Over the years, it has been normal for our key software suppliers to increase their pricing annually or bi-annually to reflect inflation and/or increased costs of software development to them.
Typically, these increases are between 3% and 5%, are below or around inflation and fall at different times.
Subsequently, they are seen by us and our client as ‘the norm’ and qualified with a statement such as “to ensure we continue to evolve our solutions” or “continue to maintain the high levels of investment for developing new and existing products”- so we rarely formally communicate them.
However, in the last few months, we have received communication from Sage, Sicon and Draycir regarding price increases in the coming months which will affect almost all of our clients.
Price Increase Details
From 1st February 2023, Sage 200 and Sage CRM rate plans will increase by approximately 5%. Changes will take effect on renewal invoices from 1st February 2023 or their next renewal term following that date. There are some exclusions which include Historical, Test and Recovery and SQL licences.
Draycir has also announced a 5% price increase which will be in place from 1st April 2023. This will affect all pricing, including new sales, renewals and subscriptions.
Finally, Sicon announced that from 1st April 2023 they will be increasing their prices by approximately 10%. Like Draycir, this will apply to new sales, renewals and subscriptions (increase to apply after 12 months on previous pricing). With regard to Sicon Approvals (formally Sicon WAP), CRM and the Document Automation modules, the increase will be higher. This is because all three of these products have undergone significant development over the last few years – especially in the case of Sicon Approvals (WAP), which has effectively been re-launched. Subsequently, we would strongly urge users of all these products to review the new versions and look to upgrade.
PKF Smith Cooper Commitment
The rate of inflation at typically been 3% or below for the last five years. As you are no doubt aware, during 2022 the rate jumped to over 10% and today still sits at 10.5%. This has impacted us in the same way it has our clients, with increased costs across the board.
We have not increased our own support rates for nearly 5 years and had planned to do so by 5% this year. However, having considered this in the context of the widespread price increases that we (and other Sage Partners) can not control, we have decided to hold this for a further 12 months to support our valued customers through this period.
We hope this information makes sense and is helpful to you. However, if you require any further help or information regarding these upcoming price increases please don’t hesitate to contact us via [email protected]
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