template - retail pricing guide - software advice · pdf filemany pos terminals or on-premise...
TRANSCRIPT
Here’s What We’ll Cover
Pricing models
Pricing ranges
Unexpected costs
Pricing of popular systems
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Two Common Pricing Models
An upfront sum for the license to own the software and use it in perpetuity. This is the more traditional model and is most common with on-premise applications.
A monthly fee to use the software for a specific amount of time. Subscription pricing became popular with the advent of Software as a Service (SaaS).
Perpetual License
Subscription
Comparing Costs by Pricing Model
Upfront costs
Perpetual License
Subscription
Recurring costs Other costs
HIGH LOWMEDIUM
LOW LOWMEDIUM
Perpetual License Costs
• Perpetual license fee • Point-of-sale equipment costs
• Customizations
• Installation/setup
• Integration with existing systems
• Maintenance (updates, patches & upgrades)
• Premium support services• Merchant account fees
!Customization and integration costs can be significant--often as much or more than the software--if you choose to change the software substantially.
Upfront costs
Recurring costs
Subscription Costs
Customization and integration costs are often less costly simply because SaaS systems have not provided as much flexibility in this area. Although that is changing as SaaS systems evolve.!
Upfront costs
Recurring costs
• Point-of-sale equipment costs• Customizations
• Installation/setup
• Integration with existing systems
• Subscription fee
• Premium support services• Merchant account fees
Total Cost of Ownership
While a perpetual license may cost more upfront, the total cost of ownership typically converges with subscription packages over time.
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Visit our Total Cost of Ownership Calculator for a more detailed estimate.
Perpetual License Subscription
Total cost of ownershipconverges over time.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Cost ($)
Perpetual License Price Ranges
Starter
Mid-range
Enterprise
License fee
Functional breadth and depth
$600-$1,500/terminal
$1,250-$7,500/terminal
$7,000-$15,000/terminal
Subscription Price Ranges
Starter
Mid-range
Enterprise
Functional breadth and depth
$49-$150/terminal
$130-$450/terminal
$400-$999/terminal
Monthly fee
Often Overlooked Costs
Data migration
While this can be done in-house, most will want
to pay the vendor to transfer data.
Training
Often web-based training is included, but
vendors will charge for in-person training.
Hardware & equipment
This can be a major expense for buyers requiring
many POS terminals or on-premise servers.
Product Pricing Model Starter Mid-Range Enterprise
Revel POS 9
Perpetual License Fee
$999 N/A N/A
iVend POS 2
$1,190 N/A N/A
ShopKeep POS 1
Subscription (terminal/month) $69 N/A N/A
Counterpoint 9
$1,099 $1,166 $1,130
$895 $1,495 $2,495
GotMerchant Retail POS 4
Perpetual License Fee
$999-$1,299 N/A N/A
Silver 5
$300-$888 $225-$875 $225-$1,200
$49 N/A N/A
$49 N/A N/A
Microsoft Dynamics 8
$59-$129 N/A N/A
Pricing for Popular Packages
Perpetual License (per concurrent user)
Subscription (terminal/year)
Subscription (terminal/month)
Ambur POS 6
Lavu POS 13
Openbravo Commerce 14
Perpetual License Fee
Perpetual License Fee
Subscription (terminal/month)
Subscription (terminal/month)
LightSpeed POS 11,12
Product Pricing Model Starter Mid-Range Enterprise
Epicor Retail 15
$3,000 $7,500 $15,000
Amber POS 9,10
$149 $269-$399 $499-$999
N/A $1,500-$1,800 $1,250GoldTech Retail Manager 9,16
TBA TBA TBA
$1,098 N/A N/A
$89 N/A N/A
Pricing for Popular Packages Continued
$0-$35Subscription (terminal/month)
$59-$85
2.75-3.5%
$169
N/AN/A
Subscription (terminal/month)
Perpetual License Fee
Subscription (terminal/month)
Perpetual License Fee
Unavailable Unavailable Unavailable
Unavailable Unavailable Unavailable
Subscription (terminal/month)
Perpetual License Fee
Subscription (terminal/year)
Square 3
Vend 7
Subscription (% of transactions)
Perpetual License Fee
Sources of Pricing Data
The pricing information included in this presentation was collected from the vendors' websites in April and May 2014. Software Advice is not in a position to provide detailed price quotes on behalf of these vendors, and this data should not be considered as such. The information is simply a compilation of what is publicly available online. Buyers should contact the software vendor for actual pricing. Below is a list of sources for where this information was collected:!1. http://www.shopkeep.com/pricing
2. https://store.ivend.com/c-35-ivend-pos.aspx
3. https://squareup.com/pricing
4. http://www.gotmerchant.com/retail-pos-system.php
5. https://www.ncrsilver.com/pricing.html
6. http://shop.amburapp.com/products/ambur-ipad-pos-license
7. http://www.vendhq.com/pricing
8. http://www.pointofsaledynamics.com/Microsoft-Dynamics-Software/b/6192411011?ie=UTF8&title=Microsoft+Dynamics
9. Pricing information obtained directly from vendor.
10. http://amberpos.kajabi.com/sp/2689-fe2689
11. http://www.lightspeedretail.com/cloud/pricing/
12. http://www.firmology.com/2013/10/09/stay-on-par-with-a-better-pos-system-for-your-business/
13. http://lavu.com/ipad-pos/lavu-pricing
14. http://www.openbravo.com/products-editions-pricing
15. Vendor unable to provide pricing information at the time of publication.
16. Vendor offers volume discount pricing.
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