Second and third tier firms continue poaching efforts for ERP VARS

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 Top
AccountMate Software
David Dierke CEO 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?

A.  If you need detailed pricing and training information contact Bill Bailey, our Director of Sales, at BillB@accountmate.com or 707-774-7537. For an overview of our products, visit us at our reseller information center.
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

AccountMate Software Corporation | 1445 Technology Lane, Suite A5 | Petaluma | CA | 94954

Filed under  //  Accounting Software   accountmate   david dierke   ERP  
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Posted

Did Sage BPAC Members Get More Exposure Than They Bargained For

Sage's BPAC stands for Business Partner Advisory Council. They're a group of distinguished VARS who meet regularly with Sage to provide feedback on product plans and discuss other important issues.

In an email sent yesterday to Sage's Mid Market channel there was reportedly a major gaffe.

The email was intended to report on the progress of the BPAC - and users could click on one of the two links to download a summary of what was discussed at Sage's BPAC meeting held February 17 - 18 in Dallas.

According to a LinkedIN group member the second link titled "View the list of Mid Market BPAC members" should probably more accurately have been titled:

"View the list of Mid Market BPAC members, their sales for the year (broken out by new, upgrade, CRM), and also take a peek at who we didn't select and why".

Oops.

The links to the email download documents were quickly redirected to http://www.sagesoftware.com but apparently not before the document made it into the wild.

Don't you love the Internet!


-Wayne

Join my twice monthly MAS90 email newsletter - http://bit.ly/mas90news

   
Click here to download:
Did_Sage_BPAC_Members_Get_More.zip (775 KB)

Filed under  //  BPAC   ERP   linkedin   mid market   sage   Sage North America  
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Posted

Netsuite for iPhone available in the iTunes App Store

Netsuite is one of the first ERP applications that I have noticed in the App store. Most of the functionality is read only viewing of trends and data.

Filed under  //  apple   cloud computing   computing   ERP   iphone   itunes   netsuite  
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Posted

Tips: ERP Consultants - Now is the time to plan for your busy season – 4 tips to make $20,000 more in 2010

The end of the year represents a time when we should all start to come into the busier time of our business.

The last half of the year is traditionally when companies are upgrading their accounting systems or thinking of starting projects that are intended to improve their reporting.

Now is the  time when you should review the rates you’re charging to clients and consider changes – in advance of the busier and hopefully more billable year end. Since all of our costs tend to rise from year to year – it is only fair that your rates should rise as well.

With that in mind, I have several suggestions about billing that have worked exceptionally well for me (aka clients don’t complain or question).

Implement these today and I’d be surprised if you could not start increasing your bottom line $20,000 or more next year.  I’ve implemented these tips myself each of the last several years. I don’t recommend you make a big deal out of it or spend days writing an apologetic letter about how the economy sucks and you’re “forced” to make a “small” adjustment to rates.

Just “man or woman up” and get in there and adjust your billing practices. In this economy there’s no room for bashful billers. Here’s my four tips that will work for you – because they’ve worked for me!

Read the full post at  thelifestyleconsultant.wordpress.com

 

Filed under  //  billing   consultant   ERP   fees   lifestyle consultant   maintenance   mas200   mas90   sage   schulz consulting   support plans   tips   wayne schulz  
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Posted

NetSuite claims using their SaaS online accounting suite saves an average of $10,000 annual electricity

By switching to NetSuite, you’ll help the environment and save money. In fact, a recent impact study by Greenspace showed that NetSuite customers reduce their annual electricity bills by an average of $10,000.

Anyone beside me ready to request a copy of that study? How on earth does one save ON AVERAGE $10,000 annual electricity by switching to a hosted online accounting application??!!

Some NetSuite Pricing:

---NetSuite license pricing starts at $299 or $499 per month plus $79 or $99 per User

---Advanced Inventory module can be added on to your NetSuite account for $299 per month

---Advanced Financials module can be added on to your NetSuite account for $299 per month

---Advanced Billing module can be added on to your NetSuite account for $399 per month

---Incentive Compensation / Commission module can be added on to your NetSuite account for $299 per month

---Advanced Project Accounting module can be added on to your NetSuite account for $399 per month

---Add the SiteBuilder module to NetSuite for $299 per month (fully customizable Web Design, SEO Optimization, Multi-Currency shopping, Shopping Comparison feeds to Google Base, Shopping.com, Shopzilla, Nextag and more ....)

---Add Advanced Analytics to NetSuite for $299 per month to take advantage of full circle Marketing Campaigns with outbound email promotions tied to Web Store Analytics and ROI per campaign

Source:
http://www.horizonassociates.net/Product-Datasheets

Filed under  //  Accounting Software   cloud computing   ERP   greenspace   hosted applications   microsoft   netsuite   sage   sap  
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Hey MAS90 consultants - social media is a fad - part deux

Over the years I've heard that my social media marketing model doesn't work. That I'll never be able to vacation and supporting all those client is impossible without a receptionist, account manager, salesperson and a hefty (if ineffective) traditional marketing budget.
 
Curiously a number of those Sage VARS who told me how stupid my business model was are no longer in business. They've merged, consolidated or just left the business altogether.
 
And while the label "social media" is a bit faddish -- I'm still convinced that non-traditional marketing that keeps you in constant touch with your prospects and clients is THE way to go.
 
For those Sage VARS/Consultants who haven't figured this out - keep on using those tired tactics and ridiculing those that you've yet to try. Makes life easier for the rest of us.
 
 
 
Wayne Schulz
http://www.s-consult.com
cell - 860-516-8990

Filed under  //  Accounting Software   connecticut   ct mas90   ERP   mas200   mas90   sage   schulz consulting   social media  
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