Choosing software based only on price? Here's why it may be bad tactics
- The price is right. Or is it?
- Points to consider when purchasing a software solution
- Final thoughts
“Well, roughly, what is your white label crypto exchange price? Do you think your white label software pricing model is advantageous compared to your competitors?” As a Soft-FX officer, who closely monitors the work of the sales department, I often encounter such questions from clients interested in Forex or cryptocurrency exchange solutions. And while there's nothing wrong with the crypto exchange software price inquiries, I see a problem with potential clients making them very early in the conversation. It is my firm belief that those who are interested in getting a beneficial WL or custom solution for their business at a favorable price, should start their chat with a sales consultant with different questions.
I will try and argue why the budget should not be the only factor influencing your negotiations with a software vendor and give a few points which, in my opinion, are much more important when buying WL or any other software solutions than the price alone.
The price is right. Or is it?
Price is one of the first aspects considered when ordering a comprehensive software solution from a provider. And this is a perfectly reasonable pattern of behavior, which, however, can turn into a malicious one if the cost becomes the main, if not the only, factor that influences the final decision.
First, let's address the elephant in the room right away. One might assume that because we are a software vendor, we are interested in distributing our solutions to as many customers as possible at a price advantageous to the company. This is partly true, but in our case, there is another important thing to add to this statement.
We believe that any software provider who expects to be respected in their field should be interested in distributing their solutions to as many informed customers as possible. By an informed client, we mean a client who fully comprehends what constitutes a solution from a technical standpoint, and grasps the value of the solution and the impact it will ultimately have on their business. And the thing is that the value that the particular solution adds to the business may not always correlate with the cost.
Let us consider two opposite cases in the software pricing spectrum. Buying the most expensive solution on the market is not necessarily the most rational decision. Despite the fact that an expensive software product may have the longest list of features imaginable, not all of them may be relevant to your business. For example, in the case of the cryptocurrency exchange software price model, you may not necessarily need margin trading features or market-making algorithms from the get-go. This is especially true for emerging businesses and startups looking to test specific theories. And if the vendor includes these features in the default package, you will be wasting assets (whether it is bitcoins or fiat money) that could have been profitably spent on something else, such as a marketing campaign or analytics.
On the other hand, if you're only looking at the lowest budget bar, be warned that you might get a product or solution that just can't evolve with your business. If the project you have in mind has long-term prospects, then in five or ten years you may find yourself in a situation where the low-budget solution you have chosen simply will not be able to support the growing range of operations. In critical cases, low-end solutions may not even meet the stated performance levels. There have been instances where customers lost updates and even technical support at the most crucial moments. The risk of having such an outcome is especially high in the crypto industry when ill-informed investors have ordered so-called ‘exchange clones’ or ‘duplicating scripts’.
Thus, when it comes to software for organizing cryptocurrency or FX trading, the cheaper solution may end up being prohibitively expensive when you have to replace it with a more reliable one, and redesign the entire technical infrastructure along the way.
Chances are, you will find yourself somewhere in the middle of these two extreme points in your search for the right solution and supplier. We just wanted to show you that the B2B software pricing is such a relative thing that it would be inconsiderate to start negotiating with a consultant by asking, “So how much is your solution?” This is an important question that you should definitely ask, but rather at a later stage when you find out if the vendor can meet your requirements and if their vision of the project coincides with yours.
In the next section, we have prepared for you a list of other things to consider in order to get the right software tool for your business.
You can discuss every pricing option available for WL solutions from Soft-FX with our consultant.
Points to consider when purchasing a software solution
These are some things you can ask your consultant directly or keep in mind when you listen to the sales pitch. They can be well classified as vendor due diligence, under which you can also ask about the size of the team working on your project, the stack of technologies used, current and previous clients. However, the paragraphs below are often overlooked, while they may help you make a more informed decision and define if, for instance, you are OK with this or that particular white label cryptocurrency exchange cost.
What are the onboarding options?
You need to get a solution that your employees can master quickly and without excessive delays. Software for crypto and FX trading business, as a rule, has a complex internal structure, which can negatively affect trading rates without well-tuned onboarding procedures. And if you need comprehensive software with multi-layered architecture, look at what's going on in the vendor's area of assisted implementation. A good sign is the presence of defined onboarding procedures with deadlines as part of the solution delivery package.
Is the vendor ready to address the possible bugs?
Unfortunately, software by its very nature is vulnerable to bugs and outages. It's a good idea to find out exactly how different problems will be addressed if they arise, or what problems you've encountered with the old software. It's also worth coin the idea of possible hotfixes, should you have a need. From the consultant's response to these questions, you will be able to tell a lot about the company's competence in the area.
How often do updates happen?
Reputable software vendors are constantly studying the market and updating their software products to meet the changing customer needs, whether this requires the implementation of new features or the improvement of existing ones. It will also be helpful to ask your consultant how updates are communicated to customers after rollout, and whether service uptime is affected during the maintenance of the solution components.
Is the system ready to grow with your needs?
Phrases like “extensive customization possibilities” can hide a lot, and they also can heavily affect the cost of a software solution.
In this case, you might want to specify whether the solution meets your current needs and those that may arise in the medium and long term. To check the vendor's expertise in this area, you can look at the case studies page and see how individual they were in their approach to each client's request.
How secure is the solution?
A reliable vendor never loses sight of the safety of their solutions and clients, it's an axiom.
The main thing you need to take out of the conversations with the salesperson is the conclusion about whether the vendor is suitable for you from a technological point of view, and whether its capabilities meet your objectives. And if you can get the solution provider to like your idea, there's a good chance you'll come up with a white label software pricing model that suits both parties like using the revenue share model, or grace period, until the business reaches a steady revenue stream.
With that said, it is time to return to the point that was mentioned at the beginning, the point that any software vendor seeks to sell their solution at the most advantageous cost. This is also where we want to add something from our side, which is that the price must be advantageous for both the vendor company and the client.
From the list given above, we can deduce that the case of each client is unique, at least that is how it should be approached by a reputable software developer. And you can count on a good, long-term relationship only if the client is satisfied with each item on this list, which will ultimately affect the final factor, namely the cost.
The budget issue is very sensitive with white label solutions, which is why it should be considered in the light of all customer requests, and the final price value should be generated in the process of negotiation and mutual concessions. Remember that a quality software provider is interested in the success of each of their clients, and thus willing to look for options to solve any challenge, including the pricing issue. If your vision of the potential project and the vendor's vision align, you can always find a common ground.
All Soft-FX white label solutions include an onboarding procedure to help you get up to speed with our products and services as quickly as possible and start getting the most out of it.