When comparing costs – don’t forget to add the Admin time

Yesterday we had our regular Tuesday webinar (Demonstration) and I was talking about how easy it is to use and administer LeadMaster.  Most sales reps are up and running in an hour or two.  We help with the initial setup so for the most part the system just works.  I compare that to several days of  Siebel training when I worked for Apple Computer – many of the sales reps said that still wasn’t enough.  If it takes several days to learn a product I say it isn’t a sales tool, it is a management tool that actually impedes the sales process because it takes away valuable selling time.

This morning I received my usual junk email and in there was an ad for an administrator for one of our competitor’s products.  I thought to myself.  Wow, that’s something most people probably don’t even consider when they’re thinking about purchasing a Lead Management / Email MarketingCRM system – the cost of the headcount to administer it.

I wanted to figure out the true cost of the license when you have to add a dedicated headcount as an admin.  So I did a bit so searching and found on average most of these companies are small to medium in size.  I’m estimating here but let’s say they have an average of 25 sales reps.  The competitor in this case says their most popular version cost $125 per user per month, but these are small companies so let’s say they they opt for the $65 / month / user version.  So for 25 sales reps that equals $19,500 per year.  That’s not bad when you take into account the company doesn’t have to purchase a server, firewalls, switches, hubs, routers, gateways etc. and they don’t need IT staff to manage all that stuff or a data center to secure it.  All-in-all a fair price.  One of the reasons that SaaS is so popular.

But wait.  What about the cost of that dedicated headcount.  You can see from the image below there are 113 openings for administrators for their system.  I’d say it’s a fair bet that most people who implement their system have either a dedicated headcount or close to it to administer the system.

Our competitor's solution requires full time administrators

Our competitor’s solution requires full time administrators

I didn’t see a salary for the one I looked at but let’s say they pay $25,000 on average (I’m sure the one in Santa Monica is going to be higher than that!).  Perhaps we need to add in the overhead cost of the building (lights, A/C, phone, water, coffee, rent/mortgage/taxes etc) and let’s not forget about benefits – that could easily increase the overall cost of this headcount by 25%.  Again this is an estimate – let’s say the fully burdened cost of this headcount is $38,000 so the math works easily.

So the original cost of the licenses was $65/person/month but when you add the administrator into the mix it turns out the true cost is $195/person/month.  That’s a big difference and one that many people ignore.  Whether it’s a dedicated headcount or not, their system is so complex that it requires a LOT of admin time.

A recent study indicated that 73% of this company’s users do not use 50% of the functionality of the system – put another way they aren’t using what they’ve paid for.  http://www.focus.com/questions/crm/according-salesforcecom-73-crm-users-do-not-use-50-available/

  • It’s like going out to dinner and paying for the whole meal but only eating half.
  • It’s like filling up your car but only getting a half tank worth of driving.
  • It’s like paying for four seats at the ballgame and only using 2.
  • It’s like buying a 50″ big screen TV but shrinking the screen down to 25″ to watch it.

With LeadMaster you don’t need a dedicated headcount to administer the system.  It’s as easy to administer as it is to use.  So you’ll save money with LeadMaster vs. the competition.  It’s no wonder this competitor makes you sign a 1 year contract and makes it almost impossible to get your data out of the system once you’ve got it in.  Not so with LeadMaster – the data flows in and out easily and there are no long term contracts.  Save money – get LeadMaster.

Check out our training video library and see for yourself just how easy it is to use the system.

The all-in-one solution for managing leads and customer relationships, automating marketing, email marketing, call center and inside sales.

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