Management Practices

New Subscription-based Software Pricings

Web Editor | July 10, 2011 | 2:42 PM

Going Monthly

The current economic climate has salon owners studying their costs, resulting in many resisting additional investments in new equipment and furnishings. But making do with the status quo may be costing them more than they realize.

To help ease the decision about adopting a new software program, some companies offer subscription-based pricing that gives owners the option to pay a monthly fee as opposed to dropping the few grand necessary to purchase the program outright. For example, Harms Software offers customers its Millennium Professional Edition, including training, maintenance and technical support, credit card processing and monthly education, for $169 a month. For $189 a month, salon owners can subscribe to the Platinum Edition, which also includes advanced client loyalty programs, automated confirmation calls and What If forecasting software.

As the 1,000-square-foot Baden Salon Spa launched in Burlington, Ontario, this past August, its owner took advantage of Millennium’s subscription option. “Opening any new business in this economy is intimidating, and software is a big investment,” she says. “This was a way I could get the technology I need at a price I can afford.”

“The subscription option also is great for established salons considering switching software programs,” says founder John Harms. “About 85 percent of owners who purchase our software have used a different software program in the past. And since we’ll apply a portion of the monthly fee to the cost if an owner purchases the software outright after a year, the subscription pricing is almost like an interest-free loan.

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