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Cost Considerations – Part 1: What does my monthly cost include?

This blog entry is the first of three planned blog entries concerning Fellowship One pricing. Subsequent entries will address the Total Cost of Ownership (TCO) concept and a look at the Value-based Pricing (VBP) concept of software.

At the recent NACBA conference in Chicago, Jeff Pelletier and I conducted a break-out workshop about Fellowship One. I started out the presentation with a series of myths and misconceptions concerning Fellowship Technologies and our flagship product, Fellowship One.  Among the misconceptions I presented was around the belief that Fellowship One is expensive.

First, let’s understand that the term expensive is a relative term. I will talk more about that in the Value-Based Pricing discussion, but for now let’s assume that the relativity of the word “expensive” is a non-issue; let’s first look at what a church gets for its monthly fee.

When a church compares the monthly cost of Fellowship One to its current solution, many people note that the cost is often several times to many times more expensive than what they are used to paying for their current system. However, in most cases, this is not an apples-to-apples comparison. When comparing software solutions, one should consider everything the entire church, not just a few core users, is getting for that price.

For any system, legacy or new, a church must consider the incremental cost to not only buy but to also maintain the system.  True, a church can save some money by cutting corners and not doing certain things they ought to (system back-ups come to mind!), but for discussion purposes here, I will consider that churches perform the duties that are recommended in conjunction with all computer systems.  So what does a F1 customer get for its money?

With Fellowship One, the monthly cost includes not just access to an enterprise software solution (this would be the licensing portion), but also the following:

  • Up-to-date, fully-redundant, hardware (currently 3 full racks of servers) to operate the transactions;
  • Up-to-date application and operating system software to operate the hardware;
  • Unparalleled security when compared to what the church can offer locally; Your data is housed in a Tier-1 data center capable of withstanding an F5 tornado (twice the strength of a Category 5 hurricane); And we submit regular external security scans to further ensure your data.
  • Regular on-site and off-site data backups; We backup your data continually and take a copy off-site regularly. If your church office is destroyed, your data is safe with us and can be accessed from any Internet access point.
  • New software features and capabilities which are constantly being developed;
  • “No touch, no sweat” upgrades – these new capabilities are automatically added to the system without customer intervention;
  • Applications assistance through calls and emails into our technical support group with the broadest support coverage in the industry – Standard support is available 6am to 10pm CT, 7 days per week and emergency support is available round-the-clock; Although not perfect by any stretch, we consistently receive high accolades from our customers about our support. 
  • A broad base of knowledge concerning church best practices from our Delivery Services group who have implemented F1 across our entire install base;
  • Proactive customer care based on our monitoring of the system’s usage to ensure that the capabilities are being best utilized and to help in those cases were portions of the system is left idle.

Now consider the following questions in comparing what you currently get from your church software vendor:

  • What hardware and system software does your system operate on?  Both of these areas advance so quickly that for many it is hard to stay up with. Is your IT staff or consultant always keeping your systems up-to-date?
  • Are you doing all of the required system maintenance?  Are data backups performed every night?  What happens if a hurricane or fire destroys the church? How secure is your data, could someone simply break an window and take off with your server(s)?
  • Does your current ChMS vendor help you get the most out of the system? Or are you left on your own when it comes to implementation best practices and support?
  • What is the quality of your vendor’s support responses and when are they available? Many of our customers have said that they first came looking for a new solution because they could not get their current vendor to return their phone calls. And when is the vendor’s support available?  Most are only available on THEIR schedule, 8 – 5pm, Monday to Friday. Sadly, many are not available during the most critical period for a church, the weekend.
  • How was the last upgrade by your vendor supplied?  Many of our customers came from an environment where they were afraid to install a new release for fear that it would takes weeks or even months to recover from the new bugs introduced into the system. If that’s the case, what new features are you missing out on? With Fellowship One, our customers are always on the latest and greatest release.
  • If you are not using the features of your current system, how does your vendor help you implement the other things you are paying for? Do they even know whether you are using the system to its full extent? At Fellowship Technologies, we recently established a “Customer Care” group to proactively assist our customers to get the most out of Fellowship One. We think this will improve the adoption rate of some of the system’s most valuable capabilities.

As you can see, what a Fellowship One customer receives is far beyond simply a disk and some documentation. Now that you know all that is included, in my next blog I will address the Total Cost of Ownership of a software solution. This should help a church determine all things that come into the equation when considering the “true cost” of its current system.

Grace to you,

jhook

Published Monday, August 28, 2006 8:35 PM by Jeff Hook

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