R3 has a pricing model that allows GovCon companies to start at a low and affordable per user cost. Then, as they succeed and get adoption they are enabled to flip into a model that allows for unlimited users. It also does not charge them any more for using more or advanced features. The more they use – hooray for them, no additional cost. In effect, we have a pricing model that rewards our customers for their successful growth, adoption, and use of more advanced capabilities. It encourages collaboration, participation and using our software to its fullest potential.
This pricing model is important for GovCon Contract Management. Sure, you can start with using our system for your Contract Department users. However, GovCon organizations unleash a lot of value by providing broad access to a single contract management system. They can get the entire organization working collaboratively, with real time information, from a single source of truth. Our pricing model makes this work for our contract management customers.
In this article we will explain our pricing model and how it works. Then, we’ll explain why this model is important for adding value for our GovCon customers.
The R3 Pricing Model – From User to Tiered
Like other software companies, we provide a per user license that enables companies to get started using our solution with just a few users at an affordable cost. In general, our solutions are less than $100/month/user starting at 5 users. The per user price does go down from there as you add users.
Unlike many other software companies, we let our customers “off the per user hook”. And, we price it to do this very early in the adoption cycle. We have a Tier-based pricing option. Our Tiers are based upon the number of employees (FTEs – W2’s and 1099s) in the organization. Our customer can pay a flat price/year for a solution and any number of R3 users can use the solution. The users may be inside the company or external parties such as subcontractors.
Our pricing is specifically designed to enable our customers to get started with the per user pricing and then “flip” into the Tier-based pricing. We set the pricing so that our customers are encouraged to flip to Tiered pricing early in their adoption. So, for a 100 person company, the time to flip is as early as 10 users.
In addition, we do not have levels of editions of our solutions, like Starter, Professional, Enterprise, etc. We just have one price. You have the ability to turn features off and on. You have the capability to extend the solution. You are even empowered to add your own new features. This doesn’t cost you any more.
Why it matters for GovCon Contract Management
Managing Federal contracts and subcontracts is very active work. These contracts represent living, changing relationships. And, contract are the core to the business of Federal Government Contractors. Many people are involved throughout the life-cycle of a Federal contract. You might say it is a team sport.
Below is a graphic depicting a typical set of GovCon contract life-cycle participants. At the center are the contract department users. Upstream in the business life-cycle are the people that work to win the business. They constantly interact with contracts and subcontracts. Downstream are the Program Managers that deliver on contracts. They often need to attend to work such as managing the ongoing contract deliverable requirements (monthly reports, personnel changes, quarterly quality plans, etc.). And, there are many people in other departments that need access to contract information to know what is going on and to do their jobs.
A GovCon organization could start with user licenses for just the people in the contracts department. However, GovCon organizations add far greater value by leveraging our solution to provide the organization with a collaborative, real-time, single source of truth. The system enables all of the participants to have controlled access to the proper information and to be able to do what they need to do. Thus, our customers get far greater business value when they have no financial or technical constraint on participation by people.
This is why we have a pricing model that let’s our customers “off the per user hook”. They can start with a few users and get their contracts in the system and processes and best practices set up. Then, they can begin to role out the system to a broader set of participants. Over time our customers develop better practices as they begin to experience working in a collaborative, real-time, single source of truth environment.
For additional information, contact us.