AccountMate seems to have hit on all the major pain points for today's VAR:
1. Changing reseller margins (downward)
2. Non-local management of product direction and development
3. Publisher decisions seemingly made continuously, without reason and at whim
Their product description from Accountmate matches what most VARS are already selling. Fully integrated accounting software.
My concern with these offers (and most VARS have received probably a half-dozen variations) is they promise that commissions and development will remain as they are today.
The rates paid for sales are implied to be a steady reliable source of income (which nearly all other ERP publishers have proven is not true as they change depending upon the publisher's need to goose their bottom line).
I'm left wondering whether these types of offers (and I'm not singling out Accountmate - only using them as an example) draw anything but burnt out VARS looking for a free ride paid for by unreasonably high margin.
In general these types of offers tend to start off great. That is until they attract the deadbeat VARS that they do. Then it's not long before you might see shifts in margins -- or if the percent doesn't change then the amount you have to sell/purchase in order to receive that percent could.
Call me crazy - but I just don't see the free lunch in any of these types of offers..
April 14, 2010 
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| | | | | | | |  A message from David Dierke, CEO
and President of AccountMate Software I'm writing to you today because we're seeing increased interest from ERP resellers who are looking for an alternative ERP software vendor. They have grown disenchanted with the constant changes to their discount structures and product development plans.
Like you, our Business Partners understand that as times change so do the unique needs of their clients. The flexibility and modifiability of our source code software solutions have been the foundation upon which their successful practices have evolved and become highly profitable. If you join us as an AccountMate Business Partner, your organization can experience far greater sales opportunities since our core product solutions can be customized to exceed the needs of your prospects and established clients. We would encourage you to investigate the value proposition of AccountMate software. Please call me today if this is a good time for you to take a look at AccountMate, its coding language and modification options. If you are wondering about making modifications and the ability to start customizing AccountMate software for your clients, we can offer you product training or our Professional Service group to serve as your modification arm. Our current development process includes an additional .NET platform to provide even more future growth. I would genuinely like to get you up to speed on our progress in this area.For 26 years AccountMate has consistently distributed accounting and business management software solutions through our Channel of Authorized Business Partners. Having received numerous industry awards, AccountMate is highly acclaimed for flexibility and ease of use, meeting the unique needs of businesses of from small start-ups to divisions of Fortune 100 corporations. Long term success in business requires a strong partnership. You have my assurance that AccountMate's Management encourages direct and available communication with our Partners. And since we are a privately-held company, we are able to have complete control of our long-established product strategy. No quick decisions or change in management will thwart our Product Roadmap. We are committed to the success of our Business Partners and want to assure you that our products, services, maintenance and subscriptions to clients are 100% sold and provided through our Business Partners. I've prepared a few Q & A's below to answer some of your questions. I'm available to speak with you. Ultimately the buck stops here. You can reach me at 707-774-7555 or at DavidD@AccountMate.com.
David Dierke
President and CEO | Q. Is AccountMate supplying anything other than accounting software? A. Yes, we're distributing a variety of software that tightly integrates with the accounting modules. We're distributing CRM software that completely integrates with our accounting software. One example of the tight integration is that it includes the ability to create a quote in CRM and process it as an order on the accounting side. We're also distributing other programs, such as Business Intelligence and Business Alert software. And to keep things simple, all distributed products count toward your reseller discount and co-op credit as if they were core accounting software. Of course we have dozens of third-party add-on software products. The Vertical Solutions Catalog is here. | Q. What if I have a client ready to purchase AccountMate software but I'm not ready to do the modifications?
A. Our Professional Services Group is prepared to work as your subcontractor. They will work with you to spec the modification and then they will write the code. You deliver it and collect from your client. | Q. What is AccountMate's dealer discount plan?
A. It's based on all your sales (software and maintenance) added together for the last four quarters. Each time you make a sale we recalculate your discount for the next quarter. As soon as you qualify for a higher discount for the next quarter, we apply it immediately. The result is you get to higher discount levels sooner and you keep them longer. | Q. What's the pricing on AccountMate's software? A. Retail pricing for the LAN and Express Products are $1,000 per compiled module and an additional $1,500 per source module. The SQL products are $1,500 per compiled and an additional $1,500 per source module. Our sales philosophy is that your clients only need to purchase the source modules they need to have modified. For example, if they purchase five compiled modules but only need source for AP, they only need to pay for one source module, not source on all modules. | Q. What are your plans for continuing your Visual FoxPro (VFP) products? A. Our plans are to continue selling and supporting our VFP products as long as there is interest in them from Business Partners and end-users. In fact, we have committed to supporting our VFP products for eight years from release. The products that will be out in a few months will be supported until at least 2017. | Q. Will the current version be the last VFP product? A. No. We are working on the next version and have no end in sight. | Q. So are you betting the company on VFP?
A. That wouldn't be prudent. We're developing a full .NET accounting product line. When that becomes available we will continue to sell both VFP and .NET accounting software. The .NET product will NOT replace the VFP products. You and your clients can decide which platform is best for them. | Q. Will AccountMate try selling maintenance to my clients?
A. That's simple, NO. You order maintenance plans (new and renewals) from AccountMate at a reseller discount and sell them to your clients. Your purchases for maintenance plans (new and renewals) are counted toward your reseller discount at the same rate as software. We're all about keeping things simple. | Q. How can I get more information?
| | Thank you for taking the time to read all of this. The sooner you get in contact with us the sooner you can decide if AccountMate is the right choice for your business and your clients. I wish you success regardless of the direction you choose to take.David Dierke
President and CEO
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AccountMate Software Corporation | 1445 Technology Lane, Suite A5 | Petaluma | CA | 94954 |
