Tight times, I'd go for the hourly rate. Of course, you might also start
charging a minimum that is about half the support fee, plus hourly billing.
That might force the customers to hedge their bets with an annual support
contract. As a matter of fact, you might even email those who don't have
support and inform them that you have listened to the masses, and you "feel
their pain"....

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf
Of MB Software Solutions General Account
Sent: Monday, July 21, 2008 10:37 AM
To: ProFox Email List
Subject: [NF] Yearly maintenance fees/support versus maintenance billing by
the hour

A client has been using FabMate Lite for 5 years without any further 
expense than the initial software.  It's been "courtesy" hours in the 
past 5 years, and probably not even 10 hours per year.  He calls me on 
Saturday and says they can't get into the program now.  I'm virtually 
certain it's not my problem, as nothing has changed in years.  However, 
I told him that I can't offer him free support any more.

I'm now giving away the FabMate Lite software for FREE and only charging 
for an annual maintenance/support contract should they choose to be 
supported.  (If it works for them "as is", then by all means that's fine 
too and free for them.)

So I basically told this client (who really hasn't paid anything to MBSS 
since Fall 2003 other than a few hundred for something the db guy did to 
screw up some files) that he'd need to buy a support contract.  He 
doesn't want to, and just wants to pay the hourly support rate.

How would you respond to this guy?  I'd really like to get those yearly 
support contracts (for approx. $1200/year), but this guy doesn't want to 
spend anything, and while I understand his point (...that he'd rather 
pay $150/hr for 7 hours per year than $1200/year as he's still ahead 
then in numbers), I want to make a smart business decision here to help 
drive revenue for FabMate Lite support (which is the only revenue stream 
for that product now).

Your advice appreciated!  tia,
--Michael




[excessive quoting removed by server]

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