xx customer logins and $xx for a block of a big number of additional
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Like 100 customer logins included, 20 bucks a month for additional blocks of 100 more
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So it's clear looking over things that there's a cost for a droplet and adding x more users doesn't really add to that for us so if a $5 droplet works for a single user up to let's say at least 10 users, just speculation, we make way more money off the 10 user. The price for a single user must be increased to accomodate that or...we host more than one site on a single droplet to offset the cost, but charge enough to move them up to a higher level without needing to increase the charges to compensate.
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so pricing should be the highest normal droplet we can use
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The range is $64/month/user at the top end (minimum 2 users though) to around 12-15/month/user at the lower end which usually corresponds to 10+ user counts
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Single user is always most expensive for most sites and I can understand why as it's economy of scale
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Current subs revenue per TECH license is 3.50 per month ($4.375 in 2022 dollars) and we have 340 technician licenses active right now. If they all paid monthly that's $1190 dollars a month in current pricing in support and updates subscriptions alone. In 2022 dollars with inflation that would be 1,487.00 which is only $17,850 yearly revenue, no wonder we're poor. This is unsustainable clearly.
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So let's imagine a different scenario, let's say there are .75 users for every service tech in a business so 340 + 255 = 595 users if they all switched to SAAS
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WAYS TO FIGURE
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Assumption, average server cost will be 20/month per customer (hopefully more like 7 but in some cases 21 or worst case 68)
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Assumption / fact 73% of our existing customers are 5 and down and most of them would need more staff users on top of techs except the singles I guess
|
||
Assumption 250 customer User included 20/mo for blocks of 250
|
||
|
||
WHAT IF we just charge double the perpetual maint rate?
|
||
|
||
Maybe double the perpetual maint price so 16.66 rounded up to 17 per month per user?
|
||
|
||
**WHAT IF triple maint** we just charge $35/mo (yearly 12.5% discount and the assumed price everyone would pay) $40/mo (monthly) about triple the maint price
|
||
|
||
so for one user our profit if they paid yearly would be assuming a 7 dollar server 35-7=336 dollars per year, maybe not worth it so minimum 2??
|
||
two user 70/mo-7=63\*12=756/year, that should be less than 1 hour of my time average per month to be worthwhile, like seconds at most
|
||
|
||
5 user would be 175/mo-7=168\*12=2000/year
|
||
|
||
10 user would be 350/mo-7\*12=4116/year
|
||
|
||
**WHAT IF 50/user/mo** $50/mo per user based on yearly or 56.00/mo based on monthly
|
||
|
||
5 user would be 250/mo*12=*3000/yr
|
||
|
||
10 user would be 500/mo\*12=5000/yr
|
||
|
||
**WHAT If quadruple maint (TOO HIGH)?** I have to do a lot of coding to keep retaining so it needs to be worth our while so 4 times the maint rate? (66.66, round to 65) 75/mo
|
||
1 user 65-7=58\*12=696/year
|
||
5 user would be =3480, ulp! that seems high, good for us though!
|
||
10 user $6960
|
||
|
||
##### UNKNOWNS TO FIGURE OUT
|
||
|
||
Domain work (pricing and practicalities)
|
||
Email (pricing and practicalities, like do we do this under our domain or)
|
||
Storage practicalities (pricing just a factor)
|
||
Server sizing
|
||
|
||
###### Server costs
|
||
|
||
Once we're rolling with cash flow it would make sense to just rent a huge dedicated server and put multiple accounts on it as it would be very controlled we'd know who and what is using it not shared etc
|
||
|
||
Ideally we'd put users individually on the cheapest server available but in practice maybe what we want to do is rent a bigger dedicated server and split users on it (though they need to be in the same datacenter for that to work)
|
||
|
||
We'll allocate the $7/mo server to single users so that's 30 techs plus .75 staff so 52.5 users total
|
||
BUT, let's count on the 14 a month server and worst case the 68/month server dedicated
|
||
We can probably allocate the same 7/mo to all others and maybe incrementally go up a few before hitting the Absolute worst case scenario i.e. most expensive server ever likely required (not counting storage extra or email costs if we provide which maybe is an add-on??) would likely ever be is dedicated 8gb 2 cpu amnd 50gb storage at $68.00 per month so that would likely be the top end requirement for a pretty big user.
