You have your app (or program or software, won't debate what to call it) and to make ends meet you need the "$43,000 for the software and pay licenses of about $500 per month to our vendor who we have to pay, "
So at 500 a month and they are currently paying 300 a month you see the problem.
My advice is to either "Cut out the middleman" of the 500 a month by a rewrite to drop your need for licenses or PIVOT and find a new program/app and get your software company going in a new direction.
Hello I'm new here and can't believe I didn't join sooner.
We are a software business and we created a software for dealers/brokers that is specific to a set of industries that have not had great software for a long time. Lots of businesses are using 30 year old software. This segment is old school but the owners kids are taking over their parents business and the kids (in their 30's and 40's) are all about the new technology and automation.
Our largest problem is this business segment is very very very slow and they profess that every time we talk. Our first sale in this space took 1 year to buy and they were 100% on board from day 1. Since they are salespeople and brokers, it's all about the price.
We created the software for one client and thought it could fill a need, so we made vast improvements to it and are trying to sell it to other dealers. We tried to sell it as a one lump sum price. For example you pay us $43,000 for the software and pay licenses of about $500 per month to our vendor who we have to pay, which we don't make any money off of(the monthly). Or the second option is to pay between $800-$2,500 per month and you get unlimited support, free upgrades and free enhancements 2 times per year(on the enhancements).
My problem is our competitors have an okay product for about $300 per month and our product has over 80 additional features that are much more state of the art and has integration to websites that this business segment uses all the time but they do it manually. It has money making features and money saving features that our competitors can't touch and will take few month if not years to even duplicate. Our product is currently priced at $800 - $2,500 depending on how many people use it. Our product can be fully customized as if it was a custom program.
We send our multiple emails over the last 3 month and had 50 businesses who called us but most are very small and can't really afford more that $350 per month. We did get about 5 big players that want the software and can easily afford it based on how big they are and what feedback they gave us.
We have not been able to sell it to another client yet, but we are very close(which means nothing to my bank account). I clearly understand that we need to show value for that price, or lower our price to get someone in the door.
Our approach has been to share the most important features that will make them money or save them money via emails every 2 weeks and we also put up a 5 minute video on our site and gave many many live demos, but yet they keep asking questions and not buying. We offered discounts, we even offered one guy a 10% commission if they bring us business.
Are they simply waiting us out to lower our prices since they are all dealers and know the game? Are we priced too high and they will not buy unless we are 30% less or so? or do we just have to keep sending them emails every 2 weeks and talk about all the great things this software offers? our first client took 1 whole year to buy from us and they were 100% convinced that we were the perfect company, that's how slow some of them are?
We have 2 very strong prospects that I would say are almost there one keeps saying they want to be 100% sure and their IT guy tells me to give them my best price and keep following up until they are ready! The other guy keeps telling me he is super busy and wants something in return to make it worth his while so I offered him a 10% commission if he brings in other business if he buys. I also have 2 other that are going back and forth and about 4 others that are at the 50% mark.
What should I do?