On Jul 3, 2:16 am, "Gamiz Ribelles, Sergi \(Regsa\)"
<
sga...@regsa.cat> wrote:
> It's impossible to find any reference to MI 10.0 license price in Pitney Bowes web site. Has anybody idea about prices of MI10?
Yes, that's done on purpose for a several reaons. First, different
people/organizations have different needs and budgets, and are all
wllling to pay different prices to get what they need. So the list
price is jacked up to give the seller the most wiggle room to
negotiate and the price is not published because it's embarassing. But
if you make contact with a vendor and the potential sale is large, or
the vendor wants to clear some inventory, or you're an oil & gas
company in Redlands, CA and the vendor wants you to replace your
ArcGIS with MapInfo, then the price can easily be negotiated down. For
an interesting read on the voodoo behind software pricing and
marketing, read Joel Spolsky's article "Camels and Rubber Diuckies" at
http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html
The other reason the prices are held tight is that the list prices are
inflated beyond all reason and they don't want you to reject the
product out of hand when you do a Internet search based on price and
the wrong assumption that all the products are otherwise equal. Also,
they want to get you to actually contact a vendor looking for a price
quote, and that provides an opportunity for the vendor to assess your
needs and the plumb the depth of your pockets and connect you to the
best solution(s) available. MapInfo for example, sells a wide range of
mapping and business information products now, and the average person
may not know exactly what they need. That's where the vendor acts as a
consultant, and really, that's worth something. They're not all box-
pushing sales droids.
A third reason not to publish prices is to provide incentive for
vendors to actively sell the product. Depending on how much a vendor
sells, they can get upwards of 50-60% of the retail price as their
margin. This way a software manufacturer can leverage the power of a
network of already established vendors --who are often also experts in
a particular field related to the software, so they are in a position
to give customers good advice-- to sell more copies over a wider
region than the software company could ever sell by themselves. Paying
vendors a decent commission keeps them focused on selling, and it's
cheaper than trying to field your own team, at least in the beginning.
So you don't publish prices to give those vendors flexibility to
charge less or considerasbly less in certain cases to make the sale
while squeezing out the competition.
But you shouldn't go on just price alone, or assume that the total
cost is in the intial sale if your mapping needs are long-term and
open-ended. Most local resellers realize that the real profit (for
both buyer and seller) is usually not in the inital sale but in the
ongoing relationship with a customer. A new customer often needs help
and advice as they learn to use the software, and as they progress up
the learning curve successfully with a vendor's help, when they need
something or are ready for something (like training or customized
development), who do you think they're going to call?
That's the ideal model. In the real world, most resellers don't ever
see margins of 50% (it's more like 5 to 30%). Competiton among vedors
is active but to keep it form being chaotic, vendors are restricted to
regional boundaires too. This artificial limitation is imposed to keep
vendors whose costs are lower from decimating develpoing dealer
networks outside the USA. You pay more for US-made software outside
North America becuase generally it costs more to develop. For example
the Elbonian version of MapInfo has to be ruggedized against mud and
shipping through that region via camel train is costly, plus it's
pretty hard to get a translation from English to Elbonian.
But if you must get the lowest price, use the Internet to find a
collection of similar-sized resellers in your sales territory, then
wait until the week before the end of the next fiscal quarter, and be
prepared to negotiate with al of these vendors (i.e. have some reasons
why the vendor would want you as a customer after the inital sale).
And do keep in mind that an independent vendor brings more to the deal
than just a box of software with an inflated price and mandatory add-
on services you don't need. If they also have any expertise in your
field of business, then consider what their custom tailored help is
worth in terms of consultant's fees and subtract that off the price.
I'd be surprised if you really had to pay the full list price of $2140
for a new copy of MapInfo with MATS.
- Bill Thoen