At 09:41 11/18/98 -0700, Bruce Toback wrote:
>
>The number of users or the size of the machine is often a surrogate for
>the complexity of the product's use.
>
Often, but not always.  I have found no correlation between the size of the
machines our user's have and the use they make of our product - an EDI
translator and document manager.  One of our users with a 995 was for a
long while using our package to send invoices to two customers (they have
since added documents and trading partners).  Another user with a 947 was
using it to send and receive POs, PO change requests, responses to PO
change requests, order status inquiries, order status reports, invoices,
shipping documents (ASNs), store addresses, and product sales activity to
and from dozens of customers.  Tier-based pricing clearly does not make
sense in this context.

Usage-based pricing, based on, say, the number of trading partners or the
number of types of documents exchanged does make sense, and some EDI
vendors use this kind of pricing model.  We don't, however.


Tom Brandt                            Northtech Systems, Inc.
+1 734-769-5040                     3588 Plymouth Road, Suite 292
+1 734-769-5498 (FAX)            Ann Arbor, MI 48105