|
||
|
||
Maybe it's an idea to always use NAS block storage out of the gate for attachments and just expect it or add-on 10bucks for 100gb block storage is an option.
|
||
What is scotts total storage again I forget I think it was 4gb or something??
|
||
|
||
So the cheapest license cost if we said 12 per user for 10 and up hypothetically would mean a worst case scenario of 120 bucks a month revenu for a 21 dollar a month outlay for server so profit of about 100 bucks a month on the 10 users SAAS versus current revenu of 35 dollars a month for those same 10 users hmm...
|
||
|
||
of course we would use the cheapest server set up monitoring and bump them up if we see it pegging out, going to take some time to figure this shit out
|
||
|
||
Maybe the way to look at this is a basic price with options that directly correspond to digitalocean add-on's so fixed to 25gb total storage for the droplet initially
|
||
|
||
##### Add-ons upgrades
|
||
|
||
- STORAGE: So we assume a cheap ass droplet and offer add-on's like more storage attachment space for XX / mo which is really just the digitalocean pricing plus a premium overhead for contingencies if they want it
|
||
- ATTACHMENTS: we need an add-on for larger attachers, i.e. normal one is considered lite on attachments, no more than 10gb total or somethign as a rule of thumb, if they have greater needs then it's an add-on priced as per digitalocean with wiggle room on top and profit
|
||
also needs to be their backup volume too, i.e. all file storage except db
|
||
- Customer logins beyond 250 included, blocks of 250 for 20/mo
|
||
- RAM / CPU: maybe we offer basic server but they can upgrade to levels for additional per month
|
||
- BACKUP: self is free vs we do is whatever digitalocean charges plus a premium
|
||
- Email, if they don't bring their own account we provide at a cost / sendgrid or whatever (I suspect people expect this to be included if turnkey from a phone or something)
|
||
- Anything we get billed extra for, as it stands we don't care how powerful they need, ayanova supports it, but we don't pay for it, they do.
|
||
- So, maybe the way to go is base everything off a tiny or next to tiny server and anything else they can pay for as an upgrade.
|
||
- MIGRATION, we migrate from v7 for them for a flat fee, it's potentially hours of work 200 dollars?, or they can do it themselves
|
||
- SERVER dedicated servers: premium dedicated servers, available starting at $70/mo
|
||
|
||
### Comparatives
|
||
|
||
(as of 2022-08-11)
|
||
|
||
#### Jobber
|
||
|
||
Jobber has good set of options comparable in many ways and has some more features for payment processing integrated etc, is an app based system but fewer strictly service management options no qb desktop integration but does qb online. I'd say it's better than AyaNova in terms of listed features but no idea for usability
|
||
|
||
1 user = 49/mo or 39/mo yearly
|
||
up to 7 users = 149/mo or 119/mo yearly
|
||
up to 30 users = 299/mo or 239/mo yearly prepaid This is where the majority of our customers would fall
|
||
|
||
They have a good license agreement terms that is very restrictive with wide open terminology giving user little to no rights and good terms for cancellations like NO REFUNDS etc saved a copy in xfer research folder
|
||
good text around bandwidth "substantially higher htan average jobber users" throttle terminate etc
|
||
|
||
Yearly payment discount 20%
|
||
|
||
Bottom line Average per user price is $13.00/mo but not really broken out that way. Majority of our current users would fall into the $10/mo price range with them per user (up to 30)
|
||
|
||
#### AI Field management
|
||
|
||
This one is hella complex website and pricing, very confusing, my eyes glazed over a bit
|
||
Essentially there are 4 tiers with a separate price per user per tier. It's very hard to compare as some of our features are only in their most expensive tier but many of their featuers we don't have and are esoteric like translation by ai of something, ai routing of service calls I think, integration with some things like qb desktop which we can add, what's app, several things we could likely add ourselves.
|
||
At the very least I'd say the comparable is their "business" level which is 21.99 per user per month no apparent discounts for volume or payment over a year vs a month. The chepest is 9.99 and the most expensive ultimate level is 49.99 per user per month. so average would be 30. The level they push is the "advanced" at 38.49/mo
|
||
|
||
No yearly payment discount listed
|
||
|
||
bottom line $39 / monthly per user (at a guesstimate)
|
||
|
||
#### Housecall pro HVAC field service software
|
||
|
||
https://www.housecallpro.com/pricing/
|
||
|
||
Clean website pretty clear. Features are hella confusing though, the first listed feature is a credit card with low %, also a phone number, I can't figure out if this is service management or something else, weirdness
|
||
|
||
They take payments, a lot of these packages do, need to look into that it's common.
