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Re: How will price per user really work?

 

Hello Fabien,

Sorry for the of topic, but I think you still need some enlightenments


On Mon, May 19, 2014 at 7:09 AM, Fabien Pinckaers <fp@xxxxxxxxxxx> wrote:

> Ana,
>
> [...]
>
> Rio de Janeiro is only 2% cheaper than Barcelona.
>
>
> http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Spain&country2=Brazil&city1=Barcelona&city2=Rio+De+Janeiro



I take your provocation ;-)
It's like measuring prices in France by using Monaco as the reference. Rio
has a special history of under-valuation because of violence figures higher
than in Iraq.
Now that this is lowering, there is lot of inflation also due to World Cup
and Olympic games.
Still, there are extremely high contrasts in the city, most of the people
don't pay these tourist prices (I don't fortunately).
Even if there is this inflation with real estate, you also should bare in
mind that average education level in Rio should be close to a poor African
country. Since 2 years we don't have a single customer in Rio. Most of the
decision makers of these 10 employees companies in your target don't have
the equivalent of the French bac. The rare people with a good formal
education work in much bigger companies where it will still take years to
bring OpenERP (and not with these rates).
No wonder they miss how open source should be done and meet some 95%
failure rates of their OpenERP projects these days after some warmed the
market irresponsibly.

The real situation is an average customer where we put OpenERP will pay
most of his employees around 350-400 euros / month (not the minimum income
which is half that). There is no way they pay 60 euros per month just to
use the ERP... Else it's a lot more profitable for the company to have
dozens of guys doing the work all manually with Excel sheets.

Also,
there are many poor countries that are so small/poor that they didn't
develop alternatives national to SAP and co. So in these countries, either
people have no ERP, either they still have SAP and co'. May be it's the
case in Cameroun for whch Eva is speaking.

Now, Brasil is big enough so that several national actors had the
opportunity to develop. The national leader, Totvs, even became the 6th ERP
editor worldwide. Just like Brazil has been one of the countries with
generics drugs against Aids if you want.

So without lot's of customization to bring lot's of specific added value
(that have an additional cost), what happens is that out of the box,
OpenERP will not bring more added value  to a company than an ERP product
like that:
https://contaazul.com/planos

So you see, 5 users for 45 USD / month or 20 users for 100 USD / month.
Again, there are few things OpenERP will do much better (like WMS, CRM...),
but for the daily needs of these 10 - 20 employees companies which aren't
traditionally looking for competitiveness through IT innovation (unlike say
Silicon Valley or French e-commerce startups) it just get the job done
better in term of meeting all the legal requirements of the bureaucracy
that Brazil is. The companies where Akretion put OpenERP are the ones with
much more specific requirements that guys like Renato or me develop or make
develop, but given the education profile of the society and the economics
that can give a good job to the very little elite, this is not a scalable
business model here (unlike say in France or Belgium).

I also want to mention that Marcelo Bello is not a customer of Akretion and
is making his remark spontaneously.


Regards.


-- 
Raphaël Valyi
Founder and consultant
http://twitter.com/rvalyi <http://twitter.com/#!/rvalyi>
+55 21 3942-2434
www.akretion.com

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