Advice needed

Bombe

Hi Folks,

Need a little help here

I have developed an online database which helps companies manage their energy programs. I am in talks with a large organisation who want me to come back to them with a price on licensing the product so they can put there logo on it and give it to there customers for free.

It is not exclusive so we can still sell it ourselves.

At the moment we price each user at €20 per year but they want us to give them a price on

· Price per user per year for them.
· Price for the package for the year.

Any advice would be welcome

How many customers do they have?

And how easy is it for them to get an alternative supplier of this software? Thats whats you need to ask yourself.

If theres no ongoing cost for you to maintain the software its all just cash for you. It also sounds like a deal you dont want to be missing out on by being too greedy.

Perhaps do yourself up a price chart with a sliding scale of prices for X amount of customers. You could do something like 1 customer = 20 euro, 100 gets 10% discount, 1000, 20%, 10,000 30% and so on.....

AndyJB

Bombe wrote: »

Hi Folks,

Need a little help here

I have developed an online database which helps companies manage their energy programs. I am in talks with a large organisation who want me to come back to them with a price on licensing the product so they can put there logo on it and give it to there customers for free.

It is not exclusive so we can still sell it ourselves.

At the moment we price each user at €20 per year but they want us to give them a price on

· Price per user per year for them.
· Price for the package for the year.

Any advice would be welcome

Hi,
Are the potential licensee a known name?
Any idea on the numbers they're talking about? How would you police this if you go down the per-user route?
Will/are they expecting ongoing upgrades etc?

What about ongoing support? All software is 100% bug free until you put multiple users in the mix!! If end user has a problem who'll they ring for help? You or the licensee? If multiple end users called with a problem do you have the people power to handle it?

I presume you have existing customers that needed handholding at some stage, so as an additional sales hook why not offer to do the same for the licensee users. If licensee has a phone system with menu options (you know the annoying ones 'dial 1' for sales etc etc) add your number as an option or offer a separate direct dial number to your desk. You can get a VoIP number for about €10 per month with v-mail and diverts.

Be v-clear on your core support hours!

Whatever you agree make sure you get it all on paper before you start and get payments from them in full or failing that by monthly DD. Don't forget to get a deposit/setup fee from them as you'll have some work to do to set it all up.

Will having them using your system help you sell it elsewhere? Do keep that in mind as well.

Hope this helps.

Best of luck.

Bombe

Cheers Guys,

To answer your questions they have over 20,000 comerical customers and are a well known brand, As far as my research goes there is not another package like ours out there.

On the policing of the per user qtys we woiuld have to meter the additions or have access to there server or setup a link from there server that it sends an auto report every month end..

I like the % idea it is something that co8uld make alot of sense to them...

Thanks for te feedback guys, if you have anything else to add please let me know....