Questions 18 public, 8 deleted

1. 

   Posted by:

   jdynamic (+3)

   Date:

   Tue, 03 Mar 2009 23:21:24 GMT

   The value of this business is not the website - it's the software package. It's a unique, full-featured business management system which has taken several years to develop. To re-create this from scratch would take at least $150k of development costs and at well over a year.

   The return on investment can be calculated by looking at the price point of the software - $1497. It would only take 73 sales to get a 100% return on investment.

   Someone experienced in PPC or with an existing business-related email list could probably get that back in a couple weeks. From there it's pure profit. Who else would like to make $1497 per sale?

2. 

   Posted by:

   VenueForge (+3)

   Date:

   Tue, 03 Mar 2009 23:58:16 GMT

   "Someone experienced in PPC or with an existing business-related email list could probably get that back in a couple weeks. From there it's pure profit. Who else would like to make $1497 per sale?"

   You can make $1497 per sale? Then why not do it yourself?

3. 

   Posted by:

   shanky (+5)

   Date:

   Wed, 04 Mar 2009 00:17:32 GMT

   I have done ERP solution sales in the past, and I believe the per user license of $1497 is very expensive if you are looking to sell to SMB segment anywhere, especially with no customer base and shining testimonials, because there are discount offers from SalesForce.com and free software from SugarCRM. Plus running an ERP shop needs a support team and ongoing bug fixing otherwise clients will seek refund. So its a very difficult market to makes ERP sales without low pricing and customers testimonials. Potential buyers should keep this points in mind.

4. 

   Posted by:

   jdynamic (+3)

   Date:

   Wed, 04 Mar 2009 01:09:54 GMT

   To answer some of these questions:
   * I currently operate a web development and online marketing business which is very successful however requires significant investment of my time. I believe InstantSalesTracker has massive potential, and with the right marketing can reach thousands of sales within a short period of time. In order to grow the web development business, I’m needing to focus more time and resources on that, so InstantSalesTracker is one of those things that I’m needing to sacrifice. I’ve invested a lot into the software over the last few years and can see where it is capable of going so I want to make sure the person who takes it over is the right one.

   * The price point selected for this package is on par with similar products. There is a sizable niche in the business software market between low-end accounts-focused systems (like Quickbooks, MYOB, etc) and high-end enterprise systems (like SAP). There are relatively few direct competitiors and a large potential customer base. The great thing about this product is that it can be sold anywhere in the world. You can find pricing on comparible products at:
   Tracker Systems - http://www.trakersystems.com/pricing.html - from $2995
   Stone Edge - http://www.stoneedge.com/featureslist.htm - from $2500

   In addition, the product is available as a free 30 day full-featured trial. That gives users enough time to experience the benefits of the software, and understand the real value of the system for their business. The current prices for multi-user licences offers significant savings to the customer: 5 users: $3997, 10 users: $5997 (that's less than $600 per user).

   * I have got a number of client testimonials available upon request. Here's one to give you an idea:
   "We tried and evaluated several sales/inventory programs over the past few years. None provided all the functionality for easy stock-control. InstantSalesTracker has provided us with a comprehensive solution at a very competitive price. IST covers all of our requirements in customer sales, supplier purchasing, purchase orders, sales invoices and comprehensive reporting. For our small business it has become “must-have” piece of software. We have found IST easy to use with a strong support and pro-active development."
   - Ted Blake, Blake Sales & Services Pty. Ltd.

   * InstantSalesTracker is a downloadable product that users install on their computer. While SaaS certainly has it's place, I've found that many business owners don't feel comfortable with all their vital business information (like customers, sales, payment history, inventory, etc) being stored off-site by a 3rd party. InstantSalesTracker gives users what they want - more control over their data.

   * Also included in the sale is complete user documentation and tutorial videos (over 2 hours worth) which has proven to reduce the technical support load significantly. The software is designed to be very easy to use, so most users pick it up without any technical support involved. And when a question does come up, most users can find their own answers very quickly (help doco, knowledge base, tutorial videos). You also have the option to outsource technical support and ongoing development. I can provide the contact details to several reliable programmers which I have dealt with, or you can use your own if you prefer.

   * The value of the software to the customer is higher than you may expect. Put yourself in the shoes of these customers - if you owned a business and could save just 3 hours a week (very conservatively) by streamlining your sales, purchasing and inventory management, you could save tens of thousands of dollars each year. When you take the cost of several staff into consideration the savings increase even more. So a relatively small investment isn't a hard choice to make. And in most cases, the software is tax deductable, so it's really a no-brainer. This product sells itself.

5. 

   Posted by:

   ulua (+3)

   Date:

   Fri, 06 Mar 2009 04:33:28 GMT

   How many licenses have been sold?

