S
ScienceOfficer
Jiri---
The annual support renewal rate is shockingly low, but the demand for support is constant. The upfront fee guarantees revenue to support the development and delivery of the software. The profit my boss makes pays for me, and the initial handholding every new client needs.
Yes, if everyone paid their annual fees (as is common in the HVAC business, for example), everything would be clear about the business. When my client lets support lapse, I still find a way to help, as long as it makes business sense. My 28 year old installation, mentioned in my previous post, has bought little PLC stuff during my tenure--- but my boss and salesman get $100K/year in MRO business from the account, which is enough to justify my attention.
I reject the use of programming software as a loss leader. The software has value, its support has costs, and all of that must be paid for, somehow. Cheap software, in my experience, is worth the price. The payment has to be made somewhere. (And everything can be negotiated!)
An additional note: Our bestselling PLC programming and documentation software package costs $1100. If a one-time expense of $1100 is a problem for a plant, I can't imagine why I would want to call on it. Automation is supposed to be part of a profitable plant operation. $1100 is the cost of a small downtime or a minor mechanical breakage. If a one-time $1100 expense is a problem, the plant is undercapitalized, mismanaged, or failing, and not an attractive client.
Hope this helps!
Larry Lawver Rexel / Central Florida
The annual support renewal rate is shockingly low, but the demand for support is constant. The upfront fee guarantees revenue to support the development and delivery of the software. The profit my boss makes pays for me, and the initial handholding every new client needs.
Yes, if everyone paid their annual fees (as is common in the HVAC business, for example), everything would be clear about the business. When my client lets support lapse, I still find a way to help, as long as it makes business sense. My 28 year old installation, mentioned in my previous post, has bought little PLC stuff during my tenure--- but my boss and salesman get $100K/year in MRO business from the account, which is enough to justify my attention.
I reject the use of programming software as a loss leader. The software has value, its support has costs, and all of that must be paid for, somehow. Cheap software, in my experience, is worth the price. The payment has to be made somewhere. (And everything can be negotiated!)
An additional note: Our bestselling PLC programming and documentation software package costs $1100. If a one-time expense of $1100 is a problem for a plant, I can't imagine why I would want to call on it. Automation is supposed to be part of a profitable plant operation. $1100 is the cost of a small downtime or a minor mechanical breakage. If a one-time $1100 expense is a problem, the plant is undercapitalized, mismanaged, or failing, and not an attractive client.
Hope this helps!
Larry Lawver Rexel / Central Florida