> Basic math for a client with 20 users and 5 apps for 24 months: > * 20 users x 5 apps x 24 months x $15 = $36,000 > * Partner commission for 24 months (~50%)= $18,000
No, this is a common usecase: Here is a typical use case (with old pricing), 40 users: - Public Price: $18720 - Partner Price: $9360 (a ready partner) - Price sold to customer: $13.000 - Implementation Cost: $90.000 Maintenance part of the TCO: 12.6% Commission part of the TCO: 3.5% > > On Sun, May 18, 2014 at 11:47 AM, Fabien Pinckaers <f...@openerp.com > <mailto:f...@openerp.com>> wrote: > > Hi, > > I just wrote a blog to explain the new pricing: > https://www.odoo.com/blog/1/post/158 > > Please read it before going further in this email. > > > I'll try to answer most questions here: > > 1/ How to compute the price? > > The price is: # total of users X # of apps bundle X 12€ > > 2/ Why don't we charge according to real usage? (e.g.: 5 users on CRM, 3 > on accounting, 7 on projects?) > > Because it's impossible to predict for yearly contracts! Quoting would > become a nightmare and a lot of people would abuse from this unclear > situation. (a customer would start with a low price but three month > after we would have to upsell him because of the number of users on some > apps) > > Lets take the following use case: a company of 10 users that uses CRM, > accounting, projects. They have 3 sales person, 4 consultants, 1 > director, 1 secretary and 1 accountant. > > When you do a quote for this customer, how many users do they have per > application? > - is the director using accounting and CRM? > - can the sales have read access to project for follow-ups to their > customers? > - can the accounting check sales orders coming from the sales? > - is it the secreatary that give access rights to others users? > > I checked in our production database. We have 7 persons working in the > marketing department. If one do a quote of 7 users for the marketing > application bundle, it's totally under-estimated. > > In reality, we have 45 users on marketing application, not 7: > - the Professional Service team that built the certification sample > exam on the website (survey) > - users that train others users on features > - managers that need statistics about events, mass mailing, ... > - most sales need an access to check prospects on events, > - system administrator need an access to allocate access rights and > test for others users > > 3/ Is it expensive? > > Absolutly not. It's 2x to 3x cheaper than the market average. Check this > comparison of software vendors: > https://www.odoo.com/website/image/ir.attachment/537400/datas > > Moreover, partners get 50% to 60% discount on the public price. It means > gold partners pay only 4.8€ / $6 per user and per application. Whatever > the market, it's super cheap and super competitive. > > > 4/ Is it an increase of the price? > > For some customers: no. (1-3 apps) > For some customers: yes. > > The biggest increase would be around 2x more for one particular customer > that uses a lot of applications. (6) I never saw a company running 10 > apps and if they do, it's normal that they pay 120€ per user because the > value they get from Odoo is huge. No other product can offer this. > > > 5/ localization & customization > > Odoo has a lot of huge advantages compared to traditional ERPs: > - higher scope: website, ecommerce, cubes analysis, CRM, ... > - better usability, faster implementation > - better flexibility: allows custom development and high level config > > Odoo also has a few disadvantages compared to traditional ERPs, the main > one is the localization in some countries. (something we will fix for v9 > as we will massively invest in accounting l18n) > > Odoo has a lot of PROS and a few CONs. But the few CONs are largely > compensated by the PROs. As the product is better, economics tell us > that the product must be more expensive. > > Not only we are not more expensive, but we are at least 2x to 3x > cheaper. And, if you take the partner price 4.8€ per user and per app, > we are 6x cheaper than the competition! > > I do not know a lot of industry where a product can be 2X cheaper for a > better quality. > > One should not be frustrated about the price. > > @marcelo > > I recently read the posts by the Compiere founder explaining what > > went wrong after he got VC money. Read it and it will look like it is > > all happening again. > Every time we do a change in the community people cry: take care of > forks, read Jorge's blog, VCs are evil, OpenERP does not understand its > users... > > Odoo is not comparable to Compiere/Tryton/Openbravo or others. The > sustainability of a product is not related at all with fork threats, > failure of others open source software or what ever. > > The sustainability of every product is directly linked to it's ability > to create a sustainable model where partners and publishers get enough > revenues to grow their activities on the product. > > This requires a lot of things like: having a great product allowing good > service margins, a good price for the publisher, happy customers, etc. > > > What kind of business puts potential clients in front of active > > paying clients? The model is wrong wrong wrong. > > What's wrong is to have a pricing so cheap that it does not allow to > sustain the development of the product, or too few customers because the > product is not competitive. That's what killed some products. > > > If Odoo was a ready-to-use software then the model would make a > > lot of sense. But they are ignoring the importance of localization & > > customization. If I wanted off the shelf software I wouldn't bother > > going open source. > > Our customers don't choose Odoo beause it's open source. They choose > Odoo because it's better (products and/or servives of partners) > > We should stop being frustrated of being open source. It's not because > we are open source that we should be cheaper. The only thing that > matters for a customer is to have a great product at an affordable > price. > > Open Source is not a customer value, it's a way to develop better > products. > > > > Also, this thing that partners will not get any commission > > on contracts with more than two years is REALLY nonsense. It > > essentially means that the contract will become 50% more > > expensive on the 3rd year because the partner will need that > > revenue back and of course it will be important for the client > > to keep bonds with the partner. It is really sad when > companies > > pull this sort of crap on their "partners". > > My understanding is that partners don't sell Odoo Enterprise because of > their commissions. They sell it because they need it for their customers > and because this allows them to sell more services. (and this is how it > should be) > > The part of the commission on Odoo Enterprise is usually lower than 4% > of the revenue a partner take on a project. So, their motivation is not > on the commission. > > I may be wrong. I am open to discuss this during the community days. > > > > Hope it helps better understanding this strategic move, > Thanks for the feedback, > > -- > Fabien Pinckaers > Odoo Founder > > Phone: +32.81.81.37.00 <tel:%2B32.81.81.37.00> > Web: https://www.odoo.com > Twitter: @fpopenerp > > _______________________________________________ > Mailing list: https://launchpad.net/~openerp-community > Post to : openerp-community@lists.launchpad.net > <mailto:openerp-community@lists.launchpad.net> > Unsubscribe : https://launchpad.net/~openerp-community > More help : https://help.launchpad.net/ListHelp > > -- Fabien Pinckaers Odoo Founder Phone: +32.81.81.37.00 Web: https://www.odoo.com Twitter: @fpopenerp _______________________________________________ Mailing list: https://launchpad.net/~openerp-community Post to : openerp-community@lists.launchpad.net Unsubscribe : https://launchpad.net/~openerp-community More help : https://help.launchpad.net/ListHelp