|
||
They have a "local phone number" whatever the fuck that is weird things these companies offer, not strictly service
|
||
Three tiers but only two have listed pricing.
|
||
|
||
quoting is an addon for 40 a month, recurring service 40 a month
|
||
The one user is fucking wierd it says chat between users but only has one user so wtf?
|
||
|
||
I think the other tier is more comparable at 169/mo or 129/mo yearly 1 to 5 users qb integration, no quote +$40 or pm's + $40 each 40/mo so to compare to ayanova would be at least 249monthly, I don't know about the weird oddball features so I'll ignore them as they are missing a lot of what we do offer, I'm seeing a lot of qb integration included so I'm starting to think that's not an upsell but something to just include with SAAS
|
||
|
||
Bottom line $50.00/monthly per user
|
||
|
||
#### Kickserv
|
||
|
||
Weird one, they also sell credit cards oddly, so must be a kickback extra revenu thing, they all advertise the cashback benefits that scale with the level of license, fucking oddball shit.
|
||
|
||
They have 6 tiers with 3 lower ones with less features and user count and 3 larger ones with mroe features and bigger user count. problem with that is some smaller shops need the bigger features so I really think sticking with all features to all users without any bullshit is going to be easier for people to buy into and simpler to market with less fuckery.
|
||
|
||
Unlimited users is 299/mo which is 9/mo per user for a 30 count of users but could go unlimited. I guess we could offer an unlimited if we just threw in the price of a high end server and said fuck it do what you want.
|
||
Their 20 user comparable is$199.00/mo or again 10 bucks a month with a 20% discount for yearly, Im' seeing this number a lot but only when it's a significant number of users
|
||
10 users is 12 bucks per user per month
|
||
5 users is 12 bucks per user per month, I really don't know what they are thinking
|
||
up to 2 users is free but only if hyou sign up for their payment / credit card system which is fucking weird again so a kickback scheme of some kind tha tmust be pretty prefitable to be worth it
|
||
|
||
Discount 20% for yearly payment
|
||
|
||
Bottom line about 12/user/month kind of
|
||
|
||
#### Commusoft
|
||
|
||
https://www.commusoft.us/pricing/
|
||
|
||
They market as if they're huge, highly rated in the app finder site I am using which seems legit getapp.com
|
||
|
||
No user count tiers but feature tiers, this is lowest tier comparable to us:
|
||
|
||
$64.00 / mo per user, minimum 2 users!, yearly discount is 7% so not much there at all, no discount for higher user count, minimum 2 users so they swept all the 1 users off the board immediately, interesting and unusual, it all does make them seem better somehow as in we don't give a fuck, I don't know if they are better or not but it appears that way for certain.
|
||
|
||
Kind of the way I was thinking, you have 10 users you pay 64, you have 20 you pay 64, no discount. Hmmm... everyone else though has discounts and some are uber cheap.
|
||
|
||
You can get a contractor additional license for $5/day which is also interesting way to do it. No inventory no customer access but has a customer reminder for service sent via email.
|
||
|
||
10gb per user storage which is rarely mentioned but kind of makes sense as a way to do it I guess.
|
||
|
||
Bottom line $64.00 / user / month
|
||
|
||
#### Summary
|
||
|
||
So 20% discount for yearly billing instead of monthly seems pretty common
|
||
|
||
#### New idea perpetual vs subscription
|
||
|
||
There is something to be said for a subscription model even if we don't host it. In this system a "perpetual license" is a one time purchase and comes with no support or maybe a very short window they get to use it forever afterwards. The subscription is a rental service only aka a "term license", if they stop paying it stops working. Separate from hosted AyaNova.
|
||
Businesses like having the option because one is a capital expenditure and one is a operating expense so depending on teh businesses age and status they may favor one over the other.
