This is an email one of our reps sent to a customer who was upgrading to ACT subscription.
We though it was so thorough and clear, we decided to reprint it verbatim.
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Hi <customer name>
To be clear, Act is no longer offering a model where you buy it and own the software – the $342 option is essentially a one year subscription + a perpetual license option ($171 for the year + $171 for the option) such that when your subscription is up, you retain a perpetual license for the then-current version of Act. You’re not really buying a non-subscription Act, you’d be buying a year subscription + permanent license, and that approach means every upgrade you’re paying for that again.
Right now, since you are on a supported version of Act, you are entitled to “lock in” a subscription at upgrade pricing. This is $190/year/user less your quantity discount = $171/year. If you let your subscription lapse and then want to upgrade again later, your pricing will then be the current pricing, which right now for your quantity is $225/year + $225 for the perpetual option.
So if you don’t go on an annual subscription and renew yearly, not only does your price go up next upgrade, but you also will have to buy the “perpetual” license every time – so you’re paying $342 this year and $450 on upgrade years.
It’s hard to do an apples-to-apples price comparison, but here goes, and I will actually try to bias this against subscription since I am generally pro-subscription model. Also note that I do not know what the price of Act will be for new subscriptions moving forwards, so the $450’s are based on current pricing.
- Scenario 1 – Upgrade Now, Upgrade Every Two Years Cost Now: $342 Cost through 6 years: $1242 ($342 now, $450 every two years) You get tech support and the latest version of Act in years 1, 3, and 5 only
- Scenario 2 – Upgrade Now, Upgrade Every Three Years Cost Now: $342 Cost through 6 years: $792 ($342 now, $450 every three years) You get tech support and the latest version of Act in years 1 and 4 only
- Scenario 3: Annual Subscription Cost Now: $171 Cost through 6 years: $1026 Tech support included through your subscription and always entitled to current version
I picked six years to make subscription every year as ugly as possible – so it looks cheaper to upgrade every three years. But, the following year, you’re looking at $450 again in the two or three year upgrade cycle, vs. $171 in the upgrade-every-year approach. Try the math for yourself, depending on the number of years you look at, $171/year can work out to be the cheapest option.
I think even not considering the Quote Tool, annual subscription is the way to go, but then with the Quote Tool, it’s even more important that we have access to Act fixes and the same version as the other dealers – Canada and Midwest are both on Business Care and very likely to go the annual route as well.
I hope that helps, and also hope that whatever you decide, you’ll make the upgrade through us?
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I could not have said it better myself!
Kq\