Small buyers sometimes (rightly) get frustrated about this. The flip side is that the cost of sales is so high for the big companies (BMWs are expensive!) that if you're perceived as small-time, they will not be very interested at all - they'd rather use their time on big contracts. Give a sales person a call on 23 December with $2M in your pocket and you'll see what I mean. You will also get their attention at the end of a bad quarter (most quarters), because they have non-negotiable quotas to meet.
For example, you will get people's attention over about $1 million, because the sales people are almost always on commission). So sales people are highly motivated! Negotiating with them is not for the faint of heart, but you have plenty of leverage with them. Sales is like a box of chocolates: you never know if you'll get a new BMW M-series this quarter, or get fired. (In case you're wondering if that price is a typo, it isn't.) I think some customers were paying an effective price closer to $40k per seat, because they wanted to spend a large amount of money. Most of them will also negotiate almost anything you can dream up.įor example, the list price of GeoProbe was, about 10 years ago, something like $125,000 per seat, plus 18% of that amount per year in maintenance. These usually work out to be more expensive. Most of these companies also offer lease deals, where you might pay for monthly access. you want to pay for the software like you pay for electricity, vs like you pay for appliances), and the length of the contract they are willing to lock into (3 years, say).
The negotiable price, in turn, depends on the number of seats (licenses, essentially), the degree to which licenses can be shared or pro-rated (e.g. There would be a riot if they knew what, say, XOM, or Pemex were paying. This is mainly because their customers are all paying different amounts, depending on the deal they are able to negotiate. Software companies are pretty secretive about their price lists. I can't give you prices, but I can tell you a bit about how the pricing and sales process works.
I used to work for Landmark in a technical sales role.
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