Empower Your Business with Sales Contact Management Software in Vendor Negotiations

How to create outlook signature

on negotiating and or renegotiating the best deal with your CRM vendor and what I'd like to look at first before we kind of talk money and dollars and cents is some of the existing implementation options that are available for um your organizations as you choose to work with CRM vendors because there will be different ways of negotiating and pricing based on what type of implement ation option you are using so just a a quick kind of introduction before we get into um dollars and sense regarding the negotiations so there's basically three options and it's it's two with one in the middle but I'll go through the the the two bookends one is on premise and one is on demand and then I'll talk about the one in the middle that's increasingly called uh hosted but the on premis is the kind of the old way and and still very much the the the majority way of putting in CRM software although that's even changing I mean it's we we'll see in a minute why but on premises where you take the software you you actually buy it so you license the software as it says you then deploy it on your own machines meaning a server in your own company typically and you maintain it within your you know it shop or whatever you use for you know an IT organization and typically you purchase a license for each user so you have what's called named users sometimes you'll have you know concurrent users where there's a certain number of people can come in it doesn't make sense who they are but there's you know 10 or 20 users and then there's another ability to to negotiate an Enterprise license where anybody that is you know on a on a sheet of paper as a named user can come in either all at once or you know individually it depends on how you set up the organ the the um the the deal the license and then typically on the on premise side the vendor will charge anywhere between 15 and 25% for maintenance it's um to narrow that down it's typically 18 to 22 and the take it average is typically 20 although I like to go see it lower um that on premise option does give you the most flexibility for connecting the CRM system to other systems like your Erp or Web Solutions or any of your back office systems that are actually you know very important feeds into the CRM system or receivers of information from the serum system so by having basically the software on a box in your shop you control most easily most flexibly what to connect to and how to make those connections um but that also you know implies that there's going to be a resource commitment that your organization needs to make in terms of Staffing the CRM uh server or or it Department in such a way that you could make sure that the software is running ACC accurately is kept up to date is backed up the user you know newes are brought on and the data is kept clean and and the connections work etc etc so that's the on premise option the kind of summarize that that is typically a higher cost of Entry than the um other options going to talk about on demand or hosted in the sense that you have to buy the stuff upfront but it's definitely the lower long-term cost because once you've sunk the initial cost in the you know in the software and related you know Hardware Services you then amortize that over you know typically a 5year period um during the life of a of a CRM kind of deployment which which runs maybe five years so higher entry at the beginning but cons there's a crossover Point uh and it depends on number of users and prices paid and everything but there's a crossover point where it then becomes actually advantageous to go with the on premise option because over the long term it's the it's the lowest cost option but at the beginning it's a higher cost um as