For all, there are rewards "that would recognize their efforts to growth the business," he says. Deshaies continues it is now easier for resellers to move to higher margins, something they can do on a weekly basis. Being moved to a lower margin is something that still is calculated on a rolling 12-month average. There are incentives for cross selling – there is a product multiplier that applies when VARs carry multiple Sage packages - and also for moving customers from products that have been or are being sunsetted, for example, Sage Pro, to other members of the product line. "There is a migration bonus program," he says. With the growth of subscription sales, Sage has made the first-year subscription margins he same as perpetual margins, and increased second-year margins. There are also separate margins for license and installed base sales
SAGE REVAMPS PRICING TIERS Featured
Sage North America has re-architected pricing tiers for its midmarket products. The company says that it has dramatically reduced the number of tiers. "We are trying to simplify from a ten-tier structure," says Donald Deshaies, VP of channel management. Many of the tiers are left from the company's purchases of products years ago. He notes there will be a tier remaining that is unique to the construction and real estate applications.
