I was recently asked to review a contract for a client.
BTW… It’s a service I provide.
They were thinking of making a change with their line of business application and needed some help with a proposal.
As I went through this exercise I found a lesson I want to share.
And that is..
When looking for a new piece of software it’s important to understand the true cost.
Understand what you’re currently paying before you go and find another app.
You’ll need to know that before being able to properly consider any proposal.
In this clients case the proposal had several line items that were variable.
Meaning - As they grow the agreement grows.
This isn’t bad in and of itself from a cost perspective.
It’s just important to know what it will look like in the future compared to where they are today.
Just because something costs less now doesn’t mean it will cost less in the future.
Many vendors discount heavily upfront to get you in the door.
Then in subsequent years they make up the discount.
Sometimes that’s okay and sometimes that’s a loophole.
All in all, I really appreciate when clients reach out and ask for a review.
It’s better to know upfront what we’re getting into instead of stepping in the mud later on.