[comp.misc] Empress pricing policy

dave@lsuc.uucp (David Sherman) (09/29/88)

I'm a little surprised at the pricing policy of Empress Software
Inc. (formerly Rhodnius) for their Empress (formerly Mistress)
database software.  I'd like to know whether others agree with me.

We obtained a license to Mistress version 1.13 in 1985.  It runs
on this machine, a Perkin-Elmer 3220, and cost about $4,500 at
the time.  We explicitly decided not to take maintenance at $1,300
per year, since we have a fair bit of in-house expertise.  The
version we have has a number of bugs, but we've been able to live
with them and work around them.

The database is used by staff for student records.  All of the
staff will shortly be moving to an AT&T 3B2/400, to reduce the
load on this system.  Thus, we need to move the database as well.
Since no database applications will remain on the P-E, I was
hoping to transfer our license to the 3B2 at some reasonable cost.

Empress will only transfer the license if we pay for three years
of RETROACTIVE maintenance -- pay for maintenance we never received.
I understand that maintenance and support includes bug fixes and
upgrades, and I'd be willing to pay a portion of this charge to
represent the upgrades, but to suggest we pay for maintenance we
never received seems ludicrous.  The only alternative Empress offers
is a completely new license for the 3B2.  Either way it will cost
us about $5,000.

Anyone care to comment on this policy?
(Yes, I'm going to take a hard look at some other packages now.)

David Sherman
The Law Society of Upper Canada
Toronto
(416) 947-3466
-- 
{ uunet!attcan  att  pyramid!utai  utzoo } !lsuc!dave

evan@telly.UUCP (Evan Leibovitch) (09/30/88)

In article <1988Sep28.150224.26393@lsuc.uucp>, dave@lsuc.uucp (David Sherman) writes:
> I'm a little surprised at the pricing policy of Empress Software
> Inc. (formerly Rhodnius) for their Empress (formerly Mistress)
> database software.  I'd like to know whether others agree with me.
> 
> We obtained a license to Mistress version 1.13 in 1985.  It runs
> on this machine, a Perkin-Elmer 3220, and cost about $4,500 at
> the time.
>[...]
> Since no database applications will remain on the P-E, I was
> hoping to transfer our license to the 3B2 at some reasonable cost.
>[...]
> Empress will only transfer the license if we pay for three years
> of RETROACTIVE maintenance -- pay for maintenance we never received.

I didn't run into that problem - when I wanted to transfer a Mistress
license from my Convergent Megaframe to a 386 Xenix system, they said
there'd only be an administrative fee. They said nothing about retroactive
support.

I never found out for certain what they would have charged, because I
didn't take them up on their offer. Frankly, I have my own personal
boycott of Empress going, and I refuse to recommend it, because of
the company's marketing policies. Here is the worst one of many:

This Canadian company refuses to sell its products or support
to other Canadian companies in Canadian currency. Every time I have been
quoted a price for anything from Rhodnius, it's in US dollars - I have to
worry about the exchange myself. As recently as a few months ago, I was told
that the company neither had nor planned to produce a Canadian currency price
list. This from a firm based in Toronto.

I'm sure Americans would be more than a little irate at a US company which
forces them to pay for products in yen. This policy is nothing short of
odious, and I ask my Canadian associates and clients to show their
displeasure with their chequebooks. Buy something else.
-- 
 Evan Leibovitch, SA of System Telly, located in beautiful Brampton, Ontario
evan@telly.UUCP (PENDING: evan@telly.on.ca) / {uunet!attcan,utzoo}!telly!evan
                           Don't worry - Be happy.

zgel05@apctrc.UUCP (George E. Lehmann) (10/01/88)

In article <1988Sep28.150224.26393@lsuc.uucp> dave@lsuc.uucp (David Sherman) writes:
>Empress will only transfer the license if we pay for three years
>of RETROACTIVE maintenance -- pay for maintenance we never received.
>I understand that maintenance and support includes bug fixes and
>upgrades, and I'd be willing to pay a portion of this charge to
>represent the upgrades, but to suggest we pay for maintenance we
>never received seems ludicrous.  The only alternative Empress offers
>is a completely new license for the 3B2.  Either way it will cost
>us about $5,000.

In my other life as a software publisher, we have a similar policy, although
the pricing ratios are substantially different.  We sell a $2,000 package
with annual support/upgrade fees of $149.  Since the program is still
evolving, new updates do far more than fix bugs, and we count the updates as
the major reason for the annual fee.  Therefore, to keep someone from going 'on
the sly' and dropping support for a couple of years and then coming back to
get the latest version for one year's price, we require the same 'retroactive
continuity'.  

On the other hand, I do see your point, and you might suggest to them (if you
haven't already) that you would be willing to meet on some common ground for
the express purpose of obtaining a new license and new binaries (and sources?).
You might consider throwing in a promise to never bother them for support, if
that is your intention, or for only 30 days support, or whatever...

