Announcement

Collapse
No announcement yet.

New Pricing

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #61
    Re: New Pricing

    Just my thoughts on this. Not gonna fly. I don't see how anyone with a revenue of 43K a month gross can afford 700 in costs for hosting and serving up pages and a checkout. We are growing a couple of businesses that are spending a lot of money in advertising and it just can not be justified. I'm curious how you are justifying resource usage here. Our clients do not use the support but a few times a year. And the traffic patterns on growing businesses are not that great on a server. Modules are paid for in addition, so I don't see how it stacks against the basic 3 unless you are comparing enterprise which these clients would not even entertain until they are over 100K a month. I don't think it's your price increase but the tiers on the price increase are not balanced for a growing business. I'm just saying, I don't even think I want to try to justify it. Too bad. I really love Miva.
    Suzanne

    __________________________________________________ _______

    aGenius Marketing
    800-768-2693
    Web Design & e-Commerce
    __________________________________________________ _______

    Comment


      #62
      Re: New Pricing

      Well we have been with Miva since about 1997, currently with 3 stores but had 5 which we reduced as price increases negated the need for additional sites. We were working on moving our wholesale business onto the web which under the new pricing scheme would be a significant price increase (with much thinner margins). Picking $100,000/yr is ridiculously low. There aren't many, if any, businesses that can survive on $100,000/yr. Our cost is going to increase from $50 X 3 = $150 to $250 X 3 = $750/mo. Seems to me that is a 500% increase. When one includes cost of modules, outside coding required and lack of some important functionality it seems to me it is time to look for a better value somewhere else.

      If you think lack of timely notice (even if it is the fine print) is the way to communicate with your customers so be it. Your customers just need to vote with their feet and move on. The bad thing for you is you can't get them back because they spent too much time and money finding another solution. Remember the golden goose story, it may come back to haunt you.

      Just my 2 cents from a person who has started and run 3 multi million dollar companies over the last 50 years.
      Thanks,
      Chet Vincentz
      [email protected]

      www.electrodyne.cc Quality Motoring Accessories
      www.racdyn-usa.com BMW, MINI & Porsche performance
      www.artisticartifacts.com Creative art materials

      Comment


        #63
        Re: New Pricing

        It seems that MIVA has gone to a Transaction Fee type web site ranging from
        infinity - 0.96%.
        3% - 0.6%
        1.8% - 0.9%
        FYI

        Comment


          #64
          Re: New Pricing

          Let the mass exodus from Miva begin. The sad thing is, if they are increasing prices 300%, they can afford to lose 2/3 of their customers and retain the same revenue. I highly doubt 2/3 of us will leave.

          It is very disappointing. We have been a Miva customer since 2001. I'm sorry you blew $50 million on a rebranding but my company is not going to pay for your mistake. I have no doubt we will find a competitive solution for a much better price, however, the cost of building an all new website from scratch, after just launching ready themes, retraining all our employees, pissing off all our customers, is likely going to put us under. We will be leaving Miva as soon as possible and I urge others to follow us.

          Jamin Jones
          CEO, the Appalachian Offroad Motorcycle Company
          AOMC.mx
          Jamin Jones, CEO
          the Appalachian Offroad Motorcycle Company

          Comment


            #65
            Re: New Pricing

            Rick:
            Does Miva have in development an accounting feature that could replace our QuickBooks accounting? That would definitely be our top choice for an added feature and would help us feel better about this price increase.
            Larry
            Luce Kanun Web Design
            www.facebook.com/wajake41
            www.plus.google.com/116415026668025242914/posts?hl=en


            Comment


              #66
              Re: New Pricing

              Larry,

              What do you have in mind?
              Thanks,

              Rick Wilson
              CEO
              Miva, Inc.
              [email protected]
              https://www.miva.com

              Comment


                #67
                Re: New Pricing

                Suzanne, Chet and Phishbed,

                Please contact me off forum, I'd like to discuss your specific use cases and cost structures.
                Thanks,

                Rick Wilson
                CEO
                Miva, Inc.
                [email protected]
                https://www.miva.com

                Comment


                  #68
                  Re: New Pricing

                  Rick:
                  It would be accounting functions comparable to QuickBooks but specific for Miva stores and would be build into Miva. Currently we only use 3 QB transactions, Customer, Sales Orders, and Payments plus QB reports. We've replaced the QB invoice with a Miva email template.
                  There of tons of QB transactions that are unneeded by us and wouldn't be needed in any Miva subset of QB like accounting.
                  The addition of accounting would be a real plus as well as a money saver for us.
                  Larry
                  Luce Kanun Web Design
                  www.facebook.com/wajake41
                  www.plus.google.com/116415026668025242914/posts?hl=en