|
||
|
||
CUSTOMER FACTORS:
|
||
|
||
| Subscription | perpetual |
|
||
| ------------------------------------------------ | ------------------------------------------------------------------ |
|
||
| Charged as operating expenditure | Charged as capital expenditure |
|
||
| Low up front cost | Large up front cost and cash outlay |
|
||
| Small impact on P&L year 1 | Big impact in P&L year 1 |
|
||
| Impact on P&L subsequent years | No impact on P&L subsequent years |
|
||
| All charges in one fee | Software updates cost extra |
|
||
| Automatic software updates | |
|
||
| Shift budget to department rather than big whigs | Big expenditure means need the big shots to approve and is complex |
|
||
| | |
|
||
| | |
|
||
| | |
|
||
|
||
OUR FACTORS:
|
||
|
||
| Subscription | perpetual |
|
||
| --------------------------------------- | --------------------------------------------------------- |
|
||
| Ongoing relationship with customer | Large up front revenu |
|
||
| Opportunities for upsell and cross sell | Price negotiated once |
|
||
| Investors value long term customers | Big impact in P&L year 1 |
|
||
| revenue more than a single license | ongoing revenue from maintenance and prof svcs (reports?) |
|
||
| so will benefit eventual cashout | (flat support update charges) |
|
||
| Revenue predictability | |
|
||
| NO need for legacy support | |
|
||
| | |
|
||
| | |
|
||
| | |
|
||
|
||
Links to read with good ideas:
|
||
This one lets you search actual product pricing for SAAS and has comments about pricing value etc https://www.getapp.com/it-management-software/a/service-now-com/pricing/
|
||
https://baremetrics.com/blog/perpetual-license-vs-annual-license-vs-subscriptions
|
||
https://baremetrics.com/blog/saas-pricing-models
|
||
https://www.getapp.com/resources/software-pricing-models/
|
||
https://www.pwc.com/mt/en/publications/assets/pwc-the-future-of-software-pricing-excellence-saas-pricing.pdf
|
||
https://www.milnerltd.com/news/software-pricing-strategy-licence-or-perpetual/
|
||
https://www.pricingsolutions.com/pricing-blog/subscription-based-software-pricing-how-to-migrate-customers-from-a-perpetual-to-a-subscription-model/
|
||
https://www.linkedin.com/pulse/basic-differences-between-saas-subscription-perpetual-frederic-hanika
|
||
|
||
#### Self installed
|
||
|
||
- $189.00 per technician
|
||
- inital purchase includes 90 days support and updates
|
||
- No discounts for bulk, same price, there is a discount for bulk support and updates though
|
||
- Existing users can purchase add-on techs as needed for this price, no discount since they already have the license via their existing support and updates
|
||
|
||
#### Hosted SAAS
|
||
|
||
Hosting is a later thing, concentrating on self installed for now but here are some initial thoughts on it
|
||
|
||
- $TBD, in general, price will be significantly higher than the self installed option to account for server rental costs for us and extra time to manage the servers, the rest of support and other factors costs us pretty much the same (monthly vs yearly a separate issue below)
|
||
- Price will likely be a factor of average server cost to rent and whatever time will be taken to manage them but must be in line with competitors so may not even be worthwhile, need to determine that later
|
||
- Code change required: license check internal change when in "Service" mode (already have service mode just not coded yet to count all active users instead of techs only)
|
||
- will be priced by active user NOT by tech alone as it must account for extra work load on our rented servers we need to pay for
|
||
- Must have monthly and yearly pricing that factors in the payment processor per-transaction charge (e.g. shareit 2.95 per transaction fee plus extra accounting hassle at our end)
|
||
|
||
##### Existing active subscriber users
|
||
|
||
For the software license part, there is no affect on active subscribers unless they need to add an addition license as we are giving them the v8 tech license at no extra cost with their subscription
|
||
|
||
##### Lapsed AyaNova users
|
||
|
||
They purchase as though brand new, the bonus for them is we will ensure they can migrate to v8 via whatever path necessary
|
||
|
||
### New license and sales scheme
|
||
|
||
PRICING AND PLANS THIS IS OFFICIAL HERE REPLACES ANYTHING WRITTEN ANYWHERE ELSE 2022-08-04 17:25:37
|
||
|
||
- PRICING, must figure that out sooner than later, spend some time and give it a think, read joyce's docs keep in mind new licensing scheme worked up with joyce
|
||
Once I have an idea run it past Joyce for final confirmation then shareit codes and purchase pages etc for website
|
||
|
||
PERPETUAL = 5 days trial
|
||
SUBSCRIPTION = 48 hours trial
|
||
Flat price per license regardless of how many no discounts for bulk price to be xx.xx
|
||
Includes 90 days support and updates after which they're on their own. In this way they don't feel coerced into a subscription which must be a turn off for a lot of people
|
||
Separately they can purchase a support and updates subscription within 90days they get a discount of the ongoing price, after 90 days it's full price
|
||
NO: this is changed to accomodate the UI - after expiration of subscription all users will get a popup dialog every login saying it's expired
|
||
First year discounts to be determined then renewal is higher price and status that way unless we raise it.
