Dec 1, 2009

Cutting the Cost of Business Automation

Cutting the Cost of Business Automation and Increasing the Value By Bridging the Front and Back Offices

For a small business, the most important business automation has to be connecting the Front Office (GoldMine) to the Back Office (Accounting Software). In our example we will use QuickBooks. Consider the contacts and related information which would not have to be re-keyed with the programs linked. Well, at least for our example, the solution exists. It's called GoldMine Plus Accounting from Front Range.

If you didn't know about it from past promotional activities, you'd probably have a hard time finding information about it. Don't believe me? Try this test: Go to the FrontRange site, and find GoldMine Plus Accounting. If you don't already know where it is on the website, you won’t find it. Yet the concept embodied in the software is very appealing! Why isn't it marketed more?

One of the possible drawbacks to the Plus Accounting solution is its cost - or perhaps more precisely, the perceived value. We have to keep in mind that most clients cling to cost, as an important purchasing criterion. So, it must be addressed. What would an installation cost in a 5 seat or less environment? Here are some figures we have collected:

Cost Components                         Pro             Premium      Enterprise

Additional QuickBooks Seat        $187             $399          $600
Additional GoldMine Seat            $595            $695          $995
GM Seat Annual Fee                   $129              $139          $ ?
GM Plus Accounting Seat            $399             $399          $399
GM Plus Acctg Annual Fee         $109             $109           $109
Actual Cost                                   $1419           $1741         $2103

The additional seats are actually for GM Plus Accounting Software, and required for dedicated use by the software. We have assumed in the figures above that the total number of seats, of QuickBooks does not exceed 5.

If the client breaks the 5 seat QuickBooks barrier the costs increase dramatically, since seats of QuickBooks are sold in 5 seat blocks. The client would be required to upgrade to QB Enterprise Edition once the 5 seat barrier is broken. So, the cost progression would be $3000 for 5 seats, $5000 for 10 seats, in addition to the figures above. If the client can be convinced that they are saving more than that amount by using GoldMine Plus Accounting, or that they can increase sales, or . . . then they will buy. But the challenge is that clients seem to see it just as additional cost.

The value of ANY business automation must be more than its perceived cost, and that cost is not only seat cost, but fully installed cost. Otherwise, clients will resist automation. It is the VAR's and OEM's responsibility to see that there is sufficient value in the eyes of the purchasers.

What If The Accounting Bridge Were Free?

If enough value (for the client) is contained in a program that additionally bridges QuickBooks and GoldMine, then the bridge is free. There is such a program, but we will let you (and ultimately, the client) decide if the value is high enough to call the bridge free. The program:

• Manages as many as 13 different types of marketing campaigns
• Tracks marketing campaigns all the way to the order
• Has a sophisticated pricing engine
• Generates one page quotes, and complex proposals in a few clicks
• Converts quotes/proposals to orders with a few mouse-clicks
• Can convert orders to projects, and manage the projects
• Generates service/work order tickets, and compiles billable hours
• Identifies employees, vendors, or contractors for certain types of work

Oh, and it also connects GoldMine CE to QuickBooks, or MAS 90/200, bringing viewer-only information to users desktops, while passing orders and service work to the accounting side.

Is it possible that you, or a client, might think this would be worth $795, and consider the bridge free?

If you did find the features above interesting, then go to www.bestfitbusinessmgr.com for more information.

Name: Cutting the Cost of Business Automation
Author:  David Brydson & Tom Daly