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In April, Avexxis announced new customers for its suite of e-commerce and multi-channel applications would receive a 50% reduction in licensing fees. Now the company is extending the break into 2005.
To boost business among Internet and multi-channel retailers, Avexxis Corp. earlier this year did what many other software development companies might see as a sure way to exit the business: cutting license fees in half.
But rather than backfire, the company says the price cut is working out just fine for Avexxis, a provider of multi-channel commerce applications to retailers such as Vermont Teddy Bear Co. and about two dozen others.
In April, Avexxis announced that new customers signing up for its suite of e-commerce and multi-channel applications would receive a 50% reduction in licensing fees. Avexxis announced the price cut as a marketing move to generate interest among multi-channel retailers with annual sales between $10 million and $60 million, the company’s core customer base.
While the reduction in user fees has yet to generate any signed new business, the strategy is stirring considerable interest and Avexxis president Frank Hanshaw says the company will keep the price cut in place for the foreseeable future-at least for the January to July 2005 sales season. “We’re getting lots of calls and the price cut is meant to appeal to a move-up buyer who wants a system that can be easily installed as well as customized," Hanshaw says.
With the reduction, Avexxis says a new medium-sized multi-channel retailer with 10 to 12 users may now pay user fees of $20,000 to $25,000, which is 50% off the earlier per-user license fee. “While the economy is picking up and budgets are starting to increase, enterprise systems are still a big expense,” says Avexxis chief operating officer Gregg Kober. “Our new pricing makes the software more affordable and frees up our clients’ financial resources for project consulting.
For a transactional database, Avexxis utilizes Universe from IBM, which runs on a Windows Server, UNIX or Linux. “Avexxis` software was designed to fully support customization, Hanshaw says.