|
||
discount to account for 90 day free period that would normally get but can't change renewal date so pro-rate a discount I guess or some fucking thing to be determined, maybe this is about the ongoing renewal price
|
||
Subscriptions are tiered for the price and there are three levels
|
||
1 user paid xx.xx
|
||
2 to 10 users pay xx.xx
|
||
11 and above xx xx
|
||
|
||
Any add on has support and updates through AyaNova support and updates subscription so no separate support and updates for add ons
|
||
|
||
Automatically add support and updates if go from one tier to another? Ie they have a single and subscription and but 2 techs so how to automatically handle it?
|
||
If purchase in AyaNova then it could calculate and offer the correct purchase price and links
|
||
AyaNova purchase link sends DBID to our pricing.htm page where it will digest that and keep it for presenting tailored options (or they can manually enter their dbid)
|
||
behind the scenes rockfish will provide options to ayanova.com pricing page for eligable purchases
|
||
If a coupon is required then it can calculate the discount but will say click here to request your coupon at which time we (I) will make the coupon manually
|
||
We need that ultimately prorated price for new subscription if moving tiers.
|
||
|
||
#### Summary of Joyce's pricing work
|
||
|
||
See source document
|
||
Joyce did the work and figured out the inflation values etc.
|
||
|
||
##### HOSTED SAAS SERVICE
|
||
|
||
Competitors Hosted usually includes _all_ users, not just techs and I can see why since it affects traffic and usage considerably
|
||
bills per month and we get dinged 4% plus a 2.95 fee each transaction so need to increase considerably the price over a yearly charge
|
||
When it comes time to do this I will need to revamp the AyaNova license code to count all active users, not just service techs and it will need to be cheaper as we want to keep it simple, can view competitor pricing in her doc 20220112subscriptionoverview.odt to work that out
|
||
|
||
##### SELF INSTALLED
|
||
|
||
Basically Joyce's price for a single license if inflation factored in is 189.00 per license which sounds about right to me, in the past wew've had it as high as 199.00 per license so this is actually a discounted price
|
||
|
||
### Joyces email from jan 2022:
|
||
|
||
3 Inflation:
|
||
|
||
2016 to 2021 12.6% i.e. $159 in 2016 is up to $179 in 2021
|
||
2021 to 2022 6.81% inflation, expected inflation between 2021 and 2022 is a further %6.81 for total of 19.41% between 2016 and 2022
|
||
– price to offset inflation is $189 from $159.00
|
||
|
||
this is the government’s “inflation” – doesn’t really reflect actual costs or geographical locations but its a general start...
|
||
|
||
Example of what this would look like if existing AyaNova yearly subscriptions were increased by :
|
||
Existing Single $159 first year, renewal 55.65 -> 13.25/month 1st year, 4.63/month renewal
|
||
If increased 19-20%: Single $189 base, renewal of $66.15 -> 15.75/month first year, 5.51/month renewal
|
||
|
||
Existing Up to 5 $695 first year, renewal of $243.25 -> 57.92/month 1st year, 20.27/month renewal
|
||
If increased 19-20%: Up to 5 $829 base, renewal of $290.15 -> 69.08/month 1st year(13.81 per tech per month 1st year), 24.18/month renewal (4.84/month per month per tech renewals)
|
||
|
||
Up to 10 $1190.00 first year, $416.50 renewal -> Up to 10 $1419.00 base, renewal of $496.65
|
||
Up to 15 $1650 first year, $577.50 renewal -> Up to 15 $1969.00 base, renewal of 689.15
|
||
Up to 20 $1980 first year, $693.00 renewal -> Up to 20 $2359.00 base, renewal of $825.65
|
||
Up to 50 $3950 first year, $1382.50 renewal -> Up to 50 $4700 base, renewal of $1645
|
||
|
||
Having a different higher price for the first year rewards companies that STAY with AyaNova – this is a selling point and recommendation is to maintain this (i.e. initial purchase is higher, renewals are then lower)
|
||
|
||
Most/Some companies list their pricing PER MONTH but still require a year prepayment.
