The
Seven Key Questions
to Ask When Purchasing Software
By J.P. Lepez (as printed in the June 2003 issue of 'The Journal')
© 2003. For reprint information or permission please contact Alpha
Data Systems.
Chances are if you go down to your local Comp-USA or to an online software store you won’t find software specific to the manufactured housing industry. There are, however, a few software applications that are designed specifically towards this audience in order to make the average retailer more productive and more profitable. Yet, many manufactured home retailers continue to get along either by using anything from Post-It Notes and typewriters to simple spreadsheets. For those who have been dying to have their salesmen use their CD-ROM drives for more than just automatic cup holders I have compiled a list of key questions to ask when choosing a software system.
How many years has the vendor been in business?
The dot com bust a few years ago taught us one important lesson: just
because a company can afford a lot of glitzy promotion when they first
get into business does not mean they will be here for the long haul. In
fact, most new software companies will entice you with rock bottom prices
and inflated promises only to be out of business within a year or two.
Don’t think this could happen to you? During Super Bowl XXXIV nearly
20 dot com companies were able to spend $2 million for a 30 second commercial.
Only 2 dot com companies advertised the following year. Longevity counts!
Find out how long the company has been in business and how many other
retailers are using their software.
Who owns your data?
This may seem like a silly question at first glance. If you bought the
software then you should own your data right? Not necessarily. In order
to increase revenue a lot of software companies are shying away from the
old model of a boxed product and turning instead to perpetual leasing.
Essentially, instead of owning the software outright the customer is obligated
to “unlock” their software by paying a licensing or leasing
fee on a monthly, yearly or quarterly basis. Some giant software companies
have made this infamous within the last couple of years and has made a
lot of customers furious in the process. If you decide not to pay the
fee the vendor could in effect lock you out of your own data.
Is the software based on newer technology?
When you deal with a vertical market such as manufactured housing there
may not be as many choices when it comes to industry specific software.
It is wise to investigate if the software vendor has consistently updated
their programs to work optimally with new technology instead of just rehashing
old ones. For this reason, I recommend that you stay away from DOS products.
Yes, believe it or not there are still vendors out there still trying
to peddle software based on this archaic technology since having to move
to a Windows based product would require a complete rewrite.
Is the software easy to use?
When being shown a demo of the software don’t let the salesperson
just breeze through screen after screen showing you the “bells and
whistles.” Instead, think of a scenario where you would likely use
the software most and then ask the salesperson to go through it step by
step. Then try doing the same steps with yourself at the controls to see
if you have an easy time going through the same motions. If it takes 10
minutes just to add a prospect’s name into the system then imagine
how much time you will be wasting if you multiply that by 2,000 prospects.
How much is support?
Software and technology companies alike have turned tech support from
what used to be a headache into a welcomed cash cow. If there was ever
a time to read the fine print it is when you are purchasing support agreements.
Some companies charge hundreds of dollars a month just for support and
then only give you a certain number of hours per month with anything exceeding
being billed at a handsome hourly rate. Others don’t include updates
to the software in their support agreement and will charge you for bug
fixes!
Is training included?
If you want to get a good laugh out of a software vendor then you should
try asking if training is included. Most software companies do not include
training and will charge you if someone else in your organization needs
to be trained. If this is the case, find out if they offer telephone support
or if you have to travel to their location and pay a seminar fee. This
could prove costly if you experience turnover within your company and
need to have staff retrained. Always insist on unlimited telephone training
when discussing support. Please, please stay away from companies that
only offer e-mail support! These companies are usually very small operations
(sometimes even “one man shows”) and are usually the cheapest.
What you don’t pay upfront you will pay later on when your system
is down and you have to wait for a response to your e-mails.
Does the software vendor have any affiliations
with manufacturers?
This is important because it shows a commitment to the manufactured housing
industry and exemplifies a stable company. If the vendor can be trusted
to provide and maintain software for large manufacturers who do millions
in sales then that speaks volumes for the know-how and support that vendor
can provide.
Be wary of companies that don’t answer these questions directly
or are not upfront with their prices. When in doubt, ask the vendor for
a cost of ownership report for one to five years. A competitive price
might turn out to be very expensive after you factor in all the licensing,
support and training fees. Conversely, just because another vendor offers
“too good to be true” prices doesn’t mean that it’s
a better value. If they only offer e-mail support and have been in business
for only a couple of years you might be paying much more after the sale.
J.P. Lepez is the marketing manager at Alpha Data Systems, makers of the HOME/TRACK Professional Suite of products for the manufactured home industry. He is also a certified computer and network technician and encourages you with your questions about technology in general or how it relates to the MH industry. You can call him at 800-476-3857 ext. 212.
© 2003. For reprint information or permission please contact Alpha Data Systems.
