[In reference to a discussion in the technology platform]

Pricing in the ASP market is probably one of the hardest things and definitely something we at Snaz have spent a serious amount of time going through.

At present we have 3 different pricing models that we are using, and tailor towards the client and market we are aiming at.

Model 1.

- Minimal upfront rental fee of software license
- Monthly maintenance of system and bandwidth
- Per user usage fee

For each part of our system the client takes we are placing a minimal upfront fee to license that technology. This in no way cover our development/running costs but allows us to get a payment for the setup work needed to enable the client.

We then have a rolling monthly bill on top which covers our server costs and depreciation, bandwidth charges and an allocated amount of resource time to maintaining the client.

On top of this we then add a per user usage fee for our system which we charge on a 6 monthly basis - users are costed only once no matter how often they use it in that time

Model 2.

- No upfront fee.
- Similar monthly fee to 1.
- Per user usage fee
- Wireless air time/volume split

This model works well with our ASP partner over wireless charges to the user as well as a per user fee.

Model 3.

- Large upfront fee.
- Small monthly fee.
- No user or revenue fees.

This model only really suits ASPs who project large growth of their platform and/or don't want to share their revenue with us

On top of these models we are also considering the 'annual rental - automatic software upgrade' model versus the 'buy once - pay for your upgrades' model. At the moment it looks like we're going with the auto upgrade one, but I'll keep you posted if we change that.

Regards

Alex Judd
CTO
Snaz Commerce Solutions