Lower pricing/renewal structure: Feedback

[dbiggers]

We're doing a lot of work on simplifying our product and pricing structure, and the first aspect of that is rolling out now. I wanted to give forum users a heads up and gauge what you'd consider the pros and cons (I'm having a hard time finding "cons"... but I know you will...LOL.)

We've test-marketed this on the phones and it's been exceptionally successful. But, I always want direct feedback if forum opinions differ.

The first part of the new structure centers on the base level renewals, and on those who want to switch to a la mode from competitors. We've essentially removed all barriers to switching, and guaranteed renewals for existing and new users alike.

Under the new plan:

1. The existing Silver membership (support and updates) now includes TOTAL as part of the normal service, for the same $349 annual fee. There is no charge up front for software any longer. So, a user of competing software can switch for just the annual $349, and that's it. TOTAL is built in.

2. That $349 price is guaranteed for new and renewal users for 10 years at a minimum. Prices will not rise on that package, so anyone knows they're not getting suckered into something that's $499 a year later on renewal. Our software plus Silver, or better (we add things all the time), will always be no more than $349. Guaranteed.

3. Maps, data, aerials, UAD delivery, flood and census data, mobile, and so on are included with no per-use charges (always unlimited use). We were considering charging for mobile (it's expensive), but decided to make it an official part of the core functionality at no charge.

4. We're evaluating doing the same for flood maps, but haven't been able to make the numbers work yet (we pay a LOT for flood maps). If unlimited flood maps were free, is this something that would get others to switch, and would it encourage renewals?

5. Other things we're looking at are free CE classes, even on non-tech topics. In other words, we'd run a traditional national appraisal CE school, with both local and online classes, and include at least the minimum CE annual quantity per person in the membership at no charge. Our goal of course is to be the biggest CE provider in the country, but free. Thoughts? Valuable or not? A good reason to renew or switch?

We're looking at similar restructuring of Gold, Platinum, and Elite, with possibly substantial price cuts at the top end. But that's a different topic.

Vault, Exact, XSites, etc are undergoing their own pricing review, but that's a different thread too. Stick to this if you don't mind.

I should note that even if someone switches software away from us and they cancel or let the membership expire, then TOTAL will still run to edit, print, and look up reports and workfiles. Your files would not be "held hostage".

So, what are your thoughts on $349 for Silver, with TOTAL always included with no software purchase cost, and a guarantee of no price increase for 10 years at a minimum? And what about the other possible inclusions in basic service? I'd like to hear from customers and non-customers. And this won't be a debate -- I'll just watch the pricing responses.

Thanks in advance.

 

[DonRico]

Dave --

That setup would work -- it seems very similar to the current annual fee for Silver.

Will you still be supporting the Aurora version for the foreseeable future ??

Getting the Flood Maps directly from your server would be helpful. Right now it takes about 5 extra steps outside of your software and then an additional step to scan it in.
Not every appraisal needs a Flood Map. Perhaps you could offer the first 50 Flood Maps free.

What is the most cost-efficient package that gets us on the Mercury Network ?? I am seeing a steady increase in those Lenders who want to use Mercury......am I on the Network with the Silver Membership ??

 

[MoTim]

Dave,

This all sounds good. I agree with DonRico that Flood Maps are not needed for every report and the first 50 in my case would be good. Mercury is important to, but not necessary. Until all the problems are resolved with the latest software, I'll be sticking with Aurora.

 

[dbiggers]

Dave --

That setup would work -- it seems very similar to the current annual fee for Silver.

Will you still be supporting the Aurora version for the foreseeable future ??

Getting the Flood Maps directly from your server would be helpful. Right now it takes about 5 extra steps outside of your software and then an additional step to scan it in.
Not every appraisal needs a Flood Map. Perhaps you could offer the first 50 Flood Maps free.

What is the most cost-efficient package that gets us on the Mercury Network ?? I am seeing a steady increase in those Lenders who want to use Mercury......am I on the Network with the Silver Membership ??

We already have fully automated flood maps. If you're spending extra time doing it manually, just get one of our flood contracts.

Offering 50 maps free is great. If it were me, I'd insert a flood map in every report if it was automatic.

Mercury Network is also free. You don't have to buy anything. Mercury Desktop is free as well. You do have to pay for certain plugins for third parties, but lenders or AMCs on Mercury with whom you do business do not require them. You only pay per transaction. You do not pay to get "on" Mercury Network.

 

[dbiggers]

BTW, the lack of comment implies that offering free CE doesn't matter. Is that accurate?

 

[Brian W Street]

I will give a thumbs up for the CE, I would even pay for them. After so many years of taking online classes the content seams stale to me like it is the same old topics with very limited selections. I do not have time to travel for the classes and I really do prefer to take them online. I purchase the Elite package and have for years now but I must admit that I have thought about downgrading as I feel the added benefits do not justify the additional costs anymore. I only call tech support once or twice a year, I have only received 1 order request through the Mercury Network in many years and I have no clients that use my web site. I would welcome additional or new benefits and pricing structure to the Elite level.

 

[MEL]

I like the idea of the 10 year price guarantee and offering CE classes.

Most importantly I would really like to see several plugins for third parties (maybe 2 or 3 of our choice) included in the price of the silver membership.

 

[CigarDad]

As an ACI user looking at my $545 renewal bill that does not include a web site, maps, aerials, flood, census, etc, why would anyone stay with ACI?

My total renewal with Mapping (Location maps only) is $545 + $99 = $644

Switching to a la mode would represent a 45% savings to me.

 

[dbiggers]

I will give a thumbs up for the CE, I would even pay for them. After so many years of taking online classes the content seams stale to me like it is the same old topics with very limited selections. I do not have time to travel for the classes and I really do prefer to take them online. I purchase the Elite package and have for years now but I must admit that I have thought about downgrading as I feel the added benefits do not justify the additional costs anymore. I only call tech support once or twice a year, I have only received 1 order request through the Mercury Network in many years and I have no clients that use my web site. I would welcome additional or new benefits and pricing structure to the Elite level.

Thanks Brian. I'm having a product coach contact you to see what's up with your Mercury profile and your website. In the last 12 months we've had over 400,000 order referrals go to XSites, and of course there are tens of thousands of Mercury orders a day -- so there is traffic and traction, and if you're not getting any then there's absolutely something that can be done to get you part of it.

Note though that Mercury is not an "ad hoc" ordering system; it's not a "directory". If you aren't on a Mercury-based lender's appraisal panel, they won't send you orders generally speaking (unless they have a hole in their panel for a particular assignment). The coach will look at your profile and see what may be needed to get you added to some panels.

As for CE, thanks for the feedback and we'll keep heading that direction. We already train thousands of appraisers a year in person on the road, and we conduct hundreds of thousands of webinar-seats a year. I suspect that makes us one of the largest education providers already; we just need to turn up the heat and make it official. You'll see us on the road a lot more next year, so we'll be adding days for traditional appraisal CE while we're in a given city too, and ramping up much more engaging online CE than what you've been seeing. I couldn't agree more on the low quality and repetitious nature of most online CE. We see a superb opportunity to dominate the private (non-organizational) CE space.

 

[Randolph Kinney]

BTW, the lack of comment implies that offering free CE doesn't matter. Is that accurate?

That depends on how local the classes are. Online classes are commonly available by many vendors, for a price. I like the video tutorials which I say puts a la mode ahead of others. So I for one would consider online CE if it were free. I prefer live local CE where I can interact with the instructor and peers.