You might also mention (threaten) that if you are going to pay the equivalent
of a new package, that you might just look to other vendors out of spite.
Be sure to climb as high in their company as you can before you let this one
loose.
-- 
George Lehmann,  ...!uunet!apctrc!zgel05
Amoco Production Co., PO BOX 3385, Tulsa, Ok  74102  ph:918-660-4066
Standard Disclaimer: Contents are my responsibility, not AMOCO's.

brad@looking.UUCP (Brad Templeton) (10/03/88)

Don't be too surprised at their refusal to set a Canadian price list.
(Although I am surprised if they would not accept the equivalent amount
in Canadian dollars when you buy.)

Most of my sales are in the US.  I decide the price for my product based
on what I think is best for that market.  I then set by Canadian price to
be similar.

Over the last few years the exchange rate has changed a great deal.  But
I want the U.S. price to stay the same because that's how I priced my
product.  So the domestic price must fluctuate.  And who wants to keep
changing prices, especially on official lists?  Much simplier to say the
price is US$X.  It makes it easier for the customer to understand why
it's fluctuating.

Don't forget also that even if 15% of sales come from Canada, almost
all advertising expenses are in $US.  Generally you advertise into U.S.
magazines that are read by Canadians.  Some advertising will be done
in Canadian magazines for certain products, but there's not a lot of that.
-- 
Brad Templeton, Looking Glass Software Ltd.  --  Waterloo, Ontario 519/884-7473

sl@van-bc.UUCP (pri=-10 Stuart Lynne) (10/04/88)

In article <366@telly.UUCP> evan@telly.UUCP (Evan Leibovitch) writes:
>In article <1988Sep28.150224.26393@lsuc.uucp>, dave@lsuc.uucp (David Sherman) writes:

>This Canadian company refuses to sell its products or support
>to other Canadian companies in Canadian currency. Every time I have been
>quoted a price for anything from Rhodnius, it's in US dollars - I have to
>worry about the exchange myself. As recently as a few months ago, I was told
>that the company neither had nor planned to produce a Canadian currency price
>list. This from a firm based in Toronto.
>
>I'm sure Americans would be more than a little irate at a US company which
>forces them to pay for products in yen. This policy is nothing short of
>odious, and I ask my Canadian associates and clients to show their
>displeasure with their chequebooks. Buy something else.

When I ran a company (NCI) selling p-System software for IBM PC's out of 
Vancouver approxiametly 92% of our business was from the US. About 4% was
from international sales other than the US. The balance of about 4% was
Canadian.

We did *everything* in US dollars. Including tracking sales figures, costing
etc. 

The sales people would always quote US founds unless they knew that it was a
Canadian customer. Then they would convert using current rates to Canadian.

Believe me when you are running mail/phone order software sales out of
Canada this simplifies things. You cater to your target market. Just
because a company is based in Toronto doesn't mean that is where they plan
on making their sales. Lets face it the old adage about California being a
bigger market than Canada is inescapable. You should applaud this firm's
initiative for seeking out new markets and bringing foreign currency into
the country.

-- 
Stuart.Lynne@wimsey.bc.ca {ubc-cs,uunet}!van-bc!sl     Vancouver,BC,604-937-7532

jim@hcr.UUCP (Jim Sullivan) (10/06/88)

In article <366@telly.UUCP> evan@telly.UUCP writes:
>
>This Canadian company refuses to sell its products or support
>to other Canadian companies in Canadian currency. Every time I have been
>quoted a price for anything from Rhodnius, it's in US dollars - I have to
>worry about the exchange myself. As recently as a few months ago, I was told
>that the company neither had nor planned to produce a Canadian currency price
>list. This from a firm based in Toronto.
>
>I'm sure Americans would be more than a little irate at a US company which
>forces them to pay for products in yen. This policy is nothing short of
>odious, and I ask my Canadian associates and clients to show their
>displeasure with their chequebooks. Buy something else.
>-- 
> Evan Leibovitch, SA of System Telly, located in beautiful Brampton, Ontario
>evan@telly.UUCP (PENDING: evan@telly.on.ca) / {uunet!attcan,utzoo}!telly!evan
>                           Don't worry - Be happy.

But like most Canadian Software companies, a majority of their sales are outside
of Canada.  The problems maintaining multiple price lists are just to much
of a headache.  Anyways, you could get a price break is you just played the
market right, only pay them when the Canadian dollar is high relative to the
american dollar!

I can't agree with the policy of "buy something else".  That just sends
Canadian dollars outside the country.  The price of something is always
relative, and it will cost you the same if you pay in Canadian dollars,
American dollars, Yen, or little rocks with holes in them! :-)

Jim Sullivan

"These are my opinions, so keep your hands off them"

evan@telly.UUCP (Evan Leibovitch) (10/08/88)

In article <4053@hcr.UUCP>, jim@hcr.UUCP (Jim Sullivan) writes:
>In article <366@telly.UUCP> evan@telly.UUCP writes:
>>
>>This Canadian company refuses to sell its products or support
>>to other Canadian companies in Canadian currency.
>>
>>I'm sure Americans would be more than a little irate at a US company which
>>forces them to pay for products in yen. This policy is nothing short of
>>odious, and I ask my Canadian associates and clients to show their
>>displeasure with their chequebooks. Buy something else.
>
>But like most Canadian Software companies, a majority of their sales are outside
>of Canada.  The problems maintaining multiple price lists are just to much
>of a headache.

