PracticePeople In PracticePricing changes anger Pegasus resellers

Pricing changes anger Pegasus resellers

Financial software vendor Pegasus has come under fire from resellers because of increased charges in its pricing structure, resulted in some fee increases.

The Northamptonshire-based company, which produces the Opera I and Opera II financial software suites, has sent a new business plan to all its resellers, saying it will simplify administration for them and make the company easier to deal with.

But one section of the plan has annoyed some Pegasus resellers because it has increased the Opera accreditation fee from Pounds 1000 a year to Pounds 2400, payable in monthly Pounds 200 instalments.

Resellers will discuss their concerns at the next meeting of Admit, a group of about 50 Pegasus resellers, in May.

John Dixon, chairman of Admit, and managing director of systems integrator Computime, said: ‘Basically, any type of change is disruptive.’ He added that for smaller resellers it is ‘certainly an issue’.

Pegasus has angered resellers in the past year by temporarily freezing contact with its channel partners following its take-over by Freecom.net.

It also admitted to sending letters to its senior accounts and payroll software users urging them to change channel partners.

One reseller said: ‘The new pricing structure represents a 140% increase in charges, which is quite a jump for small resellers.’

However, Paul White, managing director of Pegasus, said the new pricing structure was aimed at saving resellers money by consolidating charges.

‘There’s opportunity for growth for Pegasus channel partners,’ he said.

‘This pricing structure benefits our resellers because they have been paying Pounds 1000 a year for accreditation and Pounds 1200 for product training.

On top of that was the cost of product literature.

‘The new charges will include those costs, so it will save money for our resellers.’

Links

Recruitment drive targets Sage resellers

Pegasus online

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