VP Customer Services re: new subs policy

copied and pasted from Matt Lombard's blog ( hope he doesn't mind )

--------------------------------------------- Hey guys Let's address the two issues raised here individually. First, the issue of the late fees. There is a very small handful of customers who let their subscription support lapse, but continue to take advantage of the benefits of paid support for weeks, months, or even years before renewing their service. These late fees have existed since SolidWorks was founded in 1995 as a way to recoup some of the money that we lose by providing ongoing support to these customers while the vast majority of customers continue to pay for support on schedule. Again, these late fees are nothing new-they've existed since the subscription support program began, and have historically been applied only to those very few customers who opt to stay on a specific version of software for an extended period of time. If you take a look at the document Matt posted, you'll notice that it's not discussing a new policy, but that the late fee is simply increasing by $350 for people who go past a new time threshold. Like Matt has said himself, this only affects people who have been using subscription support but have not paid for it for more than 120 days/3 months.

As to the second issue regarding the increase in the fees themselves, there are a few reasons why the new tier and price was added. There are major improvements in the product itself that warrant ongoing investment in both core functionality (performance and quality) as well as new functions. These new functions require more support in order to make our customers as productive as possible. And, all of the revenue generated from these subscription program fees is 100% dedicated to improving and enhancing the software's functionality so that our customers can be more productive and efficient. It costs SolidWorks money to continue to provide subscription-level support to people who aren't paying for it. There's also the fact that things just cost more over time. And again, this late fee increase doesn't affect the overwhelming majority of our customers-only those who continue to take advantage of support past that 120-day/3 month period. Does that make sense to everyone?

If not, let me know.

Rich Welch - VP Customer Services SolidWorks

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and another post:

Let me try one more time to be VERY clear.

The policy of charging a fee has existed since the inception of SolidWorks as a corporation. Additionally the price of subscription service has never increased.

In general, our customer community (over 90%) has found the services rendered for the subscription price to be extremely beneficial with all of the services that existed and more that are being offered each day. SolidWorks and its reseller network provide these services and updated software to enhance and improve your effectiveness and efficiencies in completing your jobs by continually providing improvements in both areas at a tremendous cost.

We continue to invest in making you more productive. The original policy was constructed when there was only one product and with one specific price point. We now have several families of products that have varying price points and the 13 year old policy does not make sense given this new product construct. Therefore, we have modified the pricing of the existing fee structure to take in to account the product portfolio and pricing as well as the unfair burden the old policy placed on the over 90% of those customers.

I find this medium of communication not very beneficial and if anyone on this blog would like to have a live discussion within the next few weeks, I would be more than happy to host a conference call to explain the changes to an existing 13 year old policy and answer any other questions you may have.

Best regard, Rich Welch - VP Customer Services - SolidWorks

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As expected this new policy isn't very palatable to users Less impressive is the tone of arrogance and condescension of Mr Welch's explanation

Let us be VERY VERY clear sir your policy is offensive.

Several people at Matt's blog have already commented on the detail of these posts being BS What are your views?

Reply to
neil
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BTW check out the discussion for yourself at Matt's blog and participate in his poll too

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Reply to
neil

I suppose they are also going to extend the unofficial policy of being of absolutely no use whatsoever.

Reply to
That70sTick

">I suppose they are also going to extend the unofficial policy of being

If you are talking about supposed technical support over the phone-I heartily agree with you. Totally worthless-at least with my current VAR.

Only value of the subscription is in sp's and version updates. As an independent contractor I am forced to upgrade regularly so that I can continue to accept files from customers. I hold off as long as I can, but am still often forced to make the move before everything is settled with a new release.

I pay my extortion every year-grudgingly.

jk

Reply to
John Kreutzberger

*shrug*

It's a business, their in it to make money, just like you and I. yea the extra fee might suck, but, no one is forcing you to upgrade.. It could be worse, after your subscription is up for more than a year, they don't offer upgrade, you would have to buy a new seat, or pay some ungodly amount of money..

Altho I did see a few comments, about Tier'd services and the like.. that sounds like it would be a great thing.. because personally for me, I just want the servicepacks/upgrades.. screw tech support.. There's enough 'free' help out there that the VAR support system just isn't worth it.

and reading through matt's blog I saw this:

"If you lapse for 2 years you have to pay 2*$850 + 2*(annual subscription). "

I think thats wrong, least it doesn't sound right.. (I have an email that I shot to my VAR about it so I can confirm) I would think it would be $rape(2*850+anual sub) .. $850 charge for each year that your not on maintenance, plus the maintenance for the year to follow.

Now it would be interesting to see a comparison chart on what the other top 3d cad companies are charging (base price, subs, penalties, etc.. )

as well as a chart on how often they release new versions/service packs..

Reply to
tnik

Sorry I can't tell you the exact numbers for initial cost, but it wasn't as much as you think.