They MAKE a database system, and keeping track of pricing data is too much
of a headache? Do these people know how to use their own product?

The Canadian marketplace, obviously, is not too much of a headache for U.S.
companies selling their wares here. They all have firm Canadian pricing.

>Anyways, you could get a price break is you just played the
>market right, only pay them when the Canadian dollar is high relative to the
>american dollar!

That's not acceptable if I want to establish a firm quotation for a client.

>I can't agree with the policy of "buy something else".  That just sends
>Canadian dollars outside the country.

I cannot support a Canadian company which refuses to be competitive or
care about the needs of its customers, just because it is Canadian. If
Rhodnius is selling its product to the British in US dollars, it will similarly
lose out to the competitor willing to quote a price in pounds.

>The price of something is always
>relative, and it will cost you the same if you pay in Canadian dollars,
>American dollars, Yen, or little rocks with holes in them! :-)

Relative to what? Without Rhodnius changing its pricing one cent, I can be
almost 100% certain that the price I would have to pay tomorrow for its product
is different from today's price. How much it changes is determined by a factor
(the exchange rate) over which neither the seller nor the buyer have control.

All Rhodnius' non-marketing expenses are paid in Canadian dollars, its
dividends (if they exist) are paid in Canadian dollars, and it files
to Revenue Canada, not the IRS. The company must certainly be calculating
its basic selling prices in Canadian dollars, THEN converting it.

It is nothing but marketing laziness that keeps the company from publishing
Canadian prices. I am far angrier at a Canadian company which treats its
home market as a "headache", than I am at a foreign company which chooses
to bypass Canada.

If Informix and Oracle believe the Canadian marketplace is worthy of
Canadian sales offices and STABLE pricing in Canadian currency, then
they are showing more respect for the Canadian DBMS consumer than Rhodnius.

In my eyes, though, this Canadian pricing (or lack thereof) is just
symptomatic of the generally brain-damaged marketing strategy at
Rhodnius. There are other examples of the miserable way in which they
have peddled Empress. Like the way they (don't) work with VARs.

Rhodnius has a good product, and they'd be right up there in
sales with Informix and Oracle if they had their act together.

>Jim Sullivan
-- 
 Evan Leibovitch, SA of System Telly, located in beautiful Brampton, Ontario
evan@telly.UUCP (PENDING: evan@telly.on.ca) / {uunet!attcan,utzoo}!telly!evan
                           Don't worry - Be happy.

woods@gpu.utcs.toronto.edu (Greg Woods) (10/09/88)

In article <4053@hcr.UUCP> jim@hcrvax.UUCP (Jim Sullivan) writes:
>In article <366@telly.UUCP> evan@telly.UUCP writes:
>>
>> [ Evan is irrate about not being able to buy a home-grown product
>> with local currency. ]
>
>But like most Canadian Software companies, a majority of their sales are outside
>of Canada.  The problems maintaining multiple price lists are just to much
>of a headache. [...]
>
>I can't agree with the policy of "buy something else".  That just sends
>Canadian dollars outside the country.  The price of something is always
>relative, and it will cost you the same if you pay in Canadian dollars,
>American dollars, Yen, or little rocks with holes in them! :-)

I don't completely agree that keeping multiple price lists is too much
of a headache.  It can be done, and quite easily in these days of
computerized accounting.  BTW, I certainly don't see any problem with
having lots of customers outside of the country.

I must say that any company that can't handle the currency exchange
(fairly) for the customer, especially a local one under these
circumstances, isn't being very curteous.  Companies that find
themselves in the position of dealing in multiple currencies need only
call the bank each morning to have an approximate exchange rate on hand
all of the time.

Another solution is to set one price, and accept either currency at this
same price.  I once worked for a company that did this successfully for
some time.  Other companies have less luck.  Unfortunately customers on
either one side or the other, or both, tend to think they are getting
ripped off.

In the end, I don't see why a Canadian company won't simply advertise
only in Canadian dollars.  Most American customers will be well aware of
their currency advantages.  I've _never_ heard of _any_ US company
advertising only in Canadian dollars, and can't even imagine it ever
happening, free trade or not :-).
-- 
						Greg Woods.

UUCP: utgpu!woods, utgpu!{ontmoh, ontmoh!ixpierre}!woods, tmsoft!ixpierre!woods
VOICE: (416) 443-1734 [h]		LOCATION: Toronto, Ontario, Canada

allbery@ncoast.UUCP (Brandon S. Allbery) (10/17/88)

As quoted from <374@telly.UUCP> by evan@telly.UUCP (Evan Leibovitch):
+---------------
| They MAKE a database system, and keeping track of pricing data is too much
| of a headache? Do these people know how to use their own product?
+---------------

I once heard that Ashton-Tate's internal database is written in -=> Unify.
Companies which don't use their own products aren't a very good argument for
anyone else using their products....

++Brandon
-- 
Brandon S. Allbery, comp.sources.misc moderator and one admin of ncoast PA UN*X
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