For organisations committed to SugarCRM there are a benefits in entering into a multi-year contract.
The default arrangement with Sugar, and the one most clients have in place is year-to-year contract. This is where you pay in advance for a 12 month subscription and renew each year.
However, it is possible to have a multi-year contract with Sugar. And for many satisfied clients that are using SugarCRM and intend to keep using it for years to come this option can be worth considering.
There are a couple of advantages with having a multi-year contract including:
- Locking in pricing. At the time of writing this post there are no plans for price increases with Sugar, but for budget certainty a multiyear contract will lock in that pricing for the term of the agreement.
- Negotiated benefits. SugarCRM appreciate clients that commit to multi-year contracts and are often able to offer incentives for organisations that want to consider this option.
- Finance. Many organisation don’t realise that it’ possible to finance their software. E.g. You could finance a 3 year software subscription and then pay monthly instalments to your finance company. This can flatten the payments to being 12 monthly payment each year, rather than 1 larger one at the normal renewal time.
SugarCRM offer two sort of contracts
- Multi-Year, paid annually. This is very similar to how you work now, where you pay each year. E.g. For a 3 year contract, you pay for 12 month’s subscription at the beginning of Years 1,2 & 3.
- Multi-Year, paid up-front. This option provides the most negotiating leverage and is the best option if you are considering financing your software licenses.
Terms for Multi-year contracts are usually for 2 or 3 years.
Businesses are very used to the idea of financing items such as photocopiers and office equipment and committing to multi-year terms. It can be a real benefit for organisations to do the same with their software.
If you are interested in discussing a multi-year contract for your organisation please contact us on the link below.