|
||
|
||
4. Examples of competitors pricing
|
||
|
||
Note that the smaller “cheaper” apps such as Jobber, WorkWiz, Fergus, Loc8 – are Saas (software as a service) with no additional hosting charge (price covers hosting and the app) AND charge per login users regardless if scheduled or non-scheduleable
|
||
|
||
“Hosted” now refers to when a customer purchases and owns software; each customer is treated separately, with individual instances of software, databases and servers. This model entails installing the software via a hosting center or internally on customer’s own servers, requires manual updating when convienent to the customer (is not pushed on them), etc. If customer stops paying for subscription, still can use the software just no updates/support.
|
||
|
||
Jobber:
|
||
https://getjobber.com/pricing/
|
||
Price is per user - A user is anyone who needs to log into Jobber at the office or in the field in order to view and/or manage the team’s schedule – in other words, scheduleable AND non-scheduleable both require licenses per login.
|
||
CORE - Monthly Plan - $49/mo ON SALE $35/mo for 1 user
|
||
CONNECT- Monthly Plan - $139/mo – ON SALE for $98/mo for Up to 7 users
|
||
GROW - Monthly Plan- $279/mo ON SALE $196/mo Up to 30 users
|
||
Additional Users $19/mo – for example if using the CONNECT and have 10 users price would be $155/month – approx $15.50 per month per user
|
||
Each (CORE, CONNECT, GROW) has more features than the next
|
||
Phone, Email and online chat support are ALL included at no additional charge
|
||
|
||
WorkWiz:
|
||
https://www.workiz.com/pricing-plans/
|
||
STARTER $65 / MO - Up to 2 Pro Users ($780 for the year)
|
||
TEAM $169 / MO Up to 6 Pro Users / Phone, Chat and Email support ($2028 for the year)
|
||
PROFESSIONAL $299 / MO Up to 15 Pro Users / Phone, Chat and Email support ($3588 for the year)
|
||
All plans are committed to annually – but they list pricing per month - (each additional user is $30 a month - $360 a year)
|
||
Users are anyone that logs in and/or is scheduled – so office AND techs count towards licensing
|
||
|
||
Fergus
|
||
https://fergus.com/pricing/
|
||
month to month pricing only – no year commitment. They prorate billing so ends being at the beginning of following months
|
||
$27 Monthly per Full User (minimum 1 Required) / $10 for “Timesheet user” which is a tech with limited access to just the workorder info
|
||
They have a Free plan with reduced features and max of 10 jobs (i.e. workorders) per month – a company can change their plan to Free and keep using (not sure how they recoup their hosting costs)
|
||
|
||
Loc8
|
||
https://www.loc8.com/pricing/
|
||
These are PER MONTH charges.
|
||
$10 USD(1 user), $39 USD(Up to 4 users), $99 USD(Up to 12 users), $199 USD(Unlimited users)
|
||
|
||
FreshService:
|
||
NOT comparable to AyaNova – used for online support, call centers
|
||
Has three different teirs depending on what features – NOTE they charge by “Agent” as looks to be used by online support - i.e.
|
||
$19/month , $49/month, $89/month
|
||
|
||
Salesforce:
|
||
Has different products depending on the need – i.e. their callcenter program is different than there “field service mobile” – has different pricing depending on
|
||
For “field service mobile” related – dispatcher is $150 A MONTH, tech is $150 A MONTH, contracter is $50 A MONTH – holy shit
|
||
|
||
ServiceTitan:
|
||
Uses same pricing model as us – per technician.
|
||
Unable to find pricing anywhere – you HAVE to contact them (they have over 1200 employees to service their customers) and provide details so they custom tailor the costs to you.
