• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Corporate Pricing Model

  • Thread starter Thread starter easyethan
  • Start date Start date

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

E

easyethan

Guest
I work for a small sized public relations firm in NY City. We use a software program called Elite for our accounting system. Our contract with Elite is for a 70 Timekeeper Version of their software. We have 80 employees who we track time for but we enter it into a different software that just stores the information in Elite for billing purposes. Of the 80 employees, only 7 people actually have Elite installed on their computers. These people are in accounting. Elite is trying to make us pay an additional $10,000 plus $2,000 per year in maintenance for having 80 people in the Elite system instead of under 70 even though only 7 people use the software. They are basically pricing their software on the size of the company instead of the use of the software. Whether we have 10 employees or 100 employees, the software does not change and the service provided is always going to be to the 7 accounting personnel only. This is similar to Coke selling their soda to GM for $5.00 per can versus a small company like us for $.75 per can just because GM has more people and brings more money in. Is this a legal pricing practice from one corporation to another?
 



Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
Top