At least for Siemens/UG they invoice you for subscription each time it comes due. If the user doesn't fill in the paperwork to stop this you owe till you do. I believe they charge 25% for subscription which is less than that of SW. If you lapse a year they make you pay the lapsed year plus the coming year. If you lapse more than a year there is a nominal fee for re-establishment of the service. Tech support at UG is so much better than SW. When I had problems with an installation I got to a guy who REALLY knew exactly what he was doing. It didn't take a day and I didn't have to ship them a ton of files.

Add to that the fact that UG is a lightweight on resources when installed and runs faster. And since they don't move the furniture around with every release the steeper learning curve is a worthwhile investment.

To summarize: Siemens/UG provides a stable, robust product. Subscription is less percentagewise than SW There is a fee for lapse over a year. You don't have to buy a newer faster computer or get re-trained every year. Support IME is faster, more accurate and is focused on dealing with the customer's problem, not with providing another test case for their Q/C people. Service Packs and new releases are included in the subscription.

TOP

Reply to
TOP

I can't say anything about UG, never used it.. but how much is it? because for the base solidworks (iirc) it is ~$6000, 25% of that is $1500, which is (iirc again) what solidworks subscription service is.

and I'll agree that other systems might be more stable, prolly for the shear fact that they d> I believe they charge 25% for subscription which is

Reply to
tnik

SW is still $3,995. Subs is $1,395 if I have my figures right.

I think the UG I was using was around $6,000 new. When it comes to UG just consider that it does everything that can be done in parasolids while SW does a subset of that. They do update. They do have new releases from time to time. In terms of building a model SW will beat it every time unless the model has something in it that SW can't do.

I wouldn't get my hopes up about SW ever making existing code more stable/faster or bug free. They have been promising that for years.

T> I can't say anything about UG, never used it.. but how much is it?

Reply to
TOP

Yea, it's been a while, I couldn't remember the price. So, I guess if they did a percentage say 25%, that would be nice.. Plus it would be nice if the subs were cheaper for the basic version vs. the full blown office or pro, whichever.. of course I say that because I just have the basic version ;)

as for the code, I know it wont happen, but we can hope tho.. just like we can hope that microsoft would get their act straight too. lol

I did just talk to my VAR and I was correct.. it is $850 per year, per seat.. so if you want to get back > SW is still $3,995. Subs is $1,395 if I have my figures right.

Reply to
tnik

My answer to Ron Welch is that he is entitled to get his subscriptions fees, and he is entitled to deprive me of support if I don't pay them their support/subscription fees.

It doesn't bother me on lack of support because I've rarely ever needed answers from my VAR.

I am happy to pay subscription fees if I get a stable release for my subscription fee. I'll probably update to SWks 2008 by Nov-Dec 2008.

I want SolidWorks to succeed, but I want the success to be represented by solid releases of SolidWorks when I pay my fee.

Bo

Reply to
Bo

It amazes me that the SolidWorks VP of CUSTOMER SERVICE* could be so tactless and condescending communicating with his customers.

Poorly thought out, executed & delivered. Makes me wonder if Mr. Ron Welch didn't falsify experience and education on ye ole resume to get the job. You would think a VP would be smart enough to know and follow the most basic rule in business, "Don't bite the hand that feeds you". Tom

  • Where "Customer Service" is an Oxymoron (heavy on the moron).
Reply to
brewertr

"to take advantage of the benefits of paid support for weeks, months, or even years"

Can someone clue me in as to what are the "benefits of paid support"?? Service packs are bug fixes at best, and more often useless annoyances. VAR help is "We'll check on it and get back with you" or "We'll submit an SPR". The only tech support I'm aware of is on user forums. Again, what does paid support consist of?

Bill

Reply to
bill allemann

Actually Bill there are times when support can be helpful. This is especially true of registration issues. I had a major glitch with PDMWorks the other day and the VAR set up a telecon with the mothership. Took only a few minutes to find the culprit. Would have taken me ages.

Most people don't use it. I find that when I do and it is a bug it is a waste of time in getting the work out. When it is user error or trouble shooting it is much more helpful. But when I call for it I expect it to work fast and to end in a resolution for me.

TOP

Reply to
TOP

TOP, I have rarely used technical support phone help, but I agree that when something goes grossly wrong on an install, I have had no choice.

There is a wrinkle in installs that has bothered me for years, and I hope it is fixed now in SolidWorks.

In the past I had received DVDs with printed instructions on how to install SWks, & a couple times online versus printed instructions did NOT agree. Of course I used the printed instructions which caused me a problem, which needed a phone call to resolve.

SUGGESTION for Mr. Rich Welch - VP Customer Services SolidWorks:

Put up an "Installation, Activation" section of the website which details how to properly do installs, updates, upgrades, licenses, dual installations, and all those niggling housekeeping issues depending on what Windows version you are using, 32 bit or 64 bit OS, etc. and just have it right out there for any SolidWorks user, so we eliminate most phone calls.

Why should a user have to phone on what is arguably just a nuts and bolts list of what needs to be done by hundreds of thousands of users?

Bo

Reply to
Bo

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