|
||
Annual “contract” only – committed and reviews talk about expensive, and sucks when something that was upsold ended up not being useful is still under contract and have to pay for – i.e. can’t trial aspects for a month or two, have to commit up front
|
||
|
||
Skedulo:
|
||
Also does NOT list pricing, and can’t find anywhere.
|
||
Annual price only – does NOT do monthly.
|
||
|
||
SimPro:
|
||
No where is pricing listed
|
||
|
||
ProBusinessTools:
|
||
https://www.probusinesstools.com/pricing.aspx
|
||
PBT Enterprise - Setup: $4,250 / $65/month per user - 5 User Minimum (min $325/month)
|
||
Support-Unlimited, Training-Unlimited, Data Backups, File Backups, Security, Integration, Standard Features Email Notifications Custom Reports
|
||
2,000,000 record storage, 50 Gigs file storage, customizations $125/hour
|
||
PBT Premium - Setup: $2,250 / $45/monthperuser - 5 User Minimum (min $225/month)
|
||
PBT Lite - Setup: $650 / $250/monthperuser - Up to 10 Users (min $2500/month)
|
||
|
||
5. Possible scenarios for AyaNova 8 onwards
|
||
|
||
I think existing customers will freak if jumped as high as Jobber (i.e. .$35 per month x 12 = $420 a year (versus our 1 user of $159 a year and then $56 renewals) if still requiring them to host themselves.
|
||
The expectation is that EXISTING CUSTOMERS would continue to get their existing subscription pricing ...with notification that increase will be coming, retiring of some, etc
|
||
Existing customers are needed until enough new orders come in – do not alientate.
|
||
Fergus and Loc8 pricing would be more in line to AyaNova pricing BUT they also provide it as Saas (i.e. everything is looked after by them, companies don’t install to their own server)
|
||
|
||
Don’t want to price AyaNova out of the market, nor under-price it. Needs more research into what the market will bear, what will bring “past” users BACK to AyaNova (we have email addresses – we shoudl use - note to be careful about European email addresses due to strict privacy/spam issues etc but that is another discussion and not sent out until AyaNova 8 is “solid” and not dealing with existing customers moving up etc – i.e. don’t overwhelm AyaNova support)
|
||
Ability to pro-rate (presently not possible with ShareIT – this and other issues are arggghhh )
|
||
I have looked into other payment processing companies, have a whole spreadsheet with two narrowed down with one the forrunner)
|
||
|
||
suggestion once AyaNova 8 is fully out:
|
||
|
||
1. Increase/consolidate subscription pricing – AND FOR EXISTING customers, especially who have been with subscriptions since 2016, 2017 onwards, give them a “discount” – basically discount “down” to same price as they paying now, for the next xxx amount of time
|
||
Example:
|
||
AyaNova scheduleable user subscription per - $xx/year / $xx/month
|
||
Renewals June of each year. Let them know that they are getting a DISCOUNT (so they pay same amount, but LOOKS to them they are getting preferential amounts – how it looks is important even if end result is same or slightly more...
|
||
2. Don’t really have to faze out support for older version, as our support/updates have always said we “support the latest version” which “means” we are not obliged to support AyaNova 7.6 or older once 8 is stable
|
||
|
||
NOTE:
|
||
Jan 18 2022 addition: ShareIT charges a minimum USD 2.95 + 4.00% of the product price for EACH transaction. So this means that IF we offer monthly subscription pricing as well as yearly, that the monthly HAS TO take into account the additional expenses: additional payment processing cost + hands-on to provide license, etc
|
||
i.e.
|
||
Single tech subscription if prepay for entire year:
|
||
USD$185.00/year (costs us 2.95 + 7.40 = $10.35) 185 – 10.35 = 174.65 “profit”
|
||
|
||
Single tech subscription each month over 12 months if use same year price divided by 12:
|
||
185/12= $15.42/month (costs us 2.95 + $0.62 =$3.57 x 12 = $42.84) 185 – 42.84 = 142.16 “profit”
|
||
|
||
So IF offer monthly subscription the monthly per price needs to be approx $40 HIGHER in cost $225/12=$18.75/month costs us $2.95 + 0.75=$3.70x 12 = $36.15 total for the year 225 – 36.15=$188.85 for year “profit” with 12 times the amount of accounting/licensing/etc
|
||
|
||
More to discuss but this is an overview
|