   Do you have an opt-in agreements, newsletters, or any other method of communicating with customers?

   What is the code written in? Which version?

   Did you write the code or outsource it?

   Can you provide proof of revenue for the last year?

6. 

   Posted by:

   jdynamic (+3)

   Date:

   Fri, 06 Mar 2009 06:36:37 GMT

   Thanks for your questions.
   * We've sold around 35 licences in the last couple years.
   * Yes, we have an email newsletter with 218 active subscribers (as part of downloading the free 30 day trial) as well as email addresses for paid customers.
   * The database is built on Access 2003 and also includes a copy of the free runtime version of Access (if a user doesn't have Access installed on their computer). It works fine with Access 2007 as well.
   * Most of the design was done in-house. Some testing was outsourced.
   * Sales are tracked in our in-house sales management system. Details will be provided to the winning bidder once an NDA is signed.

7. 

   Posted by:

   webmaster5 (+6)

   Date:

   Wed, 11 Mar 2009 20:14:36 GMT

   I am very interested in the software however at a much lower price point.

   The major flaws that I see in your software and marketing as:

   One you have obviously been overpricing the software by comparing
   to competition on a one to one basis.

   StoneEdge

   1. Started in 2002
   2. Sold (?? Don't Know) Definitely more than 100 (based on customer links on their site)
   3. Future expansion Option (Current MS Access / Move MS SQL (more Robust technology) when business expands)
   4. Pricing
   (The Order Manager Enterprise(includes 10-workstation license & 1-yr Support Contract) $5,995.00)

   Trakersystems

   1. Started in 2005
   2. Sold 35 (based on your statement above.)
   3. Future expansion Option (Current MS Access / NO option when business expands)
   4. Pricing
   InstantSalesTracker Professional Edition-10 Users Share company data between 10 computers US$5997)
   (WITHOUT ANY SUPPORT CONTRACT)
   It is obvivious you are overpricing the software even without the support or expansion options.

   You are doing the same here while selling the full software rights

   OVERPRICING

   Like I said in the beginning I am very interested in the software but you are way over priced.

8. 

   Posted by:

   jdynamic (+3)

   Date:

   Thu, 12 Mar 2009 01:58:37 GMT

   Thanks for your feedback. In response to the points you've raised:
   1) Pricing is an interesting point. When the software was initially released around 3-4 years ago we set a price point of US$97 (which was far cheaper than any comparible software). The number of sales wasn't that significant because we found that customers undervalued the software and what it could do for their business. When we increased the price, it generated more demand - sounds strange, but it works. The new owner will be free to set the sell price for the software as they wish.

   2) I've had interest from potential buyers who want a MS SQL Server based solution, instead of MS Access. I've discussed this with several developers we deal with and already have quotes for handling this upgrade. The rough price is around US$4000 - US$8000. With a MS SQL Server backend the software would be able to support a larger number of users within an organisation and increase the potential for more sales/income. If the new owner would like this option, I can liase with them and the development team to ensure a smooth process to upgrade the software.

   If anyone is interested in placing an offer below the minimum bid price, please email info@jdynamic.com with "IST on Sitepoint" as the subject line.

9. 

   Posted by:

   webmaster5 (+6)

   Date:

   Thu, 12 Mar 2009 02:25:30 GMT

   What kind of additional effort is required to offer this software with a "SaaS" option also?
   Would you be willing to set this software w/ "SaaS" option?

   What is your bottom line reserve price (below which you will not sell)?

   Also, I see two statements above that seem contradictory to me (Please explain):

   "To develop a similar product would cost Hundreds Of Thousands Of Dollars."

   yet when I talk of what is missing you say:

   "I've had interest from potential buyers who want a MS SQL Server based solution, instead of MS Access. I've discussed this with several developers we deal with and already have quotes for handling this upgrade. The rough price is around US$4000 - US$8000."

10. 

    Posted by:

    jdynamic (+3)

    Date:

    Thu, 12 Mar 2009 05:51:32 GMT

    There are 2 ways to offer this software in a SaaS model:
    1) Set up a dedicated Windows server, install IST and users can access the software via Remote Desktop. There's little additional effort with this option. You can get a dedicated Windows server from many hosting providers, or can recommend a couple if required.
    2) Create a web-based front-end and keep the data in MS Access (as is). Depending on the level of functionality required, it could take up to 12 months development to fully re-created the front-end in PHP or ASP with Ajax.

    Upgrading the software to support an MS SQL (or MySQL) back-end is a relatively straightforward task (compared to designing the program from scratch). The front-end has been designed to be very flexible and only around 5% of the coding will need to be re-done to support a new back-end structure. Almost all the forms and reports will stay as is.