Edition Upgrade Pricing is Excessive

[bos]

Why does it cost more for an Edition Upgrade versus buying a higher simultaneous call edition?

For example, the difference between the initial cost of a Professional vs. Enterprise editions is $700 USD ($1,295 vs. $1,995). However, to purchase an Edition Upgrade from Pro to Ent (i.e. 16 to 32 sim. calls) the cost is $1,348 USD.

Why does it cost $648 more to upgrade the edition? That is a 90%+ price increase!

I'm in the software business and I don't know of any company that penalizes customers for buying more licenses. And I can't think of any reason (technical or business) that would cause an Edition Upgrade to be more expensive, except greed (i.e. we have the customer hooked so let's charge them a little extra because the cost of switching from us now will be too difficult).

A 90%+ price increase is excessive and I don't think you should treat current customers in this way.

I respectfully ask that 3cx re-evaluate this aspect of your license costs. You have a great product, and an otherwise reasonable license scheme. Please don't make it hard for customers like me to upgrade as our business grows.

 

[mylove4life]

I don't think the cost is to bad, go price a hardware PBX and see what you come up with...

 

[eagle2]

I don't think the cost is to bad, go price a hardware PBX and see what you come up with...

This is not quite through - many hardware PBXs are cheaper already, for example Avaya (both IP office and Communication Manager) and license upgrades are not penalizing the customer.

A 3CX configuration is comparable in price to middle-priced hardware system.

 

[mylove4life]

I think 3cx has a lot more features and a hell of alot easier to setup..

I don't think the cost is to bad, go price a hardware PBX and see what you come up with...

This is not quite through - many hardware PBXs are cheaper already, for example Avaya (both IP office and Communication Manager) and license upgrades are not penalizing the customer.

A 3CX configuration is comparable in price to middle-priced hardware system.

 

[Javier Casares]

When we bought our license moving to a higher version wasn't much different than the price difference when you purchased it IIRC, but I see this doesn't hold true now. It's almost better to buy the new license and have the old one for other uses.

Never saw that treatment to current customers in the industry. O_O

 

[tsteffens]

Now that I look at this, I can completely agree this is rather excessive. I would think they would make it at least the same price because when a customer upgrades and they purchase the software upgrade assurance yearly the income will be greater.

WHY PENALIZE SOMEONE FOR UPGRADING?????

 

[bos]

I don't think the cost is to bad, go price a hardware PBX and see what you come up with...

Yes, 3cx is easy to implement, a good price, and as I said in my original post, a great product. However, there is no technical or business reason to charge one price for a x-user license, and yet charge a higher price to upgrade to the same x-user license. The only reason I can deduce is greed-because you have the customer 'locked in' so why not take advantage of them?

I'm all for making a profit, but charging different prices for the same exact thing is a bit hard to understand, particularly when the difference is nearly double the original cost. This isn't what I would expect from 3cx based on all the other positive aspects of the product, pricing, and company. I hope they will re-evaluate it.

 

[StefanW]

But in other words you save 600$, a HW PBX must be dump at one point and all the money is lost plus configuration.
Also you have to see that the UI ist more pricy on a 32SC then on a 16SC and you get a new one for your system (150$ pA).
So we give a way around 35%, and this in my opinion very generous! And as you said before it was only 700$ between them both version, why didn't you/they bought it in the first place when you thing the company is growing in the future?

One thing i will try to find out at the moment.
I am not sure if the $1,348 USD is the worst case price while upgrading or if your running UI is been reduced from the price...
If i know this i let you know...

 

[tsteffens]

But in other words you save 600$, a HW PBX must be dump at one point and all the money is lost plus configuration.

Except this may not hold true as I may still have to dump my hardware depending on the size of the jump I make.

Also you have to see that the UI ist more pricy on a 32SC then on a 16SC and you get a new one for your system (150$ pA).

I'm not quite sure I understand how the UI is more pricy....isn't it the same console for 32 or 16?

 

[Javier Casares]

Most PBX have a licensing that allows increase in users while retaining the same hardware. The change is needed only when you make a big jump like from 100 to 10.000 users. On the other hand this is software, not hardware so your comments are not valid.

 

[thames]

I guess this means when one is planning on buying (or selling in) a new system, care must be taken to ensure that the first system sold in is the last one sold in? This is an interesting conversation for me as a new reseller partner, so reading on with interest to see how it progresses.

 

[AlexDBarrett]

I guess this means when one is planning on buying (or selling in) a new system, care must be taken to ensure that the first system sold in is the last one sold in? This is an interesting conversation for me as a new reseller partner, so reading on with interest to see how it progresses.

I, like thame, am a new reseller.
My first sale I made 100% sure the client understood that making the right choice of licence by identifying the cost difference between two SC versions and the cost implications of choosing the wrong product.
Yes the upgrades are high and disproportionate to full licences and should be used to sell the right licence from day 1.

I believe if you give the customer the information upfront and include your recommendations they can make an informed descision and hopefully make the correct choice. As a professional salesman you should accept the cost and service the client.

If they choose a product on price and then get it wrong it is for you to upgrade at any cost without a smirk.

 

[zyrk]

WOW! I have to say that I've never seen this before from any software developer.

So, if I'm understanding correctly, based on the public pricing information.

• A 16SC Pro Annual License is $879 and a 32SC Pro Annual License is $1,629. (Difference = $750)
• On the other hand, to upgrade from a 16SC Pro Annual License (which you already paid $879 for) to a 32SC Pro Annual License the cost is $2,286. So you would end up paying $3,165.
• First of all, why do you have to jump from 16SC to 32SC? Why can't you just add 4 more SCs? or even 8 more SCs?
• I don't see any options to downgrade. So If I bought the 32SC license but after a year would like to downgrade to 16SC license, then I'm stuck and have to continue over paying?

That doesn't sound like an honest business to me. A business should correctly price its value from the beginning and not penalize its customers because they made a mistake. Even Microsoft (which by the way is a multi-billion company) allows you to upgrade their licenses with the correct product for the correct price. It is a win-win situation.

The most successful businesses do all things right, have a good business model that benefits the business and the client, and focus on the customer experience through the complete journey together.

Just my 2 cents.

 

[Saqqara]

Nothing like responding to a 6 year old thread

 

[N_G]

No you are reading the price list wrongly. You are comparing the upgrade pricing of perpetual licenses with the annual license. Annual licenses can be upgraded at any point in time for the pro rate difference only. Upgrade pricing is only applicable to perpetual licenses.

I think you will find the pricing of 3CX extremely competitive compared to any other PBX.