I received a similar phone call. We were going to do 2 years and then backed out when 
they wanted the money upfront for the whole period "to generate cashflow" 
which sent up all kinds of red flags. I am fairly sure it was the same vendor who called 
you. As it is, we are facing $4 million in migration costs and having to pay two years
of support "in advance" was more than we could justify. IF they had allowed us to lock
in at the price they quoted us, that would have worked, but the sales rep laughed at me
and that was that. 

Cynthia Bridges-Fowler
North American Salt Company
a division of Compass Minerals Group
[log in to unmask]
http://www.compassminerals.com/    

>>> "Simpkins, Terry" <[log in to unmask]> 11/06/02 02:39PM >>>
Well I just a phone call from one of the database tool providers about =
support.
It seems they are offering a chance for me to pay my maintenance 3 years =
ahead, and thereby
"lock in" my annual costs, and "avoid the 15% annual increase" in =
support costs.

Now I will leave this supplier nameless, but I tried to explain to them:
- Why would you be raising support costs 15% a year, when there is no =
significant development
work being done on your product?  He said "oh no we are making lots of =
enhancements to the product".
But when pressed could describe any.
- Inflation is only a couple of points a year, so you can't justify =
these sorts of increases on that logic.
- The product is very stable and you aren't inundated with support =
calls.
- Pursuing a path that includes annual 15% increases to support costs =
will cause phones to ring at other
suppliers.=20
I also tried to explain that this sort of price increase would be viewed =
as "raping and pillaging" and be=20
viewed very negatively in the marketplace.  I strongly suggested they =
"rethink" this strategy.

Was I the only customer to be graced with this sort of call?? If so, =
maybe I'll buy a lottery ticket today.

*****************************
Terry W. Simpkins
Applications Director
Measurement Specialties
757-766-4278
[log in to unmask] 
*****************************

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