Estimated reading time: 1 minute, 13 seconds

SAGE ROAD SHOWS SOUND OUT VARS

The channel and product management of Sage North America is doing road shows around the country and in Canada to meet with resellers. Reports are Toronto drew about 70 attendees, the most so far, with most cities running around 40 each.

One was held at this week's meeting of the Information Technology Alliance in Palm Desert, Calif., and the feedback I get is that the Sage reseller mood is not good, although this kind of listening didn't happen under the old management. Of course, it's tough to separate this from the general economic impact on VARs and anything that's peculiar to Sage. There is a lot of concern from resellers that the changed tiered pricing, which rewards new sales, is going to cost them their margin levels. Unfortunately, that's the name of the game with Sage and Microsoft also. The simple vendor math is that if new sales don't outstrip attrition, a company ends up with predictable shrinkage. And new sales bring more maintenance revenue and its hefty profit margin. Since this is not a growth market, most new sales are going to come from replacing something else, particularly the QuickBooks graduates. The other area good VARs need to look at being alert to those orphaned by other channel members. Anyone paying attention to the emphasis the vendors are giving payment processing services needs to consider that direction since it has the potential to produce recurring revenue that will help with the transition away from the license-revenue model.

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