                  Comment


                    #69
                    Re: New Pricing

                    It looks like the price increase comes down to a 1.8% transaction fee on stores grossing 1 million plus. Not too different from a lot of the "free" e commerce options I've been looking into. Couldn't get much of a feel for the 3Dcart's charges though.
                    If a 1 million dollar store can do a 2 % price increase, it would cover the higher hosting rates. Don't know if that's a possibility for us until I talk with the boss though. She'll probably want to take it out of my salary instead.;)
                    Last edited by wajake41; 10-03-15, 08:29 AM.
                    Larry
                    Luce Kanun Web Design
                    www.facebook.com/wajake41
                    www.plus.google.com/116415026668025242914/posts?hl=en


                    Comment


                      #70
                      Re: New Pricing

                      Originally posted by chetv View Post
                      ...There aren't many, if any, businesses that can survive on $100,000/yr...
                      +1
                      $100K/year is not a business, that's a hobby.
                      The only exception would be if you are selling your own labor or somehow have virtually no overhead.

                      Comment


                        #71
                        Re: New Pricing

                        Let's just do a little simple math to understand why this can be so upsetting for folks who are trying to grow a business and are looking at going from one level to the next. We are about a 750k website we started in 2012 looking to break $1m next year. So if we do $1m in sales and have a 30% gross margin which is actually higher than some other companies I have worked for we gross $300k. Subtract out $150k for payroll - 3 or 4 employees including management - $50k for advertising - $50k for facilities, utilities and incidentals. That leaves $50k net of which the government will take $15k-20K. So lets say we net $30k on those $1m in sales. Will previous pricing my platform cost me $1500/year which is easy to swallow and allows me to spend on upgrades, new functions, modules etc and still have $25k in net earnings. A lot less than a lot of people expect when you say I sold $1m of products last year - but a little breathing room. Now with my platform going from $1500 -> $18k I am left with $7k in net profits not a very comfortable margin and close to 75% of my existing profits - a tough pill to swallow especially if you are in a business with lower margins, higher operating costs and competitive pricing which means you can't raise your retail prices to absorb the increase. Only option left is letting go of employees and trying to be more efficient - sad days. Rick has already contacted me about our situation - hopefully Miva will still be viable for us- but I don't know right now.

                        Comment


                          #72
                          Re: New Pricing

                          Originally posted by jbart View Post
                          ... So lets say we net $30k on those $1m in sales...
                          Hey jbart, your math agrees completely with my experience. On my best year we actually netted 7% back in 2010 but that isn't likely to happen again any time soon. Since then our bottom line net has been in the 3%-4% range. As you say, the increased fees are going to gut that. Give up half (or more) of your profits? There would have to be a very good reason to do that.

                          Comment


                            #73
                            Re: New Pricing

                            The thing I'd like to stress across the board is this, I could sit here and defend why a pricing model based on bandwidth and disk is arcane and not a long term model and while the seat change helped a bit we're still looking for a model that scales with the size of our merchants.

                            All of that is true from our perspective by the way.

                            Our competitors limit features to stair step you up, along with other "hidden" tricks if you will and we really don't want to go that route.

                            Now with all of that said, this change is different than anything we've done in the past and I encourage anyone who wants to email me offline to discuss their specific situation to please do so.

                            We are learning and making exceptions.
                            Thanks,

                            Rick Wilson
                            CEO
                            Miva, Inc.
                            [email protected]
                            https://www.miva.com

                            Comment


                              #74
                              Re: New Pricing

                              Also as Larry and Gomblue posted about, this is also part of a long term play to continue adding a broader scope of functionality to the platform, the idea (as I've discussed before and at all the MivaCon's) is for Miva to be the center of your ecommerce business life, not one of many platforms (all with different costs), so this is also a good time to share where your other cost/pain points are as it helps us prioritize what we're adding/building.
                              Thanks,

                              Rick Wilson
                              CEO
                              Miva, Inc.
                              [email protected]
                              https://www.miva.com

                              Comment


                                #75
                                Re: New Pricing

                                Rick,

                                Miva is already an integral part of our ecommerce businesses. As the platform has become capable of doing more and more, we've migrated more of our daily routines into it.

                                As of May 1st, we began processing all of our phone orders for one store through the Admin rather than just letting Miva handle the online portion of our business. We did that as a test to see if it would be a workable and effective way of doing things for both stores.

                                Unfortunately, we now have to reevaluate that since the new pricing plan is based on the total dollars we run through the platform.

                                Other than accounting functionality, order processing is handled almost exclusively through Miva.

                                In order to make Miva the complete nerve center of our business, we would need a bridge that will link it to our Peachtree (Sage) accounting suite. The folks at eBridge offer that product but we just haven't pulled the trigger on it yet for several reasons.

                                Having Miva be able to handle that bridge functionality would easily cut our order processing time by 30% and would make some sort of pricing change more justifiable. (A quadruple increase like we're currently facing will still be a difficult sell however.)

                                I messaged you on Friday with our URLs but haven't gotten a response as of yet. I'm sure your team has been very busy and will get back with me sometime soon.
                                www.kicks-ind.com
                                www.comp-n-choke.com

                                Comment

                                Working...
                                X